Is Car Insurance Cheaper If You Drive Less?

Car insurance can often be cheaper if you drive less. Many insurance companies offer pay-per-mile or usage-based insurance programs that take into account the number of miles you drive.

These programs typically involve installing a telematics device in your car or using a mobile app to track your driving behavior and mileage.

By driving less, you reduce your exposure to potential accidents and decrease the likelihood of filing a claim.

As a result, insurance companies may offer you lower premiums as a reward for your reduced risk.Additionally, some insurance providers offer low mileage discounts for drivers who keep their annual mileage below a certain threshold, such as 10,000 or 12,000 miles per year.

If you fall within these limits, you may qualify for discounted rates.It’s essential to shop around and compare quotes from different insurance companies to find the best rates for your specific situation.

Factors such as your location, driving history, and the type of coverage you choose will also influence the cost of your car insurance.

According to our price analysis, people who drive an average of 6,000 miles per year pay $1,491 per year for auto insurance.

That’s $56 less per year than the national average of $1,547 for those who drive an average of 12,000 miles per year. You can reduce your car insurance rates further by:

Low mileage discount
Usage Based Insurance (UBI) Plan
Pay-per-mile policy

Low mileage car insurance discount

Most auto insurance companies offer discounts on auto insurance policies based on eligibility, with some offering specific discounts for drivers with low miles.

If you’re not adding more miles to your odometer each year, it’s a good idea to contact your insurance company to see if they offer discounts for policyholders who drive less than a certain number of miles in a year.

Many of the insurance companies like USAA and American Family in the USA offer low mileage discounts that can help motorists reduce their premiums.

Contact your car insurance provider to learn about possible low mileage discounts and other possible savings opportunities.