10 Best Companies for Low-Mileage Car Insurance Discounts in 2024

Best for Low-Mileage Discounts: Farmers

2,903 reviews

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4.0

Company Facts

Low-Mileage Full Coverage

$58/mo

A.M. Best Rating

A

Complaint Level

Low

Pros & Cons

• Excellent selection of discounts
• Variety of policy customization options
• Superior rating from A.M. Best for financial stability

• No gap insurance
• Rates are higher than the national average for most drivers

» Farmers Car Insurance Review

2,903 reviews

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Best for Usage-Based Discounts: Allstate

11,413 reviews

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3.8

Company Facts

Low-Mileage Full Coverage

$63/mo

A.M. Best Rating

A+

Complaint Level

Med

Pros & Cons

• Competitive rates starting at $59/month
• Liability, collision, and comprehensive coverage
• Accident forgiveness, safe driving, and deductible rewards

• Premiums may be higher than some competitors
• Mixed reviews, with some complaints about claim denials

» Allstate Car Insurance Review

11,413 reviews

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Best for Low-Mileage Programs: Geico

19,116 reviews

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4.5

Company Facts

Low-Mileage Full Coverage

$56/mo

A.M. Best Rating

A++

Complaint Level

Low

Pros & Cons

• Affordable rates
• A++ rating from A.M. Best
• Good claims handling
• Extensive online tools
• Offers accident forgiveness

• Doesn’t have gap insurance
• Few in-person agents
• Limited coverage options for high-risk drivers

» Geico Car Insurance Review

19,116 reviews

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The best companies for low-mileage car insurance discounts are Farmers, closely followed by Allstate and Geico, as identified by industry experts. These companies offer competitive rates and a variety of discounts tailored to drivers who don’t drive many miles each year.

In this comprehensive guide, we delve into the realm of smart spending, exploring the benefits of low-mileage discounts and providing insights into the best companies for affordable premiums, including Farmers, Allstate, and Geico. Enter your ZIP code  in our free tool to start seeing quotes today

Our Top 10 Picks: Best Companies for Low-Mileage Car Insurance Discounts

Company	Rank	Low-Mileage Discount	A.M. Best	Best For	Jump to Pros/Cons
	#1	14%	A	Flexible Discounts	Farmers
	#2	12%	A+	Usage-Based Discounts	Allstate
	#3	16%	A++	Low-Mileage Programs	Geico
	#4	13%	A+	Pay-Per-Mile Discounts	Nationwide
	#5	18%	A+	Reduced Usage	Progressive
	#6	15%	A	Telematics Discounts	American Family
	#7	11%	A+	Mileage-Based Savings	Erie
	#8	17%	A++	Mileage Verification	State Farm
	#9	10%	A	Mileage Tracking	Liberty Mutual
	#10	20%	A++	Low-Mileage Programs	Travelers

With a focus on promoting safer driving habits and unlocking unbeatable savings, this article equips readers with the knowledge to make informed coverage choices and secure cost-effective car insurance

#1 – Farmers: Top Overall Pick

Pros:

• Substantial Savings: Average savings of $745 on Auto and Home insurance policies. Take a look at our Farmers insurance company review to learn more.
• Convenient Mobile App: Easily manage policies anytime, anywhere with the redesigned Farmers® Mobile App.
• Valuable Coverage Insights: Get expert advice on ensuring coverage for valuables like jewelry and collectibles.

Cons:

• Limited Signal Availability: Signal® program is not available in some regions of the US.
• State-Specific Restrictions: Some products, coverages, features, and discounts may not be available in every state, potentially limiting options for certain customers.

#2 – Allstate Insurance: Best for Usage-Based Discounts Expert

#3 – Geico: Best for Low Mileage Programs Dealer

Pros:

• Discounts Galore: Geico offers a wide array of discounts, ensuring potential savings for customers across various policies. For more information, check out  Geico Auto Insurance review. 
• Convenient Accessibility: With user-friendly online tools and helpful agents just a call away, managing policies and making changes is a breeze.
• Comprehensive Coverage: From auto to property to business insurance, Geico provides a diverse range of coverage options to suit different needs.

