Auto Insurance for Limited Use (2024)
Drivers with longer commutes pay $7.09/mo more on average for auto insurance than those who drive less. Ask your provider about low mileage discounts to save another 15%. Some companies are willing to offer even bigger savings to people who apply for a usage-based insurance policy. Limiting your commute time can also help reduce your auto insurance rates. Dive in to find great limited-use auto insurance rates.
Read moreFree Car Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Jun 21, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jun 21, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- If you limit your vehicle usage, you could save money on your auto insurance rates for the entire term
- Insurance companies ask you how long your commute is and how much you’ll drive annually to determine rates
- Drivers who only use their vehicle for trips to run errands or recreational drives will pay a pleasure usage rate
- If you’re the only driver in the home and you own two cars, the extra car’s rate could be lower than the primary one
- Some carriers offer usage-based insurance rates to their clients who are willing to have their driving monitoring
Auto insurance for limited use can be much cheaper than normal. limited-use auto insurance is a good choice for those drivers who have a short commute, work from home, or only driver for pleasure.
If your annual mileage falls well below the national usage average, usage-based auto insurance could benefit you.
The average commute in the United States is 25 miles and lasts 45 minutes during peak commuting hours.
Commuting by car has been the most popular mode of transportation for years, but the nation is nearing the end of the car era.
Read More: Best Auto Insurance Companies
More and more professionals are moving closer to work or choosing to take public transportation instead of driving endless hours in the morning and in the evening.
What is considered low mileage for insurance? Commuters and individuals who drive their vehicle for personal usage drive an average of 29 miles per day. This adds up to about 10,585 miles per year.
If your annual mileage is significantly less, you may want to buy limited-use auto insurance.
Comparing limited-use auto insurance quotes is the best way to make sure you are getting great rates, especially if you don’t drive far. Enter your ZIP today to start comparing quotes for affordable restricted-use auto insurance.
19,116 reviewsCompany Facts
Average Monthly Rate For Good Drivers
A.M. Best Rating
Complaint Level
Pros & Cons
19,116 reviews
17,759 reviewsCompany Facts
Average Monthly Rate For Good Drivers
A.M. Best Rating
Complaint Level
Pros & Cons
17,759 reviews
2,180 reviewsCompany Facts
Average Monthly Rate For Good Drivers
A.M. Best Rating
Complaint Level
Pros & Cons
2,180 reviews
Free Auto Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Insurance Carriers Want to Know How Much You Drive Each Year
You get asked so many different questions when you’re soliciting insurance quotes. There are many factors that go into determining your auto insurance rates, and this video tells you about some of them.
Since there’s a long list of details that you need to provide, you don’t really question why the details requested are relevant. After all, it’s natural to wonder why you’d pay less if your commute were five miles instead of 20.
The entire reason that annual mileage affects auto insurance is that people who drive more are exposed to more potential accidents.
If you only drive five miles a day, you’ll come across less irresponsible drivers than the average driver who drives 29 miles daily. Since data shows that you’re exposed to more accidents by the mile, rates fluctuate.
How does mileage have a direct effect on your rates?
Insurance companies have established that the average driver will drive somewhere between 10,000 and 15,000. When you fall into the average, you won’t be penalized for how much you drive but you also won’t receive any credits.
There are higher mileage band classifications and lower ones. Your rates for each car will be credited or surcharged based on the estimates that you give.
If you didn’t fully understand how important it was to give accurate mileage ratings, your information on file could be hurting you. Overestimating mileage means that you could potentially be overcharged.
Luckily, if you say you’re going to drive 15,000 miles for the whole year and that estimate is wrong, you can request that it be changed.
Let’s look at the average annual auto insurance rate based on the commute to see just what a difference your commute can make on your rates.
Average Annual Auto Insurance Rates Based on Commute and Mileage
| Companies | Average Annual Rates for 10 Miles Commute 6,000 Annual Mileage | Average Annual Rates for 25 Mile Commute 12,000 Annual Mileage | Difference in Average Annual Rates |
|---|---|---|---|
| USAA | $2,482.69 | $2,591.91 | $109.22 |
| Geico | $3,162.64 | $3,267.37 | $104.73 |
| State Farm | $3,175.98 | $3,344.01 | $168.03 |
| American Family | $3,401.30 | $3,484.88 | $83.58 |
| Nationwide | $3,437.33 | $3,462.67 | $25.34 |
| Progressive | $4,030.02 | $4,041.01 | $10.99 |
| Farmers | $4,179.32 | $4,209.22 | $29.90 |
| Travelers | $4,399.85 | $4,469.96 | $70.11 |
| Allstate | $4,841.71 | $4,934.20 | $92.49 |
| Liberty Mutual | $5,995.27 | $6,151.63 | $156.36 |
The auto insurance rate difference for commutes can be a dollar to over a hundred, depending on your company.
If you need to lower the mileage estimate for a car on your policy, you should call your agent. When the difference is minimal, the agent will process the change with no hesitation.
If, however, you go from driving 15,000 miles per year to 5,000 miles, you may have to provide documentation to show your current odometer reading.
Insurers Will Offer Discounts to Drivers Who Limit Usage In Other Ways
Let’s look at some steps to lower your rates if you don’t drive a lot of miles.
You don’t necessarily have to be a commuter or a business professional to drive 10 or 20 thousand miles every year.
