How To Get a Low Mileage Auto Insurance Discount (2024)
You could save up to 30% with State Farm's low mileage discount on auto insurance for driving less than 7,500 miles annually. Other companies, such as Safeco, Geico, and USAA, award low mileage insurance discounts to their customers. We'll help you learn how to get a low mileage auto insurance discount below.
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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: Oct 18, 2023
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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: Oct 18, 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
- The best auto insurance companies, such as State Farm, Safeco, and Geico, offer low mileage discounts to drivers who travel fewer than 7,500 miles annually
- Low mileage drivers are on the road less and therefore are less likely to crash and file an insurance claim
- Drivers can also look for other auto insurance discounts to maximize their savings
Not sure how to get a low mileage auto insurance discount? Drivers who aren’t on the road often are less likely to get into an accident and file a claim, so companies such as State Farm, Safeco, and Geico auto insurance offer a discount for low-mileage drivers who drive less than 7,500 miles per year.
Continue reading to learn all about low mileage discounts, how to qualify for these auto insurance discounts, and where to buy the best car insurance for low-mileage drivers. If you’re a low mileage driver and want to get started on finding discounts, use our free quote comparison tool to get started.
Low Mileage Auto Insurance Discounts Explained
Does annual mileage affect auto insurance rates? Yes, annual mileage can affect your auto insurance rates. A low mileage discount is a percentage taken off of your auto insurance coverages if you drive fewer miles than the average driver. Generally, it applies to coverages not required by your state, so it would be a discount on collision and comprehensive auto insurance, not your required liability auto insurance.
We go over how to qualify for a low mileage discount below.
How to Qualify for Low Mileage Auto Insurance Discounts
An auto insurance low mileage discount isn’t offered by every auto insurance company, but those who offer it require drivers to drive under a specific amount of miles annually to qualify. Most auto insurance discounts for low-mileage drivers go to auto insurance policyholders who drive fewer than 7,500 miles per year. For example, you can get the State Farm low mileage discount for driving less than 7,500 miles annually.
This number may be higher or lower depending on what company you pick. A USAA low mileage discount has different requirements than Travelers auto insurance. Contact your auto insurance company to see if it offers a low mileage discount and what you need to do to qualify for the discount.
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Most companies require one of the following forms of proof to qualify for a low mileage discount for car insurance:
- Tracking devices
- Pictures of odometer readings
- Verification from a third party
For example, if you’re participating in a safe driving program, such as State Farm Drive Safe and Save, your insurer likely uses your mileage from that program to automatically reward you with a discount. You may also need to submit a picture of your odometer each year to qualify.
Your insurance company will clearly state how it wants proof of low mileage to issue an auto insurance discount.
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Choosing the Right Auto Insurance Plan for Low Mileage Drivers
Low mileage discounts affect your auto insurance rates, although how much you’ll save depends on the company. Take a look at the average discounts below to see how low mileage discounts vary among companies.
Low Mileage Auto Insurance Discounts by Provider
| Company | Percentage |
|---|---|
| 21st Century | Up to 25% |
| AAA | Varies |
| Allstate | Up to 20% |
| American Family | Up to 20% |
| Ameriprise | Up to 30% |
| Amica | Up to 15% |
| Country Financial | Varies |
| Esurance | Up to 15% |
| Farmers | Up to 10% |
| Geico | Varies |
| Liberty Mutual | Up to 12% |
| MetLife | Up to 15% |
| Nationwide | Varies |
| Progressive | Up to 30% |
| Safe Auto | Varies |
| Safeco | Up to 20% |
| State Farm | Up to 30% |
| The General | Up to 10% |
| The Hanover | Up to 15% |
| The Hartford | Up to 15% |
| Travelers | Varies |
| USAA | Up to 20% |
The amount of mileage differs among companies. An Auto-Owners insurance low mileage discount requires you to drive less than 10,000 miles per year, whereas State Farm auto insurance discounts for low mileage drivers require you to drive less than 7,500 miles per year. Read more about these two companies in our Auto-Owners auto insurance review and State Farm auto insurance review.