Cons:

• Limited Language Support: Some residents, like those in Colorado, may experience temporary limitations in accessing services in languages other than English.
• Minor Privacy Concerns: When redirected to partner sites, customers should be aware of potential differences in privacy practices, though this is typically not a significant issue.

#4 – Nationwide: Best for Pay-Per-Mile Discounts Professional

#5 – Progressive: Best for Reduced Usage Expert

Pros:

• Flexible Repair Options: Progressive offers the choice between network repair shops or any shop of your preference, ensuring convenience for policyholders.
• Efficient Claims Process: With the Photo Estimate feature, skip in-person inspections and receive quick estimates, streamlining the claims process. Our complete Progressive review  goes over this in more detail.
• 24/7 Accessibility: Policyholders can report or view claims at any time, offering convenience and peace of mind.

Cons:

• Limited Repair Guarantees: While repairs at network shops are guaranteed, using other shops may lack this assurance, potentially affecting repair quality.
• Dependency on Mobile App: The Photo Estimate feature is reliant on the Progressive Mobile App, which may pose accessibility issues for some users.

#6 – American Family: Best for Telematics Discount Dealer

Pros:

• Versatile Coverage: Offers a wide range of insurance options, including vehicle, property, personal, and commercial.
• Bundle Discounts: Save money by bundling multiple policies together. Discover more: AmFam Insurance review
• Easy Online Quotes: Conveniently start your insurance quote online, simplifying the process.

Cons:

• Limited Specialization: Might not cater to specialized insurance needs due to a focus on mainstream coverage.
• Potential Lack of Customization: Bundle savings may come at the expense of tailored coverage options.

#7 – Erie: Mileage-Best for Based Savings Agent

Pros:

• High Customer Retention: Over 90% of customers stay with Erie year after year, indicating satisfaction and trust. For more information:  Erie car insurance review.
• Financial Strength: Erie holds an A+ rating from A.M. Best, ensuring reliability and stability in insurance coverage.
• Diversity & Inclusion Commitment: Erie fosters an atmosphere of mutual respect and actively promotes diversity and inclusion.

Cons:

• Limited Information Accessibility: The website lacks detailed information on specific insurance products and coverage options.
• Absence of Online Quoting: There’s no provision for obtaining instant quotes online, potentially leading to inconvenience for customers seeking quick estimates.

#8 – State Farm: Best for Mileage Verification Specialist

#9 – Liberty Mutual: Best for Mileage Tracking Guru

#10 – Travelers: Best for Low Mileage Programs Merchant

Car Insurance With Low-Mileage Discounts: Monthly Rates by Coverage Level & Provider

Driving fewer miles makes those drivers less of a risk. The lower you fall on the list of high-risk factors, the less you pay for insurance.

This table shows the best low-mileage car insurance companies that offer a range of features designed to provide cost-effective coverage and peace of mind. Let’s explore some of the standout providers and their distinct offerings, highlighting the benefits that make them stand out in the market.

Most companies offer one of two different categories when comparing rates, which is why it’s imperative you learn the difference between low-mileage car insurance discounts and usage-based mileage discounts while you’re comparing premiums.

Understanding Low-Mileage Discounts

Low-mileage discounts are offered to drivers who don’t drive many miles each year.

There is no real rule as to how and when you can drive all your allotted miles throughout the year. You just can’t exceed a certain number of miles each time your policy is renewed if you want to qualify for this discount.

The amount of the discount differs based on the insurance company that offers the discount, which means you’ll want to ask what percentage or dollar amount the discount is when you’re shopping for insurance.

The premise is simple. You and your insurance provider will discuss the number of miles you drive each year.

The negotiation process works much like a leased vehicle purchase. As long as you keep your annual mileage under the approximate 12,000 miles per year, you don’t pay any fees with a lease.

