Low‑mileage discounts: How much you can save on auto insurance

What is a low-mileage insurance discount?

A low-mileage insurance discount provides lower rates to drivers who are on the road less than the average driver.

What constitutes low mileage depends on the insurance company.

“The top end of most carriers to any amount of a discount is usually in that 7,000 to 8,000 annual mileage range,” says Janes-Bartley. “Meaning if you drive 6,800 miles annually, you might get a very small discount, and if you drive 3,000 miles annually, you might get a bigger discount.”

Low-mileage discounts are usually factored into your base rate. When you sign up for your car insurance policy, you provide your carrier with your estimated annual mileage. Your insurance company will give you a rate based on this information.

How much can you save with a low‑mileage discount?

How much you’ll save depends on how many miles you drive, where you live and the insurance company you choose. Discounts range from 2% to 20%. Here’s a breakdown of the averages from top companies:

If you drive less than 7,500 miles a year: 6% to 20%, or $134 to $597 a year
If you drive 7,501-9,999 miles a year: 5% to 19%, or $108 to $597 a year
If you drive 10,000-11,999 miles a year: 4% to 12%, or $61 to $385 a year
If you drive 12,000 to 14,999 miles a year: 2% to 6%, or $64 to $198 a year
If you drive more than 15,000 miles a year: typically no discount

Who is eligible and who is excluded from low‑mileage discounts?

Eligibility for low-mileage discounts is simple, since it’s based solely on how many miles you drive each year.

People who qualify for this discount typically include those who:

Work from home or have a hybrid work schedule
Have a short commute or carpool
Are retired
Frequently use public transportation or walk

While there is nothing about a driver that excludes them from a discount, certain cars may be ineligible, such as:

Classic or collector cars
RVs and motorhomes

“Usually, the vehicles eligible cannot be collector cars, classic or antique cars, or motorhome-type vehicles,” Janes-Bartley says.

State‑by‑state low‑mileage discount rates

In some states, such as New Hampshire and Wyoming, insurers offer a discount of only about 5% for driving less than 7,500 miles per year. In other states, you can save as much as 14% (Georgia and Texas) and 17% (California). Discounts taper off the more miles you drive. As you can see from the table, when you drive 12,000 to 14,999 miles, you enter the 2% discount range in most states.