While the percentage you’ll save also varies from company to company, a company with a higher percentage saved doesn’t necessarily mean it will be the cheapest company for you. You should also consider the average rate of a company before the discount is applied.
Cheaper companies may offer a smaller discount, but because their rates are lower to begin with, they may still be the cheapest option for most drivers.
Other Ways to Save on Low Mileage Auto Insurance Policies
Low mileage discounts aren’t the only way to save on your auto insurance policy. Most insurance companies offer various discounts to choose from, such as good student discounts and safe driver discounts. So make sure to visit your insurance company’s list of discounts to make sure there aren’t any you are missing out on.
Read More:
If you have already exhausted your discount options at your company but don’t want to switch companies, you may want to consider raising your auto insurance deductible if it’s low. We don’t recommend raising it to an amount you can’t afford to pay out of pocket.
If you already raised your deductible and utilized all the insurance discounts possible, shopping around for a new company can be helpful to lower your rates. Read more about how to switch auto insurance. You can also enter your ZIP code into our free quote comparison tool below to find a company that offers a better price.
Saving With Low Mileage Auto Insurance Discounts
Getting a low mileage discount is a great way to get cheap auto insurance. Most insurance companies require that you drive fewer than 7,500 miles per year and provide proof of your low mileage to get a discount. You can also take advantage of other discounts to maximize your savings.
If you want to find a lower rate on auto insurance no matter what your mileage is, use our free quote comparison tool to help you find the best rate from companies in your area.
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Frequently Asked Questions
How much is a low-mileage discount?
The potential savings with a low mileage auto insurance discount can vary depending on the insurance company and your individual circumstances. Discounts typically range from 5% to 30% off the base premium. It’s essential to check with your insurance provider to understand the specific discount percentages they offer.
What is a low mileage auto insurance discount?
A low mileage auto insurance discount is a reduction in insurance premiums offered by insurance companies to policyholders who drive fewer miles than the average driver. It is a way for insurers to reward drivers who have lower exposure to accidents and potential claims.
How can I qualify for a low mileage auto insurance discount?
To qualify for a low mileage auto insurance discount, you typically need to provide your insurance company with accurate information regarding your annual mileage. Most insurers have a threshold that determines eligibility, such as driving less than a certain number of miles per year. This information can be provided during the insurance application process or when updating your policy details.
How do insurance companies verify my mileage?
Insurance companies may use different methods to verify your mileage. Common methods include self-reporting, using odometer readings from your vehicle, or utilizing mileage tracking devices or telematics apps. Some insurers may also request periodic mileage updates or verify your mileage during policy renewals.
What are the benefits of a low mileage auto insurance discount?
A low mileage auto insurance discount can offer several benefits, including:
- Lower insurance premiums: By demonstrating that you drive fewer miles, you present a reduced risk to the insurance company, which can result in lower premiums.
- Potential savings: The discount can lead to significant savings over time, especially if you consistently maintain low mileage.
- Incentive for responsible driving: Encouraging lower mileage promotes responsible driving habits and potentially reduces the risk of accidents.
What if my mileage increases during the policy period?
If your mileage increases significantly during your policy period, it’s important to notify your insurance company. Some insurers may require you to provide updated mileage information, which could potentially affect your premium. Failing to inform your insurance company about increased mileage could lead to issues if you need to file a claim.
Are there any restrictions or limitations with a low mileage auto insurance discount?
Insurance companies may have certain restrictions or limitations associated with their low mileage auto insurance discounts. Some common restrictions include:
- Annual mileage limits: There may be a cap on the number of miles you can drive per year to maintain the discount.
- Exclusions for specific usage: Discounts may not apply to certain types of driving, such as commercial use or driving for ride-sharing services.
- Verification requirements: Insurers may request periodic mileage updates or verification to ensure compliance with the discount terms.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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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.