If you keep your mileage at or below the number you discussed with your provider, you get a discount on your premium. You can drive all those miles in one month and never drive again the rest of the year, or you can disperse them equally throughout the year. It’s your choice.

Explaining Usage-Based Mileage Discounts

Usage-based mileage discounts are a little different in the eyes of different insurance providers. Rather than providing you with a discount based on how few miles you drive, your provider gives you a discount based on how many miles you drive each day, week, month, and year.

Not all companies offer usage-based insurance, but some do. You can get this discount if you are willing to drive with a device in your vehicle that monitors your habits.

When the device reports you driving very little to the insurance company, you’re given a discount on your insurance policy.

It’s different from the low-mileage discount because you’re getting this discount each month rather than it being immediately tacked onto your premium for the year. There’s a downfall to this form of savings, too.

These devices not only monitor the number of miles you drive for a discount, but they also monitor the following:

• Driving speeds
• Braking speeds

If the device decides you brake too hard or drive too far, your insurance provider has the right to raise your premium that month.

While a usage-based insurance program is not quite the same thing as a low-mileage discount, it is a discount for people who do drive fewer miles. It’s known as a pay-as-you-go policy, and it often allows you to drive anywhere from 12 to 40 miles per day depending on the company you work with.

Be sure to ask about the number of miles you’re permitted to drive each day if you want this discount.

Drivers Who Will Save the Most Money

Low-mileage car insurance offers opportunities for certain demographics to capitalize on reduced premiums by driving fewer miles. Retired individuals, who generally have lower driving needs, can leverage this type of insurance, often benefiting from additional discounts tailored for retirees. Similarly, those who reside and work in downtown areas or close to their workplace stand to gain from their minimal commute distances, aligning well with the advantages provided by low-mileage car insurance policies.

Work-from-home employees and/or business owners also take advantage of discounts like this when they have the opportunity.

It’s easy to get a discount when you’re at home all day for work and for your home life, and it’s becoming easier each time supermarkets and major retailers offer faster shipping and delivery services to people at home. It means less time spent in the car and more money. Enjoy the benefits of a low mileage discount on car insurance as you spend more time at home, saving both time and money with convenient delivery services.

Assessing the Worth of a Low-Mileage Discount

It’s the question many drivers ask. There’s no right answer, but there are some considerations. If you truly drive fewer than the miles allotted each day by the insurance company you choose to purchase a policy with, you can save significantly. If you push it close to that mileage, you risk going over and paying a lot more for that overage than you would to just avoid the low-mileage discount completely.

If you decide on the pay-as-you-go option and have your mileage recorded through the use of a device, it’s imperative you remember every move you make in the car is recorded. If you are late twice in one week and tend to drive a little fast those days or brake hard those days, you appear to be a bad driver. Your rates could go up, and it’s all for nothing.

Learn More: Explaining Pay-As-You-Go Car Insurance

Ways to Get Low Mileage Car Insurance Discounts

Securing a discount on low mileage car insurance is as simple as initiating a conversation with your insurance provider or agent, whether you’re enrolling in a new policy or exploring options within your existing coverage. This discount may apply particularly to used vehicles with mileage below 100,000 miles, depending on the insurer’s criteria. Finding a car insurance company that offers a low mileage discount is easy, especially if you get your quotes online. While you can easily find out which companies have this program, you might not always be able to tell if you qualify initially.

Companies such as Progressive have an online car insurance quote system that lists each program and vehicle feature that is helping to save you money right on the screen. Ultimately, shopping around and comparing rates is your best bet for getting the low mileage car insurance discount.

Discover Extra Discounts While Shopping for Auto Insurance

The best way to save with a policy like this is to look around and compare more than just the premium when shopping for a policy. Sometimes it’s not the lowest dollar amount that equates to the biggest savings. Sometimes the discount is a little smaller, but the miles are a little more lenient. Once you find a policy that works for you, go ahead and keep track of your miles and enjoy that discount. If you don’t qualify for this type of discount thanks to your driving habits, there are other ways to save money on your car insurance.