Drivers may not know it, but the amount of miles put on their cars directly affects the sum they pay for their insurance agio. The far and more frequently you drive your cable car, the higher your bounty will be. conversely, lower mileage results in a lower monthly payment. But what constitutes ‘ low mileage, ’ and how much can drivers truly save merely by driving less ? Our team took a deep dive into the world of car policy to provide you with everything you need to know about how mileage affects car insurance rates. This article explores everything from modal vehicular mileage, commuting miles, available discounts and even how COVID-19 has impacted car policy rates in 2020 .

Why am I asked for my annual mileage?

Were you ever in the middle of applying for cable car policy coverage when you suddenly had to make a flying trip to the garage to check your odometer recitation ? It may seem arbitrary, but there ’ s a well reason for why policy carriers ask for your vehicle ’ randomness mileage when you fill out your application : the number of miles on your car immediately affects the policy rate. Some insurance carriers may only request this information once during your initial application process. however, other carriers may request mileage updates throughout the year — particularly if you submit a number that ’ randomness considered below modal. This is besides how policy companies prevent “ indulgent fraud ” from policyholders who fudge the count of miles they drive throughout the year to receive low-mileage discounts.

While there aren ’ t any legal consequences associated with reporting lower miles than you actually have, it can make filing a claim baffling. If you initiate filing a claim with your insurance carrier and an agent sees you ’ rhenium receive discounts for low mileage, they may ask for an annual record of reported mileage. If the numbers don ’ t add up or at least approximately correlate, it could result in a delay or defense of your title .

What are commuting miles and how do they affect my car insurance rates?

many times, indemnity carriers may besides inquire about the count of miles you use to get to work and binding. These are referred to as “ commute miles, ” and indemnity providers can use these numbers to verify the annual mileage you entered during your application process is accurate. Most policy carriers allow up to 20 miles of travel each way for commuting before policy rates begin to increase. For case, if you live in northerly New Jersey and commute 40 miles total each day, you should be able to avoid increases to your insurance bounty. however, central Jersey residents traveling to the like agency in New York may have higher indemnity rates due to the fact that their commute is closely duplicate that of North Jersey drivers .

What is considered low mileage for car insurance?

abject mileage designations are largely determined by department of state laws a well as the specific policies outlined by your car insurance provider. In general, anything less than 12,000 miles per year is considered below average. however, some insurance companies may consider 10,000 miles or less as low annual mileage. Drivers can potentially receive especial discounts if they drive their cars less than what ’ mho considered average. In most cases, the highest discounts are applied to drivers who report an annual mileage between 5,000 and 7,000. however, some policy companies — such as Travelers — offer usage-based policies that provide discounts adenine high as 30 % for drivers using 13,000 miles or less annually. If you ’ re person who drives less than the average person, usage-based programs may be a great way for you to save significantly on your indemnity premium .

What is the average annual miles driven per year?

According to the most recent data from the U.S. Department of Transportation ’ s Federal Highway Administration, the modal person in the United States drives approximately 13,500 miles each year. Despite this reported average, most insurance companies still consider average to be around 12,000 miles. While 1,500 more miles on your fomite might not raise your policy premium by much, it ’ south still a factor to consider when selecting coverage. If you ’ re person who fits into the 13,500 class, it ’ south worth asking potential car indemnity carriers what its brink is for ‘ average ’ mileage to determine the most competitive rates .

How does mileage affect car insurance rates?

mileage directly impacts your cable car insurance rates because your odds of getting into a car accident increase the more you drive the vehicle. Where you live is the ultimate factor in determining how significant your savings will be if you drive less each year. The following states provide the highest discounts to drivers who merely average 2,000 miles or less :

  • California: 27% savings
  • Maryland: 9% savings
  • Pennsylvania: 9% savings
  • Virginia: 9% savings
  • Alabama: 8% savings
  • Kansas: 8% savings
  • Louisiana: 8% savings
  • Massachusetts: 8% savings

however, even drivers that meet the indemnity diligence average of 12,000 miles annually can save compared to those who drive 20,000 miles or more. The states in which the greatest savings can be gained are as follows :

  • California: 20%
  • Missouri: 6%
  • West Virginia: 6%

talk to your insurance mailman to find out what discounts may be available in your region and if you qualify for them based on the sum of miles you drive each class.

