Our research found that USAA is most affordable on average for low-mileage drivers – people who drive 7,000 miles annually. But USAA only sells auto coverage to members of the military, veterans and their eligible family members. Other companies with competitive average rates for low-mileage drivers include Erie, Travelers, Geico and Progressive.
Key Takeaways
- Our research found that low-mileage drivers pay an average of $136 less annually for car insurance than high-mileage drivers.
- Low-mileage drivers may save money with discounts, pay-per-mile policies or usage-based insurance.
- The best way to see if you can save on your premium is to compare quotes from multiple insurers.
To compare average car insurance costs by mileage, we analyzed rate data for people who drive 7,000 miles per year (low-mileage drivers) and 14,000 miles per year (high-mileage drivers). Low-mileage drivers pay an average $2,388 annually for car insurance, according to our analysis. High-mileage drivers pay an average of $2,524.
USAA, Erie, Travelers, Geico and Progressive have the lowest average rates we found for low-mileage drivers.
The table below shows average annual rates by yearly mileage for companies in our report on the cheapest car insurance companies.
If you don’t drive your car often, you are generally considered a low-mileage driver. However, all insurance companies define the mileage threshold differently.
According to the Federal Highway Administration (FHWA), people drive an average of 13,476 miles annually. If you drive less than that, you may be a low-mileage driver. Contact your insurer to learn about its mileage breakdowns.
While several factors influence your car insurance cost, you may pay a lower premium if you drive less. That’s because insurers may consider you a lower risk of filing a car insurance claim if you spend less time on the road.
Alternatively, you can look into other policies that may help you save, including pay-per-mile or usage-based insurance.
Low-Mileage Car Insurance Discounts
Some car insurers offer low-mileage car insurance discounts for policyholders who drive less than a certain number of miles per year. The qualifying requirements and discounts can vary, so speak to an agent or customer service representative to learn more.
Pay-Per-Mile Car Insurance
Pay-per-mile insurance – also called pay-as-you-go or pay-as-you-drive car insurance – allows you to pay for your policy based on how much you drive. You typically pay a monthly base rate plus an additional fee per mile.
These policies typically offer the same coverage options as a regular policy. Some major insurers offer pay-per-mile insurance, while some companies strictly sell only this type of policy. Here are some options:
- Milewise from Allstate
- SmartMiles from Nationwide
- Mile Auto
- Lemonade (which now owns Metromile)
- Noblr, a USAA company
Pay-per-mile car insurance may only be worth it if you don’t drive frequently. If you drive a lot, you could end up paying more than you would with a traditional auto insurance policy.
Usage-Based Insurance
You can enroll in a usage-based insurance program, commonly known as UBI, which tracks your driving habits and/or mileage to potentially offer you a safe driver discount. Pay-per-mile is a type of UBI, but some companies provide non-mileage-based programs that only track your habits, and some offer programs that track both.
While the programs vary, some habits tracked include hard braking, fast acceleration, hard cornering, speeding and phone usage.
The table below includes some UBI options from major auto insurers:
Review what the company tracks before signing up for a driver tracking program. Keep in mind that not every program guarantees a discount. Some companies may even increase your rate if risky driving behaviors are detected.
“We always give the warning that not every company will generate savings,” said Mark Friedlander, senior director of media relations at the Insurance Information Institute, also called Triple-I. He noted that working with an agent can help you understand the data being collected and how your rate will be impacted.
“You need to understand what you’re agreeing to, what type of data the insurer is capturing from your driving and [whether you are]… going to suffer a penalty if they detect poor driving habits. Not every company does that, but some do, so you’ve got to weigh the pros and cons.”
Any car insurance policy purchased is individualized to fit the person behind the wheel. Your age, where you live, your driving record, and a host of other variables are weighed by insurers as they consider extending your coverage, and what that coverage will cost. The car insurance rates that different drivers pay are as varied as their driving profiles.
So, how did we arrive at these numbers for comparison? To get annual insurance premiums for this study, U.S. News worked with Quadrant Information Services. To find the rates, Quadrant works both with individual insurance companies, as well as publicly available Department of Insurance filings in all 50 states. Using data from these sources, Quadrant calculates expected insurance rates for individual driver profiles. Our study rates are based on profiles for male and female drivers aged 17, 25, 40, and 60. Vehicles used include the 2020 and 2025 Toyota Camry, 2020 and 2025 Toyota RAV4, and 2020 and 2025 Ford F-150, with annual mileages of 7,000 and 14,000 for each vehicle. Three car insurance coverage levels were used, as were credit tiers of good and poor. Clean driving records, as well as records with one accident, one speeding violation, or one DUI were also used in the calculations of certain driver archetypes.
The three coverage levels we used are referred to as “minimum,” “medium,” and “full.” Minimum coverage refers to the minimum coverage required in each state the insurer covers, along with any other mandatory coverages in the state. The medium coverage tier is $50,000/$100,000 bodily injury coverage, comprehensive and collision coverage with a $1,000 deductible, $50,000 property damage coverage, $50,000/$100,000 uninsured/underinsured motorist (UIM) coverage per accident, and any other mandatory coverages a state may require. The full coverage tier is $100,000/$300,000 bodily injury coverage, comprehensive and collision coverage with a $500 deductible, $100,000 property damage coverage, $100,000/$300,000 uninsured/underinsured motorist (UIM) coverage per accident, as well as any other mandatory coverages a state may require.
To get the average annual rate used in our analysis, we computed the mean rate for male and female drivers aged 40, who drive 14,000 miles per year, have full coverage, good credit, and a clean driving record. The rates are for comparative purposes only and should not be considered “average” rates available by individual insurers. Because car insurance rates are based on individual factors, your car insurance rates will differ.