State	Mileage range	Before discount	After discount	$ diff	% diff
Alaska	Under 7500	$2,215	$2,068	$147	7%
Alaska	7500-9999	$2,215	$2,121	$94	5%
Alaska	10000-11999	$2,215	$2,146	$69	3%
Alaska	12000-14999	$2,215	$2,181	$34	2%
Alabama	Under 7500	$2,107	$1,967	$139	7%
Alabama	7500-9999	$2,107	$2,017	$90	4%
Alabama	10000-11999	$2,107	$2,034	$72	3%
Alabama	12000-14999	$2,107	$2,072	$34	2%
Arkansas	Under 7500	$2,723	$2,526	$197	8%
Arkansas	7500-9999	$2,723	$2,570	$153	6%
Arkansas	10000-11999	$2,723	$2,600	$123	5%
Arkansas	12000-14999	$2,723	$2,648	$75	3%
Arizona	Under 7500	$2,333	$2,178	$155	7%
Arizona	7500-9999	$2,333	$2,210	$123	6%
Arizona	10000-11999	$2,333	$2,253	$80	4%
Arizona	12000-14999	$2,333	$2,282	$51	2%
California	Under 7500	$3,010	$2,485	$525	17%
California	7500-9999	$3,010	$2,564	$446	14%
California	10000-11999	$3,010	$2,699	$311	10%
California	12000-14999	$3,010	$2,824	$186	6%
Colorado	Under 7500	$3,222	$2,819	$403	12%
Colorado	7500-9999	$3,222	$2,853	$369	11%
Colorado	10000-11999	$3,222	$2,964	$258	7%
Colorado	12000-14999	$3,222	$3,080	$142	4%
Connecticut	Under 7500	$2,726	$2,424	$301	9%
Connecticut	7500-9999	$2,726	$2,450	$275	8%
Connecticut	10000-11999	$2,726	$2,515	$211	5%
Connecticut	12000-14999	$2,726	$2,580	$146	5%
Washington, D.C.	Under 7500	$3,394	$3,120	$273	8%
Washington, D.C.	7500-9999	$3,394	$3,161	$232	7%
Washington, D.C.	10000-11999	$3,394	$3,217	$177	4%
Washington, D.C.	12000-14999	$3,394	$3,303	$90	2%
Delaware	Under 7500	$3,097	$2,832	$264	8%
Delaware	7500-9999	$3,097	$2,880	$217	6%
Delaware	10000-11999	$3,097	$2,939	$158	4%
Delaware	12000-14999	$3,097	$3,002	$95	3%
Florida	Under 7500	$3,852	$3,394	$458	12%
Florida	7500-9999	$3,852	$3,504	$348	9%
Florida	10000-11999	$3,852	$3,599	$253	6%
Florida	12000-14999	$3,852	$3,697	$156	4%
Georgia	Under 7500	$2,739	$2,350	$389	14%
Georgia	7500-9999	$2,739	$2,310	$429	15%
Georgia	10000-11999	$2,739	$2,430	$309	10%
Georgia	12000-14999	$2,739	$2,552	$187	6%
Iowa	Under 7500	$2,228	$2,026	$202	9%
Iowa	7500-9999	$2,228	$2,072	$155	7%
Iowa	10000-11999	$2,228	$2,095	$132	6%
Iowa	12000-14999	$2,228	$2,174	$54	2%
Idaho	Under 7500	$1,791	$1,615	$176	10%
Illinois	Under 7500	$1,901	$1,726	$175	8%
Illinois	7500-9999	$1,901	$1,735	$166	7%
Illinois	10000-11999	$1,901	$1,756	$145	7%
Illinois	12000-14999	$1,901	$1,833	$68	4%
Indiana	Under 7500	$1,856	$1,739	$117	7%
Indiana	7500-9999	$1,856	$1,771	$85	5%
Indiana	10000-11999	$1,856	$1,794	$62	4%
Indiana	12000-14999	$1,856	$1,824	$32	2%
Kansas	Under 7500	$2,410	$2,165	$245	10%
Kansas	7500-9999	$2,410	$2,223	$188	8%
Kansas	10000-11999	$2,410	$2,265	$145	6%
Kansas	12000-14999	$2,410	$2,334	$76	3%
Kentucky	Under 7500	$2,976	$2,766	$209	7%
Kentucky	7500-9999	$2,976	$2,832	$144	5%
