Posted by In 2022, the United States Federal Highway Administration described a low-mileage driver as someone who drives less than 1100 miles per month or less than 13000 miles per year.
So whether you are a retiree, you work from home, or you just don’t drive that much and you’re giving thought to purchasing car insurance, you will find the best car insurance for low-mileage drivers as you gently walk with me through this comprehensive guide.
Low-mileage car insurance is a great way for you to save money on premiums, and it is designed for drivers who put fewer miles on their vehicles. So if you’re looking for ways to save money on your car insurance, then you have to stick around because we have provided you with every vital piece of information you may need concerning this insurance.
What’s Low-Mileage Car Insurance?
Low-mileage car insurance, also known as pay-per-mile insurance, is a type of policy in which you get to pay your premium based on the number of miles you drive each year.
Unlike other insurance policies that base their premiums on certain factors, such as age, gender, claim history, etc., this insurance solely depends on the number of miles you drive. Therefore, you can agree with me that the less you drive, the lower the premium you get to pay.
Benefits of Car Insurance for Low-Mileage Drivers
The following are the benefits of low-mileage car insurance:
- Lower premiums
- No mileage tracking is required
- Discounts for safe driving
- There are no mileage restrictions
- Pay-per-mile plans are available
- It is easy to switch to a traditional plan if needed.
1. Lower Premiums
A very good benefit of low-mileage car insurance is its low premium rates. Since this insurance is solely based on the number of miles you drive, you can get cheaper premiums as long as you don’t spend much time on the road.
2. No Mileage Tracking is Required
You don’t need a tracking device or app to determine your mileage with this type of insurance. All you have to do is report your mileage to the insurance company each year when you renew your policy.
As a driver who doesn’t want to stress or worry about installing any device on your vehicle, this policy can be of great benefit to you.
3. Discounts for Safe Driving
These discounts can help offset the cost of your insurance. For example, some policies offer discounts for completing a defensive driving course, having no at-fault accidents, or having no speeding tickets.
This can be a great way to save money on your insurance while also making the roads safer for everyone.
4. There Are No Mileage Restrictions
Most low-mileage policies don’t have any restrictions on how many miles you can drive. This means that you can use your car as much or as little as you want without having to worry about your insurance rates going up.
If you are still contemplating a policy that gives you the flexibility to drive as much or as little as you want, then this can be a very good fit for you.
5. Pay-Per-Mile Plans Are Available
This insurance enables you to pay based on the number of miles you drive instead of basing your premium on a flat rate.
So, if you only drive a few thousand miles per year, you could end up paying much less for your insurance. Isn’t that awesome? Well, it is.
It can also be a great option if you work from home or if you live in a city where you don’t drive that often.
6. It’s Easy to Switch to a Traditional Plan if Needed
If you discover that your driving habits change over time, then you can switch from a low-mileage plan to a traditional plan.
You can do this by contacting your insurance company and requesting a change to your policy. This flexibility is one of the major benefits of low-mileage insurance.
You might have a query about who this insurance is for. Well, let’s find out then.
Who Can Purchase This Insurance?
The following are people who can purchase low-mileage insurance:
- People who have multiple cars
- This insurance is made for people who live in cities and don’t drive often
- People who work from home
- Retirees
- People who carpool or take public transportation
- It’s meant for people who only drive on weekends or for special occasions.
Criteria for Selection of the Best Low-Mileage Car Insurance
Below are the criteria you have to consider when choosing car insurance for low-mileage drivers:
- Cost of the policy
- Available discounts
- Coverage options
- Customer service
- Financial strength of the insurance company
- Claims process
- Availability of pay-per-mile plans.
List of the Best Car Insurance for Low-Mileage Drivers
Below is a list of the best car insurance for low-mileage drivers:
Overview of the Best Car Insurance for Low-Mileage Drivers
1. Nationwide
- Year Founded: 1984
- Location: USA
Pros
- They have relatively affordable rates for low-mileage car drivers whose mileage read between 3,000, 8,000, or even 11,000 miles per year.
- For drivers who want to save, you can enroll in their pay-per-mile insurance program (SmartMiles) as long as you are a low-mileage driver.
