Do I have to tell my insurance company my mileage?

Your insurer will likely ask for your mileage when you request a quote. Refusing to disclose this or providing false information could prompt the carrier to deny you coverage. You aren’t likely to face any legal repercussions, but providing insurers with false information can lead to higher premiums and greater difficulty finding coverage. While nobody drives the exact same number of miles each year, you should do your best to give your carrier an accurate estimate. If you expect your mileage to change drastically moving forward, say you started a job with a longer commute or purchased a new vehicle, you'll probably want to let your carrier know.

Is insurance cheaper with low mileage?

Insurance can be cheaper with low mileage, particularly if you purchase insurance policies that are usage-based or behavior-based. Drivers who can prove they don’t drive often or practice safe driving behaviors may qualify for discounts. Others can elect to opt into a telematics program that tracks your behavior behind the wheel and rewards you for driving safely. To find out what’s on offer, experts recommend contacting an insurance agent or broker.

What is the best low-mileage car insurance company?

The best low-mileage car insurance company is different for every driver. It will depend on your average annual mileage, as each carrier has its own unique mileage requirements. Another thing to consider is whether you’re comfortable with the insurance company tracking your driving habits. Some companies, like Noblr, track your driving behaviors, such as braking force and speed, and set your rate accordingly. Although it’s hard to get a firm price estimate for pay-per-mile insurance, most low-mileage insurance companies have an online calculator that can help you gauge how much you can expect to pay based on your self-reported mileage. As with regular car insurance, it’s important to do your own research and compare providers using your criteria for what makes a company “the best.” Getting quotes from several companies and asking about discounts can help you identify the most affordable option.

Can I get low-mileage insurance discounts?

Yes, in some cases discounts may be available for those who drive less than the average driver. It's always a good idea to review the discounts your insurer offers each year to ensure you are not missing out on savings. Many common discounts are easy to earn, such as bundling your car and home policies, taking a defensive driving course or remaining claim-free for a certain period of time. If your policy is underwritten by a low-mileage company, such as Metromile or Milewise, you may find a smaller assortment of discounts available, since you are likely to be already earning significant savings just by driving less. Even if your policy is with a mainstream insurer, however, it can be beneficial to ask your agent if there are any savings available for those who drive less than the average.

What coverage can you get with low-mileage car insurance?

With low-mileage car insurance, you can get all the same basic coverage types that a regular policy would include. You can get minimum coverage and full coverage car insurance through a low-mileage policy, plus optional endorsements, depending on the carrier. For example, Metromile offers rental car coverage and roadside assistance as add-ons for a fee. Lemonade offers roadside assistance for free with every policy, which can help cover the cost of towing, flat tire changes, fuel delivery and more. While endorsements may be available, most low-mileage insurance carriers offer fewer endorsements than standard providers. If you want specific coverage, like accident forgiveness or new car replacement coverage, you may need to pay more for a regular car insurance policy.

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Car insurance for low-mileage drivers

Written by

AJ Dellinger

Edited by

Lisa McArdle

Edited by

Lisa McArdle

Updated Jul 30, 2024

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What is considered low mileage for car insurance?

Generally speaking, a low-mileage driver is someone who drives infrequently or drives under a specific number of miles each year. But for insurance purposes, the definition of a low-mileage driver will vary depending on the company. If you put fewer than 10,000 miles a year on your vehicle and aren’t taking advantage of car insurance for low-mileage drivers, you might be overpaying for coverage. Understanding what is considered low mileage for insurance may help you identify whether you could save with low-mileage coverage.

Although the overall driving rate in the U.S. does not appear to be declining dramatically, it is clear that certain groups are increasingly finding alternatives to frequent driving. These include the growing number of remote workers, urban dwellers who rely more on ridesharing services, stay-at-home parents and retirees.

Depending upon actual mileage driven annually, members of these groups may benefit substantially from a mileage-based premium insurance policy. Keep in mind that actual rates may vary depending on your true mileage, the insurance company chosen, the specifics of your low-mileage driving policy and discounts, among other factors.