Kentucky	10000-11999	$2,976	$2,861	$115	4%
Kentucky	12000-14999	$2,976	$2,897	$79	3%
Louisiana	Under 7500	$4,180	$3,830	$351	8%
Louisiana	7500-9999	$4,180	$3,961	$219	5%
Louisiana	10000-11999	$4,180	$4,008	$172	4%
Louisiana	12000-14999	$4,180	$4,088	$93	2%
Massachusetts	Under 7500	$2,430	$2,207	$223	9%
Massachusetts	7500-9999	$2,430	$2,249	$181	7%
Massachusetts	10000-11999	$2,430	$2,281	$150	6%
Massachusetts	12000-14999	$2,430	$2,336	$95	4%
Maryland	Under 7500	$2,273	$2,139	$134	7%
Maryland	7500-9999	$2,273	$2,199	$74	5%
Maryland	10000-11999	$2,273	$2,210	$63	4%
Maryland	12000-14999	$2,273	$2,220	$53	3%
Maine	Under 7500	$1,701	$1,560	$141	8%
Maine	7500-9999	$1,701	$1,585	$116	7%
Maine	10000-11999	$1,701	$1,603	$98	6%
Maine	12000-14999	$1,701	$1,638	$63	4%
Michigan	Under 7500	$3,146	$2,854	$292	10%
Michigan	7500-9999	$3,146	$2,885	$261	9%
Michigan	10000-11999	$3,146	$2,954	$192	6%
Michigan	12000-14999	$3,146	$3,040	$106	3%
Minnesota	Under 7500	$2,561	$2,396	$165	6%
Minnesota	7500-9999	$2,561	$2,431	$130	4%
Minnesota	10000-11999	$2,561	$2,437	$125	5%
Minnesota	12000-14999	$2,561	$2,488	$73	3%
Missouri	Under 7500	$2,410	$2,225	$185	8%
Missouri	7500-9999	$2,410	$2,276	$134	7%
Missouri	10000-11999	$2,410	$2,304	$106	5%
Missouri	12000-14999	$2,410	$2,356	$54	3%
Mississippi	Under 7500	$2,455	$2,256	$198	8%
Mississippi	7500-9999	$2,455	$2,296	$158	7%
Mississippi	10000-11999	$2,455	$2,332	$122	5%
Mississippi	12000-14999	$2,455	$2,385	$69	3%
Montana	Under 7500	$2,541	$2,407	$134	5%
Montana	7500-9999	$2,541	$2,433	$108	4%
Montana	10000-11999	$2,541	$2,475	$67	2%
Montana	12000-14999	$2,541	$2,506	$35	1%
North Dakota	Under 7500	$2,079	$1,921	$158	7%
North Dakota	7500-9999	$2,079	$1,955	$124	5%
North Dakota	10000-11999	$2,079	$1,976	$103	4%
North Dakota	12000-14999	$2,079	$2,028	$51	2%
Nebraska	Under 7500	$2,387	$2,204	$183	8%
Nebraska	7500-9999	$2,387	$2,235	$152	6%
Nebraska	10000-11999	$2,387	$2,250	$138	6%
Nebraska	12000-14999	$2,387	$2,319	$69	3%
New Hampshire	Under 7500	$1,650	$1,549	$101	5%
New Hampshire	7500-9999	$1,650	$1,571	$79	4%
New Hampshire	10000-11999	$1,650	$1,584	$65	3%
New Hampshire	12000-14999	$1,650	$1,616	$34	2%
New Jersey	Under 7500	$2,736	$2,571	$165	6%
New Jersey	7500-9999	$2,736	$2,563	$173	7%
New Jersey	10000-11999	$2,736	$2,646	$89	3%
New Jersey	12000-14999	$2,736	$2,659	$77	3%
New Mexico	Under 7500	$2,486	$2,273	$213	9%
New Mexico	7500-9999	$2,486	$2,290	$196	8%
New Mexico	10000-11999	$2,486	$2,332	$154	6%
New Mexico	12000-14999	$2,486	$2,402	$84	3%
Nevada	Under 7500	$3,284	$2,951	$333	9%
Nevada	7500-9999	$3,284	$3,001	$283	8%
Nevada	10000-11999	$3,284	$3,076	$209	6%
Nevada	12000-14999	$3,284	$3,162	$122	3%
New York	Under 7500	$2,898	$2,566	$331	10%
New York	7500-9999	$2,898	$2,606	$292	9%