Some retirees and home-based professionals still spend a lot of their time in their cars going on road trips or enjoying music as they take the scenic route down the coast.
If you don’t limit your usage in a mileage sense, you might qualify for savings elsewhere. In addition to offering limited mileage auto insurance discounts to qualifying drivers, companies will offer discounts to drivers to limit their usage to only driving their personal cars for personal reasons.
Every car will receive a different vehicle usage rating. Companies will assign one of three ratings to the vehicle:
- pleasure
- business
- commuter
Pleasure comes with the lowest rate because it’s the class where the risk measures are lowest. To find out how a car is rated, look at your declarations page and see if it says pleasure, commuter, or business next to the car.
Does commuting in your car pose more risk?
If you have just a small commute, you might wonder why you’re going to pay more than someone who drives a lot of pleasure mileage. The answer is in the risk like most answers pertaining to limited-use auto insurance rates are.
Here are a few reasons why people who commute by car are more likely than others to get into an accident:
- Most accidents occur during rush hour, according to the National Highway Traffic Safety Administration
- According to the Insurance Information Institute, 36,120 people died from auto accidents in 2019.
- Drivers are most likely to get into an accident within 25 miles of their home
- Commuters are often in a rush and are more likely to make risky decisions behind the wheel to get to work on time
- Commuters drive in stressful conditions rather than leaving their home when they want to
Limiting your commute time will save you in auto insurance rates and lower your chances of being in an accident.
What is the difference between usage discounts and restricted mileage auto insurance rates?
You can tell your insurer you’re going to limit your mileage and you’re going to drive for pleasure and the insurer doesn’t have a real way to verify the information.
If you slip and admit you were on your way to work when you got into an accident, your claim could be denied, but only if the insurance can prove you were purposely withholding information.
Although the use of auto insurance discounts reduces rates, many people get discounts for usage that they probably shouldn’t be getting.
Some companies are willing to offer even bigger savings to people who apply for a usage-based insurance policy. With this policy, you allow the carrier to monitor your driving with a device.
The rates will go up and down based on how much you drive and how often you drive.
Limiting your driving does pay off in the end. Not just in the sense that you’ll save money on gas, but also because your insurance rates could go down.
Looking for a limited-use auto insurance company? Get instant online quotes now to see auto insurance for limited use rates.
Frequently Asked Questions
What is auto insurance for limited use?
Auto insurance for limited use is a type of insurance coverage designed for vehicles that are used sparingly or have specific restrictions on their usage. It provides insurance protection for situations when the vehicle is not being driven regularly or is used for specific purposes only.
What are some examples of limited use vehicles?
Limited use vehicles can include classic cars, antique vehicles, show cars, collector cars, seasonal vehicles (e.g., motorcycles or convertibles used only during specific seasons), and vehicles used for occasional or recreational purposes.
How is limited use auto insurance different from regular auto insurance?
Limited use auto insurance differs from regular auto insurance in terms of coverage and pricing. Since limited use vehicles are not driven as frequently, they pose lower risks and may require less coverage. As a result, limited use auto insurance policies may have lower premiums compared to standard auto insurance policies.
What types of coverage are available for limited use auto insurance?
The specific types of coverage available for limited use auto insurance may vary between insurance providers. However, common coverage options include liability coverage, comprehensive coverage, collision coverage, uninsured/underinsured motorist coverage, and agreed value coverage (for classic or collector cars).
Can I use a limited use vehicle for commuting to work?
The usage restrictions for limited use vehicles can vary depending on the insurance policy and the insurance provider. In some cases, commuting to work may be allowed, while in others, it may not be covered. It’s important to review the terms and conditions of your policy or discuss it with your insurance provider to understand any limitations on commuting.
Are there mileage restrictions for limited use auto insurance?
Yes, there may be mileage restrictions associated with limited use auto insurance. Insurance providers may set specific limits on the number of miles you can drive your limited use vehicle within a given period, such as a year. Exceeding these mileage restrictions may result in reduced coverage or policy violations, so it’s important to be aware of and adhere to these limitations.
Can I modify my limited use vehicle without affecting my insurance coverage?
Modifying a limited use vehicle may impact your insurance coverage. It’s crucial to notify your insurance provider about any modifications made to your vehicle to ensure that your coverage remains valid. Failure to disclose modifications could lead to denied claims or policy cancellation. It’s always best to consult with your insurance provider before making any modifications.
Is limited use auto insurance available in all states?
Limited use auto insurance is generally available in most states; however, the specific availability and terms may vary. It’s important to check with local insurance providers to determine if they offer this type of coverage in your state.
How can I find the best limited use auto insurance policy?
To find the best limited use auto insurance policy, consider the following steps:
- Research and compare insurance providers that offer limited use auto insurance.
- Assess the coverage options and pricing of each provider.
- Read customer reviews and ratings to gauge the quality of their service.
- Request quotes from multiple providers to compare premiums.
- Evaluate any additional benefits or discounts offered.
- Consult with an insurance agent to clarify any doubts or questions you may have before making a decision.
Can I switch from a regular auto insurance policy to limited use auto insurance?
Yes, it is often possible to switch from a regular auto insurance policy to a limited use auto insurance policy. Contact your current insurance provider or explore other providers that offer limited use coverage. Make sure to review the terms, coverage options, and pricing to ensure it suits your specific needs before making the switch.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.