How to save on car insurance as a low-mileage driver

When it comes to car insurance for low-mileage drivers, many of the best car insurance companies offer discounts for policyholders who drive less than the standard customer. Car insurers assume that those who are on the roads less often will not be as likely to have accidents. More recently, mileage- and usage-based policies have been specifically created with low-mileage drivers in mind to reward their infrequent driving and share special low-mileage insurance discounts.

Low-mileage drivers can save in a number of ways:

Low-mileage discounts: This is a traditional approach to reduce premiums by a percentage for driving less than a certain amount of miles. Often, the driver commits to reporting their miles driven with proof in the form of an odometer reading.
Usage-based discounts: This is a more recent technique to measure both mileage and safe driving habits through telematics, which uses GPS and other technology to track driving distance and behavior. For example, discounts may be based on driving during non-peak traffic hours, which are generally deemed safer, or by braking and accelerating gently.
Mileage-based policies: With this option, a driver’s miles can be measured with an app and premiums can be based on a modest base price plus an additional amount for every mile driven.

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Car insurance companies for low-mileage drivers

If you consider yourself a low-mileage driver and do not expect to use your car for long trips over a period of time, it may be worth obtaining quotes for mileage-based car insurance. Additionally, if you are a safe driver, some insurers offer the opportunity to reduce your rates by measuring your current safe driving patterns and habits.

Typically, mileage-based insurance will set a fixed base rate determined from typical factors like age (except in Hawaii or Massachusetts), driving history and the vehicle driven. Above this, you will be charged a certain amount for each mile driven and measured through an insurer-provided device or smartphone app. Listed below are examples of car insurance companies that are making an impact in this market, but keep in mind that availability may be limited in some states. The best way to know if you qualify is to request a quote, many of which can be submitted quickly on a company’s website.

Root was one of the first car insurance companies in the U.S. to be fully app-based. The app tracks both the number of miles driven and driving habits in order to set your premium. As such, premiums will vary from month to month, although Root does have a test-drive period to help you gauge how much your premium might be. Driving safely and avoiding hard braking and rapid acceleration can help keep premiums low, but you run the risk of being charged higher premiums if poor driving patterns are detected. For these reasons, the driver largely controls the premiums.

Metromile, a division of Lemonade Insurance, is primarily a pay-per-mile auto insurance company. In all but a few of the states it serves, Metromile only collects data on how much you are driving. However, in Arizona, Illinois, Oregon and Virginia, the company also collects data on driving behavior like average speed and time of day. In those states where Metromile focuses purely on mileage and not driving behaviors, there are two components to the monthly premium. The base rate is quoted using traditional underwriting principles looking at driving history and other factors. The second component is tied directly to the number of miles you drive, which are measured by a company-provided device. Metromile is also unique from other low-mileage insurance companies in that the per-mile rate applies to the first 250 miles each day, or 150 miles for New Jersey drivers. After that, the additional miles are free of charge.

MileAuto is one of the newest companies in the mileage-based insurance business. It is similar in approach to Metromile in setting a base premium using traditional underwriting standards. The premium is then adjusted monthly based on the number of miles driven. MileAuto is unique in that it does not employ a telematics device or mobile app. Instead, drivers are reminded monthly via email and text to take a photo of their odometer. Although this could be an additional task every month, it could be ideal for drivers who may have privacy concerns over other more intrusive data collection methods.

Milewise is a pay-per-mile-based insurance policy, but brings with it the resources and credibility of a well-known traditional insurer through Allstate. Also using a plug-in device, Milewise measures driving miles as well as behaviors. These, in turn, set the fluctuating monthly rate, which combined with a traditional base rate, sets the premiums. With a feedback loop on its app, Milewise also provides an opportunity for the insured to improve driving habits.

Like others above, Noblr assesses driving habits and miles via its mobile app and uses the data to set monthly premiums. However, Noblr goes beyond this and looks at certain unique patterns in driving behavior other than the number of miles or braking habits. For example, Noblr assesses risk by also reviewing the driver’s road choices and monitoring cellular phone usage to measure, and hopefully discourage, texting and driving. It also tracks the time of day you drive and road choices, such as highway or street, but keep in mind that rating factors can vary by state regulations. Noblr is owned by USAA and is only available to USAA members. Only active-duty and retired military, as well as their qualifying family members, are eligible.