New York	10000-11999	$2,898	$2,673	$225	7%
New York	12000-14999	$2,898	$2,746	$152	5%
Ohio	Under 7500	$1,739	$1,530	$209	11%
Ohio	7500-9999	$1,739	$1,553	$186	10%
Ohio	10000-11999	$1,739	$1,595	$144	7%
Ohio	12000-14999	$1,739	$1,650	$89	5%
Oklahoma	Under 7500	$2,705	$2,494	$211	8%
Oklahoma	7500-9999	$2,705	$2,544	$161	6%
Oklahoma	10000-11999	$2,705	$2,574	$131	5%
Oklahoma	12000-14999	$2,705	$2,635	$70	3%
Oregon	Under 7500	$1,927	$1,785	$142	8%
Oregon	7500-9999	$1,927	$1,820	$107	6%
Oregon	10000-11999	$1,927	$1,845	$82	5%
Oregon	12000-14999	$1,927	$1,884	$44	3%
Pennsylvania	Under 7500	$2,428	$2,163	$265	10%
Pennsylvania	7500-9999	$2,428	$2,187	$241	9%
Pennsylvania	10000-11999	$2,428	$2,254	$174	7%
Pennsylvania	12000-14999	$2,428	$2,330	$98	4%
Rhode Island	Under 7500	$2,706	$2,479	$227	9%
Rhode Island	7500-9999	$2,706	$2,405	$301	11%
Rhode Island	10000-11999	$2,706	$2,581	$125	5%
Rhode Island	12000-14999	$2,706	$2,619	$87	3%
South Carolina	Under 7500	$2,367	$2,182	$185	8%
South Carolina	7500-9999	$2,367	$2,227	$139	6%
South Carolina	10000-11999	$2,367	$2,259	$108	5%
South Carolina	12000-14999	$2,367	$2,324	$42	2%
South Dakota	Under 7500	$2,635	$2,385	$249	10%
South Dakota	7500-9999	$2,635	$2,439	$196	7%
South Dakota	10000-11999	$2,635	$2,468	$166	6%
South Dakota	12000-14999	$2,635	$2,555	$80	3%
Tennessee	Under 7500	$2,214	$2,032	$181	8%
Tennessee	7500-9999	$2,214	$2,064	$149	7%
Tennessee	10000-11999	$2,214	$2,091	$123	6%
Tennessee	12000-14999	$2,214	$2,140	$73	4%
Texas	Under 7500	$2,631	$2,273	$358	14%
Texas	7500-9999	$2,631	$2,348	$284	11%
Texas	10000-11999	$2,631	$2,432	$199	7%
Texas	12000-14999	$2,631	$2,508	$124	5%
Utah	Under 7500	$2,250	$2,084	$166	7%
Utah	7500-9999	$2,250	$2,137	$114	5%
Utah	10000-11999	$2,250	$2,165	$86	4%
Utah	12000-14999	$2,250	$2,203	$48	2%
Virginia	Under 7500	$1,837	$1,640	$197	9%
Virginia	7500-9999	$1,837	$1,663	$174	8%
Virginia	10000-11999	$1,837	$1,703	$133	6%
Virginia	12000-14999	$1,837	$1,748	$88	4%
Vermont	Under 7500	$1,504	$1,413	$90	6%
Vermont	7500-9999	$1,504	$1,482	$22	1%
Vermont	10000-11999	$1,504	$1,482	$22	1%
Washington	Under 7500	$2,175	$2,036	$139	6%
Washington	7500-9999	$2,175	$2,072	$103	5%
Washington	10000-11999	$2,175	$2,104	$71	3%
Washington	12000-14999	$2,175	$2,126	$49	2%
Wisconsin	Under 7500	$2,026	$1,880	$146	7%
Wisconsin	7500-9999	$2,026	$1,894	$131	7%
Wisconsin	10000-11999	$2,026	$1,908	$118	6%
Wisconsin	12000-14999	$2,026	$1,944	$81	4%
West Virginia	Under 7500	$2,557	$2,338	$219	8%
West Virginia	7500-9999	$2,557	$2,363	$195	7%
West Virginia	10000-11999	$2,557	$2,416	$141	5%
West Virginia	12000-14999	$2,557	$2,457	$101	4%
Wyoming	Under 7500	$1,984	$1,894	$90	5%
Wyoming	7500-9999	$1,984	$1,907	$76	4%
Wyoming	10000-11999	$1,984	$1,965	$19	1%

