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Low mileage discount programs reward drivers who spend less time on the road. If you drive fewer than 7,500 miles per year, you could save between 5% and 25% on your auto insurance premiums. The average American drives roughly 13,500 miles annually, according to the What Is a Low Mileage Discount and Who Qualifies?
A low mileage discount is a rate reduction offered by most major auto insurers. It applies to drivers who log fewer miles than the national average. The Insurance Information Institute (III) lists low mileage as one of the key discounts every driver should ask about. Fewer miles driven means less time exposed to accident risk. Insurers reward that lower risk with reduced premiums. Typically, you need to drive fewer than 7,500 miles per year to qualify. Some companies set the bar at 5,000 or 10,000 miles. The National Association of Insurance Commissioners (NAIC) notes that not all states offer every discount. For example, carpoolers and public transit users often meet the mileage threshold automatically. In most cases, your insurer will ask for an annual mileage estimate when you apply or renew your policy. There are no age restrictions on the low mileage discount. Drivers of all ages can qualify. You simply need to demonstrate that your annual driving falls below your insurer’s cutoff. Some companies verify mileage through odometer readings, telematics devices, or vehicle inspection reports. Savings vary by insurer, location, and how few miles you drive. However, industry data shows meaningful reductions across the board. State Farm offers roughly 12% to 25% off for drivers under 7,000 miles per year. That translates to $350 to $650 in annual savings on a typical $2,500 policy. GEICO offers some of the cheapest rates for low mileage drivers, averaging around $1,223 per year. The table below compares average annual premiums for low mileage versus high mileage drivers.How Much Can You Save With a Low Mileage Discount?
| Driver Type | Average Annual Premium | Difference |
|---|---|---|
| Low mileage (under 7,500 mi/yr) | $2,388 | — |
| High mileage (over 15,000 mi/yr) | $2,524 | +$136 |
| Very low mileage (under 5,000 mi/yr) | Varies | Up to 25% savings |
For drivers who rarely use their cars, pay-per-mile insurance is another option. Nationwide SmartMiles charges a base rate plus roughly $0.05 to $0.12 per mile driven. This program is available in 40 states. As a result, someone driving only 3,000 miles per year could pay far less than a traditional policy. Pay-per-mile plans work differently than a standard low mileage discount, but the goal is the same: lower costs for less driving.
How to Get the Best Low Mileage Discount on Your Policy
Start by contacting your current insurer. Ask specifically about their low mileage discount thresholds. Many drivers qualify without realizing it. For example, if you work from home three or more days per week, your annual mileage may already be below 7,500 miles. Keep track of your odometer readings at the start and end of each year to have accurate numbers ready.
Compare quotes from at least three insurers. Each company sets its own mileage thresholds and discount percentages. In most cases, you will find significant differences. Some insurers offer a flat percentage off. Others use tiered pricing based on exact mileage. The III recommends reviewing your policy annually to ensure you are receiving every discount you qualify for.
Consider using a telematics device or app if your insurer offers one. These tools track your actual miles driven. They provide verified data that can unlock larger discounts. Typically, there is no cost for the device itself. You simply plug it into your vehicle’s diagnostic port. The data removes any guesswork from your mileage estimate and may help you qualify for additional safe driving discounts on top of the low mileage discount.
Frequently Asked Questions
How many miles per year do I need to drive to get a low mileage discount?
Most insurers require you to drive fewer than 7,500 miles per year. However, some companies set the threshold at 5,000 or 10,000 miles. Check with your specific insurer, as requirements vary by company and state.
Can I get a low mileage discount if I work from home?
Yes. Remote workers are among the most common recipients of this discount. In most cases, working from home significantly reduces your annual mileage. Typically, you just need to report your estimated annual miles when you renew your policy.
Is a low mileage discount the same as pay-per-mile insurance?
No, they are different. A low mileage discount is a percentage reduction on a standard policy. Pay-per-mile insurance charges a base rate plus a per-mile fee. However, both options help low mileage drivers save money. For example, pay-per-mile may save more if you drive under 5,000 miles per year.
Compare Insurance Rates
Ready to see if you could be paying less? Compare quotes from top insurers in your area. Getting multiple quotes is the most effective way to find a better rate.
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Official Sources & Resources
For verified information on auto insurance regulations and consumer protection:
- NAIC (National Association of Insurance Commissioners): naic.org
- Insurance Information Institute: iii.org
- Federal Trade Commission — Auto Insurance: consumer.ftc.gov
- USA.gov — Car Insurance: usa.gov/car-insurance
Content last reviewed April 2026. If you notice any outdated information, please contact us.