Best Cheap Low-Mileage Car Insurance in 2023
You must have auto insurance if you’re like most motorists. But what if you don’t drive often or only travel a short distance? You can keep coverage without paying excessively high premiums if you have a low mileage auto insurance policy. Anyone who works from home, is retired, or frequently uses public transit or ride-sharing services may find it to be a useful alternative.
Our most recent data show that, for low-mileage vehicle insurance policies, which we characterised as those with 6,000 or fewer miles driven, consumers nationwide pay an average of $1,394. For drivers with low mileage auto insurance, USAA gives the most affordable representative rate.
If you are not eligible to join USAA, you might want to think about Geico. Its average rates are the second lowest in our analysis and $308 less than the national average. With an average rate $911 more than Geico’s for low-mileage auto insurance, Allstate is the most expensive provider.
It’s crucial to keep in mind that low-mileage rates fluctuate and frequently depend on state insurance laws. Drivers in California who log minimal mileage may, for instance, save more money than their counterparts in other states.
This is due to California law, which requires auto insurance providers to factor predicted yearly mileage costs into rate calculations. Obtaining free estimates from auto insurance providers licenced to sell coverage in your state is the best approach to obtain affordable, low-mileage car insurance.
Am I a Low-Mileage Driver?
Data from the United States Federal Highway Administration for 2020 show that the typical driver logs little over 14,200 miles annually, or about 1,183 miles monthly. You can be categorised as a low-mileage driver if your driving is lower than usual.
Discounts and “low-mileage” definitions differ from insurer to insurance. To find out if you’re eligible for a low-mileage discount or incentive programme, get in touch with your insurer (or many, if you’re shopping around). Remember that some insurance companies only allow eligible drivers who have held a policy for a specific number of years or have logged a specific amount of miles.
Is Car Insurance Cheaper If You Drive Less?
Your auto insurance premiums are influenced by a number of factors, including mileage. Drivers who log more miles on the road typically pay higher premiums. You may qualify for lower rates if you drive less. Your driving history, where you live, your insurance company, and any low-mileage discounts, plans, or programmes offered will all affect how much you save.
Our data show that drivers who log 6,000 miles yearly on average pay $48 (3%) less than those who log 12,000 miles annually on average. But you might be able to further reduce your rate by:
Usage-based insurance (UBI) programs
Low-Mileage Car Insurance Discounts
The majority of vehicle insurance providers provide eligibility-based discounts for policies, with some also providing special reductions for drivers with low mileage. If you don’t put many miles on the odometer each year, it could be worth calling your insurer to ask if they give discounts to customers who drive fewer than a predetermined number of miles annually.
USAA, State Farm, and American Family are three insurers we rated that all provide low-mileage discounts that might help you save money on your premiums. Even though they didn’t make our lists of the Best Car Insurance Companies of 2023 or the Cheapest Car Insurance Companies of 2023, a number of other insurers provide discounts for low mileage. These include Safeco, PEMCO Mutual, The Commerce Institute, and Farm Bureau.