Car Insurance Discounts for Low Mileage: How You Can Save Big

If you’re someone who spends more time at home than on the road, you might be eligible for a low-mileage discount on your car insurance. After all, the less you drive, the less risk you pose to your insurer. In this article, we’ll dive into how low-mileage discounts work, who can benefit from them, and how you can maximize your savings.

Let’s be honest—no one likes paying for car insurance, but getting a discount for driving less is one way to reduce your monthly expenses without sacrificing coverage.

What is a Low-Mileage Discount?

A low-mileage discount is exactly what it sounds like: a reduction in your car insurance premium for driving fewer miles. Insurers see lower mileage as a sign of lower risk. After all, the less you drive, the fewer chances you have of getting into an accident.

Think of it like this: If you only occasionally drive your car, it’s not exposed to the same risks as someone who’s on the road every day, commuting long distances. By offering this discount, insurers reward responsible drivers who don’t contribute to wear and tear as much as their higher-mileage counterparts.

How Does Low-Mileage Discount Work?

Car insurance companies have different criteria for what qualifies as “low mileage,” but generally, they’ll offer discounts to drivers who log fewer than 7,500 to 10,000 miles per year. This might seem like a lot, but if you mostly drive for short trips or don’t commute to work, you might be well within the range for a discount.

Here’s how insurers typically calculate it:

Track your mileage: Many insurers will ask you to provide your average mileage during the policy period. They may base the discount on how much you drive in a typical year.
Use telematics or tracking devices: Some companies offer telematics programs where they track your driving behavior (speed, braking habits, and mileage) through a smartphone app or a device installed in your car. This gives insurers real-time data on your driving habits, and if you meet the low-mileage criteria, you can get a discount.
Provide annual mileage estimates: If you don’t have a telematics program, you might simply be asked to provide your estimated mileage for the upcoming year. Be sure to keep track of how many miles you actually drive so you can provide accurate information during renewal.

Who Can Benefit from a Low-Mileage Discount?

If you’re working from home, retired, or only use your car for occasional errands, you’re in a good position to take advantage of this discount. Here’s a closer look at the types of drivers who can benefit the most:

Commuters with alternative transportation: If you use public transportation or work from home, you likely don’t drive as often. This makes you a prime candidate for a low-mileage discount.
Retirees: If you’ve retired and no longer have a daily commute, your mileage may have drastically dropped, making you eligible for a discount.
Seasonal drivers: People who only drive in certain seasons (like snowbirds or those who keep their cars in storage during the winter) could also qualify for a low-mileage discount, especially if they have a clear pattern of infrequent driving.
College students: Students who leave their cars parked while they’re away at school might drive less than 7,500 miles a year, which can make them eligible for the discount.

How Much Can You Save with a Low-Mileage Discount?

The savings vary depending on the insurer and how much you actually drive, but in general, you can expect to save up to 20% off your annual premium. This could add up to hundreds of dollars over the course of a year.

For example, if your annual premium is $1,200, a 10% discount would save you $120 annually. If you qualify for a larger discount, say 20%, you could save $240—all for the simple reason that you’re driving less.

Tips for Maximizing Your Low-Mileage Discount

Track your mileage: If you’re not using telematics, keep a record of your miles. There are apps and mileage trackers that make it easy to monitor your driving distance, so you can confidently report it when asked by your insurer.
Ask your insurer about available discounts: Not all insurance companies automatically apply a low-mileage discount. Some might require you to request it or prove your mileage. So, don’t hesitate to reach out to your insurer to ask if you qualify.
Consider telematics-based programs: If your insurer offers a pay-per-mile or usage-based insurance program, it’s worth exploring. These programs charge you based on the miles you drive, potentially offering more substantial savings if you’re a low-mileage driver.
Renew early or adjust your policy: If your mileage decreases significantly over time, be sure to notify your insurer during your policy renewal or mid-term. They may offer an updated rate based on your new driving habits.
Compare quotes: Not all insurers offer the same discounts or have the same low-mileage criteria. By shopping around and comparing quotes, you can find the best deal based on your driving habits.

Other Discounts for Low-Mileage Drivers

Low-mileage drivers may also be eligible for additional discounts that can further reduce their premium. These may include:

Good driver discounts: If you have a clean driving record with no accidents or claims, insurers may reward you with a lower premium.
Bundling discounts: If you have multiple policies with the same insurer (like home and auto), you can often bundle them for a discount.
Safety feature discounts: Cars with safety features like anti-lock brakes, airbags, and collision avoidance systems may qualify for discounts, further lowering your premium.

Final Thoughts: Is the Low-Mileage Discount Worth It?

If you’re a low-mileage driver, taking advantage of a low-mileage discount is a smart way to reduce your car insurance premium without sacrificing coverage. Whether you’re working from home, driving less because of public transport, or simply not on the road as often, insurers recognize the reduced risk and will reward you with a discount.

Remember to track your mileage accurately, check with your insurer for eligibility, and explore telematics options if available. These small steps could lead to big savings, and the best part is—you’re already doing one of the things insurers love: driving less!

So, take a moment to check with your insurer and see how much you could save. It’s a simple way to make sure you’re paying the right price for the coverage you need.