Low mileage discounts

If you live in a state where the monetary value savings for low mileage is meaning, you ’ ll want to ensure the depleted mileage deduction is applied to your premium if available and if you qualify. You can do this by calculating your annual mileage manually or with avail from tracking technology, such as telematics devices. once you know how many miles you drive each year, you ’ ll need to contact your insurance provider to have the discount rate applied. After your discount is applied, your carrier may check in with you regularly to receive an update odometer read. You may even be eligible for a usage-based policy, which can further reduce your indemnity premium. In this case, you may be submit to more frequent odometer readings. flush if your carrier doesn ’ t necessitate you to provide update readings throughout the year, you ’ ll need to provide your mileage updates each clock time you renew your policy in order to maintain your dismiss condition. Overall, you can potentially save between 5 % and 25 % on your bounty with a broken mileage discount .

COVID-19’s impact on commuting miles and car insurance

Since the COVID-19 outbreak, many companies have been forced to shut down in-person operations and have employees work from home plate. additionally, many people have lost their jobs all in all and no longer travel equally much as they previously did. For this reason, the Consumer Federation of America and the Center for Economic Justice urged car policy companies to offer premium relief for policyholders. Some companies do not offer premium relief in-full, and in addition, temp low-mileage discounts can be unmanageable to obtain. If you are only temporarily working from home and are expected to return to work within a few weeks or months, it may not be possible for car policy providers to offer a dismiss for such a short menstruation of fourth dimension. While mileage discounts are considered during the initial sale of a policy, it ’ second unmanageable for carriers to compute a discount price for short circuit periods of time. however, if you anticipate that you ’ ll be working from home for a much longer timeframe, it may be worth it to explore low-mileage discounts with your supplier and obtain a new policy. consult with your carrier to understand what options may be available in your region so you can get the easing you need during this critical time .

Usage-based insurance

If you drive systematically below the average annual mileage, usage-based policy programs may be a great choice. Savings through such programs can be much higher since they require more patronize check-ins with your supplier regarding the number of miles you travel. During registration in such programs, drivers will either be given a creature to hook up in their vehicles to mechanically track mileage ( like to safe drive tools used for dependable driving discounts ), or they will need to provide their odometer readings to their providers over the telephone at regularly scheduled intervals. If you know your drive habits are on the gloomy end, this may be a viable choice for you. however, if your driving habits fluctuate, such a platform may not work in your privilege. Usage-based programs normally follow a pre-calculated structure, meaning the odometer readings during each check-in must either match or be below the phone number your insurance carrier calculated from the consequence you chose to join the course of study. If you go over, you may not be able to continue receiving the dismiss. Consult with your carrier to determine the best option based on your driving history .

How to save on your car insurance quote

In summation to lowering your mileage, you can besides find savings by taking advantage of safe driver programs that provide savings based on your driving demeanor. This normally involves installing a instrument that monitors your drive and reports data back to your policy carrier.

You can besides qualify for discounts based on whether or not you hold multiple policies with the same supplier. Multi-policy discounts ( bundles ) combine more than one insurance policy and offer both at a dismiss rate to help policyholders save money. Some insurance carriers besides offer discounts for military members, seniors and full students. Be sure to do your research and find out what discounts your policy carrier offers so you can take advantage and lower your premium .

The takeaway

  • Lower mileage results in a lower car insurance premium.
  • Some insurance carriers offer low-mileage discounts and usage-based programs to help drivers save even more on their coverage.
  • The significance of your low-mileage discount depends on where you live in the United States and which insurance carrier you have.
  • In addition to lowering your mileage, you can save on your car insurance quote by bundling policies, participating in a safe driving program or exploring other available discounts through your provider.


just by driving less, policyholders can save significantly on their annual insurance premiums. In addition to offering customers a lower rate for driving less, some insurance carriers may provide a low-mileage discount rate for their policyholders. If you can ’ t take advantage of low-mileage discounts, you may be able to find savings through dependable driver programs and other savings opportunities offered by your carrier. Always do your research and discuss your options with your supplier so you can secure the best rate for your coverage needs .

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