How Low Mileage Discounts Can Save You Money on Car Insurance

Last Updated on December 11, 2025

If you own a car but don’t drive very often, you may be leaving money on the table. Many drivers don’t realize that insurance companies offer discounts specifically for people who put fewer miles on their vehicle each year. These “low mileage discounts” can significantly reduce your premiums—sometimes by hundreds of dollars annually.

Surprisingly, most people never ask about these savings. A national survey once showed that only a small percentage of drivers ever inquire about mileage-based discounts. If you drive less than the average American, it’s worth checking whether your insurer offers reduced rates for limited vehicle use.

Key Takeaways

• Low mileage discounts reward drivers who put fewer miles on their vehicle each year.
• Mileage thresholds vary by insurer, but 7,500–10,000 miles/year commonly qualifies.
• Usage-based programs help verify driving habits and can offer large discounts.
• Retirees, remote workers, and carpoolers are often ideal candidates for low-mileage savings.

How Do Low Mileage Discounts Work?

Car insurance pricing is based largely on risk. The more time you spend on the road, the greater your chance of getting into an accident. If your car is driven infrequently, your risk drops—and your insurance rates may drop with it.

Many insurers offer:

• Low-mileage discounts: Reduced rates if you stay under a yearly mileage cap (varies by insurer).
• Low-use/pleasure-use discounts: Savings for vehicles used primarily for errands, weekends, or occasional driving.

In short: driving less = lower exposure to risk = potential savings.

What Qualifies as “Low Mileage”?

There’s no universal definition because every insurance company sets its own threshold. However, most insurers consider the following ranges “low mileage”:

• 7,500 to 10,000 miles per year — often qualifies for a standard low-mileage discount
• Under 7,500 miles per year — may qualify for larger savings
• Under 5,000 miles per year — often considered “very low mileage”

To know for sure, call your insurer and ask whether your personal mileage qualifies.

When Should You Inquire About a Low Mileage Discount?

You can ask about a mileage discount anytime, but the best opportunities are:

• When starting a new policy — insurers calculate mileage expectations when you sign up.
• If your driving habits change — such as retiring, changing jobs, or becoming a remote worker.
• During yearly policy reviews — a common time to update mileage assumptions.

Your insurer may request odometer photos, telematics data, or confirmation of past mileage to calculate your annual usage accurately.

Who Is a Good Candidate for Low Mileage Discounts?

Some groups are especially likely to qualify:

• Retirees: Without a daily commute, retirees typically drive far fewer miles, making them excellent candidates.
• Remote or hybrid workers: If you work from home, your mileage may drop dramatically.
• People who live close to work: Short commutes often qualify for reduced-rate “pleasure use” categories.
• Carpool participants: Sharing rides distributes mileage across multiple vehicles.

Remember, each insurer has its own rules. Some may require participation in a usage-based program to verify your mileage.

What Is a Usage-Based Low Mileage Program?

Usage-based insurance (UBI) programs—also known as telematics programs—allow insurers to measure how you drive, how often you drive, and how many miles you travel. Discounts are then tailored to your exact habits.

Insurers may ask you to attach a plug-in device, install a mobile app, or use built-in vehicle telemetry. These programs typically measure:

• Driving behavior (speed, braking, cornering)
• Number of miles driven
• Time of day (late-night driving is riskier)

Depending on your habits and your insurer, you could save up to 30–50% using a usage-based program.

Popular Usage-Based Programs

• Progressive – Snapshot
• Esurance – DriveSense
• Nationwide – SmartRide
• Liberty Mutual – RightTrack
• State Farm – Drive Safe & Save
• USAA – SafePilot
• GEICO – DriveEasy
• Allstate – Drivewise
• Allstate – Milewise (pay-per-mile)
• Farmers – Signal
• MetLife – My Journey
• American Family – KnowYourDrive
• Safeco – Rewind
• Travelers – IntelliDrive
• Metromile (pay-per-mile)
• Noblr
• Root
• Mile Auto
• Hugo Insurance

FAQs on Low Mileage Discounts

Final Word on Low Mileage Discounts

If you think you’re a good candidate for a low-mileage discount, contact your insurer and ask. Most companies now offer some form of low-mileage or usage-based program. While discount amounts vary, drivers who put limited miles on their vehicle are often eligible for substantial savings.

A quick phone call or app enrollment could reduce your premium—sometimes significantly. If you drive less, you should pay less.