- Offers accident forgiveness, new car replacement, and vanishing deductible options to add to a policy.
Cons
- Car insurance rates for drivers with a DUI are higher compared to other competitors.
- High car insurance costs for drivers who cause an accident with injuries or even deaths.
Description
This is one of the largest insurance firms that offers affordable car insurance for low-mileage drivers, with a variety of policies and discounts.
Nationwide has a strong financial rating and a user-friendly website and mobile app, which makes it easy to manage your policy and file claims.
In addition to that, its customer service is always active 24/7 to enable you to get help whenever you need it.
2. Travelers
- Year Founded: 1953
- Location: USA
Pros
- They have excellent low-mileage car insurance costs
- This insurer offers discounts to drivers through a program called IntelliDrive
- Offers accident forgiveness and also minor violation forgiveness.
Cons
- The average cost for senior drivers is on the high side
- Auto insurance costs are on the high side for adding a teen driver to a policy.
Description
Travelers is another great option for low-mileage car insurance. The company is known for its flexible policies, which allow you to customize your coverage to fit your needs.
It also has a good financial rating and offers low mileage discounts like the IntelliDrive, which gives you a discount for good driving habits.
Just like Nationwide, this insurance offers 24/7 customer service, which makes it a great choice for low-mileage drivers.
3. USAA
- Year Founded: 1922
- Location: USA
Pros
- They have the cheapest costs for car insurance for low-mileage drivers
- Has a usage-based insurance program that good drivers can use to potentially lower their car insurance costs.
- They also offer good rates for young and senior drivers
- Offers accident forgiveness and a new car replacement.
Cons
- They offer auto insurance policies to veterans and active members of the military, plus their immediate families
- Does not offer gap insurance or vanishing deductibles.
Description
USAA is a unique insurance company. This is because it only offers insurance policies to current and former military members and their families.
However, if you’re eligible for coverage, USAA is an excellent choice for low-mileage car insurance due to its excellent rates and a great reputation for customer service.
4. Auto-Owners
- Year Founded: 1916
- Location: USA
Pros
- Received a very low level of complaints about its auto insurance policies
- Has decent costs for low-mileage car insurance
- Offers accident forgiveness, a vanishing deductible, and a new car replacement.
Cons
- Does not offer a usage-based or pay-per-mile car insurance program
- Rates are not the best if you have a DUI or poor credit.
Description
This is a regional insurance company that offers coverage in 26 states in the United States. They’re a great option for low-mileage car insurance, and they offer competitive rates, a wide range of discounts, and excellent customer service.
Unlike USAA, they do offer online quotes. So, if you’re looking for low-mileage car insurance, Auto-Owners is worth considering.
5. Geico
- Year Founded: 1936
- Location: USA
Pros
- Also offers great rates for seniors and young drivers, who can be very expensive to insure
- Offers a usage-based insurance program for good drivers who want to try to reduce their auto insurance costs based on driving habits
- Offers accident forgiveness coverage.
Cons
- You’ll be out of luck with Geico if you want coverage features such as new car replacement or vanishing deductible.
- The car insurance cost for drivers with a DUI on their record is only okay.
Description
Geico is one of the largest and most well-known car insurance companies in the world. They’re known for their great customer service and easy-to-use website.
One thing to keep in mind is that Geico is a direct-to-consumer insurance company, so you’ll need to purchase your policy online or over the phone.
However, they do have 24/7 customer service in case you need assistance.
6. Progressive
- Year Founded: 1937
- Location: USA
Pros
- They have decent auto insurance costs for low-mileage drivers
- This insurance has competitive car insurance rates for drivers with speeding tickets on their records.
Cons
- They have mediocre car insurance rates for good drivers and those with an accident or DUI on their record
- This insurance has the highest average rates for drivers with poor credit among the companies we analyzed
Description
They offer a wide range of discounts for low-mileage drivers, and their user-friendly website and mobile app make it easier for you to manage your policy.
With this firm, you are allowed to choose your budget and get a policy that fits within it. So, if you’re looking for low-mileage car insurance with so much flexibility, then Progressive is an excellent choice for you.
7. State Farm
- Year Founded: 1922
- Location: USA
Pros
- They have strong financial ratings
- This insurance provider has very good customer satisfaction ratings from its customers.