Low-mileage car insurance discounts by company

USAA has the best low-mileage rates, but only offers coverage to military members and their families. Travelers has the next best low-mileage rates and is available to everyone. If you drive under 7,500 miles a year, you’ll pay an average of $1,852 per year, saving $251.

The table below shows some average low-mileage car insurance discounts offered by various companies.

Mileage	Company	Before discount	After discount	$ diff	% diff
Under 7500	Allstate	$3,205	$2,832	$373	12%
Under 7500	Farmers	$3,085	$2,488	$597	18%
Under 7500	GEICO	$2,148	$2,014	$134	6%
Under 7500	Nationwide	$2,463	$1,964	$499	20%
Under 7500	Progressive	$2,675	$2,473	$202	7%
Under 7500	State Farm	$2,874	$2,574	$300	10%
Under 7500	Travelers	$2,103	$1,852	$251	12%
Under 7500	USAA	$1,572	$1,437	$135	9%
7500-9999	Allstate	$3,205	$2,858	$347	11%
7500-9999	Farmers	$3,085	$2,489	$597	19%
7500-9999	GEICO	$2,148	$2,017	$132	6%
7500-9999	Nationwide	$2,463	$2,068	$395	16%
7500-9999	Progressive	$2,675	$2,533	$142	5%
7500-9999	State Farm	$2,874	$2,606	$268	9%
7500-9999	Travelers	$2,103	$1,884	$219	10%
7500-9999	USAA	$1,572	$1,464	$108	7%
10000-11999	Allstate	$3,205	$2,936	$268	9%
10000-11999	Farmers	$3,085	$2,701	$385	12%
10000-11999	GEICO	$2,148	$2,046	$102	5%
10000-11999	Nationwide	$2,463	$2,250	$212	9%
10000-11999	Progressive	$2,675	$2,565	$110	4%
10000-11999	State Farm	$2,874	$2,734	$140	5%
10000-11999	Travelers	$2,103	$1,952	$151	7%
10000-11999	USAA	$1,572	$1,510	$61	4%
12000-14999	Allstate	$3,205	$3,047	$158	5%
12000-14999	Farmers	$3,085	$2,887	$198	6%
12000-14999	GEICO	$2,148	$2,107	$41	2%
12000-14999	Nationwide	$2,463	$2,336	$127	5%
12000-14999	Progressive	$2,675	$2,614	$61	2%
12000-14999	State Farm	$2,874	$2,792	$81	3%
12000-14999	Travelers	$2,103	$2,013	$90	4%
12000-14999	USAA	$1,572	$1,538	$34	2%

How low-mileage car insurance discounts work

Typically, the fewer miles you drive, the lower your car insurance costs will be. You’ll simply provide an estimate of your annual mileage to your insurance company, and your rates will be adjusted accordingly.

It’s essential to review your policy to determine the listed annual mileage; most companies assume an average of 12,000 miles per year, but others may set it at a higher or lower number. If your average mileage is lower, simply update your policy to receive the discount.

How low-mileage discounts differ from pay-per-mile insurance

Low-mileage discounts and pay-per-mile insurance are both ways for drivers to save based on their driving habits. However, they work differently.

A low-mileage discount is offered on a traditional car insurance policy and uses an estimate of your annual mileage to calculate a discount off the base rate.

Pay-per-mile insurance bases how much you pay each month on a base rate plus a per-mile rate, and charges you based on the actual miles you drive.

	Low-mileage discount	Pay-per-mile insurance
Rates are based on:	Base rate + per-mile rate	Base rate - percent discount
Mileage is based on:	An annual estimate	Tracking of actual miles driven
Miles are tracked by:	Policyholder	Device or app
Best for:	People who prefer a set bill each month and don’t want to track miles	People who are willing to pay a different amount each month based on actual miles

If you're curious as to how much you could save on a pay-per-mile program, try our pay-per-mile calculator to see an estimate based on your actual mileage.

FAQ: Low-mileage discounts

What happens if you exceed your estimated annual mileage?

It depends. Sometimes, your insurance company won’t know. But what if you were to get into an accident on your way to work? Now, your insurance company knows that you regularly commute in your vehicle, not just occasionally drive it. It’s best to be honest.

How do insurance companies verify mileage?

This will depend on your insurance company, but most simply take your word for it, unless you are on a pay-per-mile program.

“Some carriers require mileage tracking, some do not,” Janes-Bartley says. “Some require a photo of the most recent oil change from time to time to document mileage. Carriers can and do use third-party data sources to gather odometer readings so even if the driver does not have to use an app or send ongoing documentation, there are other ways they can get that data and will when they can. If third-party data is unavailable, carriers will contact the driver for documentation and remove the discount if the driving is higher than estimated or documentation is not provided.”

How do you calculate annual mileage for insurance?

You can calculate your annual mileage for insurance purposes in a couple of ways:

Odometer reading: Look at your odometer at the end of the month and multiply the miles traveled by 12.
Commute length: Consider your work commute and calculate the weekly distance, then multiply it by 52 to account for the number of weeks in a year. Remember to exclude weekends, but include any regular errands or other driving activities.

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