Low-mileage discounts tend to be relatively minor, so they are n’t the best room to save on premiums . State Farm offers the best low-mileage discount, but GEICO remains the cheapest overall . Shopping around and comparing quotes is a more effective way to save money than securing this discount. Loading …
What Is Low-Mileage Car Insurance and Who Qualifies?
For those looking for the cheapest car policy for low-mileage drivers, there are two types of policies to consider :
- Traditional Low-Mileage Discount: Offered by most insurance companies, this discount offers reduced rates for driving fewer miles. Typically, people who drive less than 7,500 miles per year or 10 miles or less per workday are eligible for this discount.
- Pay-Per-Mile Insurance: Some insurance companies offer plans that track your mileage and determine your rate based on the exact number of miles driven in a given period. This type of policy isn’t available in every state and comes with a loss of privacy, which means that it might work for some people, but it may not be the best option for everyone.
Traditional Low-Mileage Car Insurance Discounts
What is considered broken mileage per year ? Generally speaking, most companies that use annual mileage to determine your rates tend to break mileage down into three categories :
- Low mileage: Less than 7,500 miles per year or 10 miles per day
- Average mileage: 7,500–15,000 miles per year or 20 miles per day
- High mileage: 15,000+ miles per year or 40 miles per day
Compared to average-mileage drivers, low-mileage drivers save $ 56 per year on cable car indemnity, on average.
Pay-Per-Mile Car Insurance
Pay-per-mile cable car indemnity is a system that calculates your accurate mileage and determines your rates based on how often you drive. This character of program is relatively newfangled, but these plans are becoming more coarse thanks to earphone apps and tracking devices. Some newer companies entirely use this system to determine their rates. According to our research, drivers need to travel less than 26 miles per workweek for a pay-per-mile plan to be cheaper than a traditional policy. Because respective factors determine your rates, getting a shrink rate for driving fewer miles may not be the most effective way to lower your car indemnity rates significantly.
Best Cheap Companies for Low-Mileage Car Insurance
GEICO offers the best car policy for low-mileage drivers at an average rate of $ 982 per class. The company with the largest deduction for low-mileage insurance is State Farm. They offer a discount rate of $ 115, bringing their average low-mileage premium to $ 1,092 per class — still $ 110 more than GEICO ’ second rate. just because a company offers a discount rate for a low-mileage plan doesn ’ t mean they have the lowest rate. Comparing quotes and choosing the most low-cost design can save you more money than choosing the company with the best dismiss for low-mileage car indemnity. USAA technically has the lowest rate for low-mileage policy. however, because their coverage is only available to military members and their families, they aren ’ thymine included in our calculations.
Cheapest Car Insurance Companies for Low-Mileage Drivers
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- ship’s company Low-Mileage Annual premium modal Mileage Annual Premium Savings
- State Farm
GEICO GEICO is the cheapest option for low-mileage coverage. MoneyGeek ranks them among the best car insurance options in about every state of matter because of their gloomy rates and easy-to-use on-line tools.
Best Cheap Companies for Pay-Per-Mile Car Insurance
Most car insurance policies factor in mileage when determining rates, but some policies offer a pay-per-mile pace. According to our research, Nationwide offers the best pay-per-mile indemnity policy. many insurance companies besides offer discounts for using apps that track your driving behavior. These programs reward people for driving well, even if they aren ’ deoxythymidine monophosphate on the road any less. however, keep in mind that behavior-based programs require you to allow your policy company to track you on the road. As such, drivers who have privacy concerns may not be matter to in this type of deduction.
Who Should Get Low-Mileage Car Insurance?
If you drive less than 7,500 miles per class, ask your indemnity company if they offer a low-mileage rebate. Be mindful that maximal mileage requirements are different for each party, so you may qualify for a deduction with some indemnity companies but not others. Pay-per-mile insurance is another choice to help keep your rates humble. however, MoneyGeek ’ s findings indicate that you ’ ll have to drive less than 26 miles per week to see significant savings . MONEYGEEK EXPERT TIP on-line quotes are estimates, so your specific rates may be higher or lower than a sample distribution quote reflects. Talk to an insurance agent or early spokesperson to ensure all eligible discounts are applied to your premium, including discounts for low mileage. While taking advantage of a low-mileage discount can save you some money, there are more effective ways to reduce your car policy premiums and find the cheapest coverage options. Comparing quotes to make sure you have the lowest possible rate, cleaning up your drive commemorate, improving your credit score and bundling your insurance policies can all help you save. If you don ’ t have any loans on your vehicle and you can afford to replace it out of pouch, carrying liability-only coverage can help you reduce your overall indemnity costs.
How to Get Low-Mileage Car Insurance
Low-mileage discounts can help you save money, but they aren ’ triiodothyronine automatically given to you by your insurance company. To get low-mileage car insurance, you need to understand whether or not you qualify and actively seek a discount by following these steps. 1
Calculate Your Current Annual Mileage
Set your car ‘s odometer to zero and wait one week. After one week, take note of the number of miles you ‘ve driven. Multiply that name by 52 to get an theme of your annual mileage. 2
Reduce Your Mileage, if Possible
If you drive more than 7,500 miles annually, decide if it is potential to reduce your overall mileage by carpooling to work, walking to the storehouse, or finding other ways to reduce your mileage. 3
Reach Out to Your Insurance Company
Check with your insurance company and get quotes from others to see if you qualify for a low-mileage dismiss. 4
See if You’d Benefit From Pay-Per-Mile Insurance
If you drive less than 26 miles per week, you could benefit from a pay-per-mile insurance program.
MoneyGeek uses a sample driver profile to determine average insurance rates. Our standard driver is a 40-year-old male with a clean repel record, full coverage and liability levels of 100/300/100 with a $ 1,000 deductible. About the generator Rachael Brennan is a professional finance writer and licensed insurance agent. She has worked in the insurance industry for more than a decade, earning her P & C license in all 50 states and her life sentence, health and AD & D license in New York and the surrounding states. Rachael has worked for well-known companies such as twenty-first Century Insurance and BlueCross BlueShield and was the unitarian Universalist Association ( UUA ) insurance plans coordinator for three years. She specializes in place, fatal accident, health, life, accidental death and disability insurance. Rachael earned her bachelor of science academic degree in communications from Texas A & M University-Commerce. Rachael combines her writing background with her policy and personal finance experience to share practical cognition and help oneself people make informed fiscal decisions.