Although currently only available in Arizona, Illinois, Ohio, Oregon, Tennessee, Texas and Washington, Lemonade now provides car insurance to drivers with a focus on personalization. Like some of the other companies on this list, Lemonade also uses telematics data collected through its mobile app to track drivers’ mileage and driving habits and set their insurance rates. There are also additional discounts for low-mileage and safe drivers.

Pay-per-mile vs. usage-based insurance

Although these two types of car insurance sound similar and can benefit low-mileage drivers, they are slightly different. Both options come with trade-offs that a driver must consider when choosing car insurance coverage that utilizes telematics.

What is pay-per-mile insurance?

With pay-per-mile insurance, drivers are charged a base rate plus a per-mile rate to determine their monthly premium.

Who it may be good for:

May be a great fit for drivers who rarely drive and/or drive far less than the national average
People seeking a cheaper car insurance option

Who it may not be good for:

People who are worried about data collection and other potential privacy concerns that are required to opt into a telematics insurance program
People who drive an older vehicle that may not be eligible for such a program

What is usage-based insurance?

With usage-based insurance, the insurance company may use a telematics device or your phone to track driving habits and mileage. It takes into account driving history, distance traveled and other factors.

Who it may be good for:

May benefit drivers regardless of annual mileage
People looking to receive a discount for good driving behaviors

Who it may not be good for:

People who have privacy concerns regarding tracking technology
People with a history of reckless driving or other risky behavior

Frequently asked questions

Your insurer will likely ask for your mileage when you request a quote. Refusing to disclose this or providing false information could prompt the carrier to deny you coverage. You aren’t likely to face any legal repercussions, but providing insurers with false information can lead to higher premiums and greater difficulty finding coverage. While nobody drives the exact same number of miles each year, you should do your best to give your carrier an accurate estimate. If you expect your mileage to change drastically moving forward, say you started a job with a longer commute or purchased a new vehicle, you'll probably want to let your carrier know.
Insurance can be cheaper with low mileage, particularly if you purchase insurance policies that are usage-based or behavior-based. Drivers who can prove they don’t drive often or practice safe driving behaviors may qualify for discounts. Others can elect to opt into a telematics program that tracks your behavior behind the wheel and rewards you for driving safely. To find out what’s on offer, experts recommend contacting an insurance agent or broker.
The best low-mileage car insurance company is different for every driver. It will depend on your average annual mileage, as each carrier has its own unique mileage requirements. Another thing to consider is whether you’re comfortable with the insurance company tracking your driving habits. Some companies, like Noblr, track your driving behaviors, such as braking force and speed, and set your rate accordingly.

Although it’s hard to get a firm price estimate for pay-per-mile insurance, most low-mileage insurance companies have an online calculator that can help you gauge how much you can expect to pay based on your self-reported mileage.

As with regular car insurance, it’s important to do your own research and compare providers using your criteria for what makes a company “the best.” Getting quotes from several companies and asking about discounts can help you identify the most affordable option.
Yes, in some cases discounts may be available for those who drive less than the average driver. It's always a good idea to review the discounts your insurer offers each year to ensure you are not missing out on savings. Many common discounts are easy to earn, such as bundling your car and home policies, taking a defensive driving course or remaining claim-free for a certain period of time.

If your policy is underwritten by a low-mileage company, such as Metromile or Milewise, you may find a smaller assortment of discounts available, since you are likely to be already earning significant savings just by driving less. Even if your policy is with a mainstream insurer, however, it can be beneficial to ask your agent if there are any savings available for those who drive less than the average.
With low-mileage car insurance, you can get all the same basic coverage types that a regular policy would include. You can get minimum coverage and full coverage car insurance through a low-mileage policy, plus optional endorsements, depending on the carrier.

For example, Metromile offers rental car coverage and roadside assistance as add-ons for a fee. Lemonade offers roadside assistance for free with every policy, which can help cover the cost of towing, flat tire changes, fuel delivery and more.

While endorsements may be available, most low-mileage insurance carriers offer fewer endorsements than standard providers. If you want specific coverage, like accident forgiveness or new car replacement coverage, you may need to pay more for a regular car insurance policy.