Cons
- Their website and mobile app can be difficult to use
Description
This is the largest insurance company in the United States, and they offer a variety of insurance products, such as car insurance for low-mileage drivers.
They offer a low mileage discount, and they’re known for their high customer satisfaction ratings across various rating platforms.
One unique feature of State Farm is its Drive Safe & Save program, which tracks your driving habits and offers discounts for safe driving.
So, if you’re a safe driver who doesn’t put a lot of miles on your car, State Farm is worth considering.
8. Allstate
- Year Founded: 1931
- Location: USA
Pros
- They have strong financial ratings
- High customer satisfaction ratings,
- And 24/7 excellent customer service.
Cons
- Their discounts are limited.
Description
One of the things that sets Allstate apart is its Claims Satisfaction Guarantee, which promises that your claim will be handled in a timely and satisfactory manner.
They also have a convenient mobile app and website, which makes it easy to manage your policy. And, like many other insurance companies, Allstate offers 24/7 customer service.
9. AAA
- Year Founded: 1902
- Location: USA
Pros
- They have strong 24/7 customer service
- AAA offers a special program for its policyholders known as the Dreams Foundation program
Cons
- Most of their offers are usually limited and unavailable
- They have limited discount offers
- Their policies are quite expensive
Description
AAA, or the American Automobile Association, is a popular insurance company that offers a variety of insurance products.
They offer a low mileage discount, and they’re known for their exceptional customer service. AAA also has a unique feature called AAA Roadside Assistance, which provides help if you need a tow, have a flat tire, or are stranded on the side of the road.
10. American Family
- Year Founded: 1927
- Location: USA
Pros
- They have high customer satisfaction ratings
- This insurance company is well-known for its strong financial buoyancy
- Their website and mobile apps are user-friendly.
Cons
- They offer very few discounts to their customers.
Description
This company offers a low mileage discount, and they’re known for their high customer satisfaction ratings.
American Family also has a unique program called the American Family Insurance Dreams Foundation, which supports local communities and organizations.
So, if you’re looking for low-mileage car insurance and you want to support a company that gives back, American Family is a good option.
Summary of Best Low-Mileage Car Insurance
Below is a table showing the annual premiums and online ratings of the best car insurance for low-mileage drivers:
| S/N | Companies | Rating | Average Annual Cost |
|---|---|---|---|
| 1 | Nationwide | 5.0 | $1,236 |
| 2 | Travelers | 5.0 | $1,220 |
| 3 | USAA | 5.0 | $1,042 |
| 4 | Auto-Owners | 4.8 | $1,549 |
| 5 | Geico | 4.7 | $1,427 |
| 6 | Progressive | 5.0 | $1,669 |
| 7 | State Farm | 4.0 | $1,358 |
| 8 | Allstate | 5.0 | $2,064 |
| 9 | AAA | 4.9 | $1,878 |
| 10 | American Family | 4.6 | $1,352 |
FAQs on Best Car Insurance for Low-Mileage Drivers
Who qualifies for low-mileage car insurance?
Drivers who qualify for low-mileage car insurance typically drive within 10,000 miles per year.
How do I get a low-mileage car insurance policy?
To get a low-mileage car insurance policy, you can contact your current insurer or shop around for a new policy.
What is a low-mileage car insurance discount?
A low-mileage car insurance discount is a reduction in your insurance premium based on the number of miles you drive.
Is a low-mileage car insurance policy worth it?
Low-mileage car insurance can be worth it if you drive fewer miles than the average driver. However, it's important to weigh the cost of the policy against the potential savings.
Are there any drawbacks to low-mileage car insurance?
The main drawback of low-mileage car insurance is that it may not be available in all areas or from all insurers.
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Conclusion on the Best Car Insurance for Low-Mileage Drivers
As a driver who drives less, this insurance can be a very good option for you because it can save you money on your insurance premium.
However, you need to shop around and compare different policies using comparison sites to make sure you’re getting the best deal before you purchase by carrying out some research.
In case you have questions or suggestions concerning this article, do well to use the comment section below. But before that, quickly go through the FAQs to see if your concerns have been taken care of.