How to Get Cheap Car Insurance for Low-Mileage Drivers

Do you drive less than the average person? If so, you might be wondering how to get cheap car insurance for your needs and budget. According to a 2021 analysis by Bankrate1, drivers who drive less than 6,000 miles per year pay an average of $1,787 per year for full coverage car insurance, while drivers who drive more than 12,000 miles per year pay an average of $2,178 per year. That means you could save up to $391 per year by driving less.

But what are low-mileage drivers and why are they eligible for cheaper car insurance? In this article, we will explain how driving less affects your car insurance rates, how to find the best car insurance for low-mileage drivers, how to qualify for and maintain low-mileage discounts, and how to manage your policy.

How driving less affects car insurance rates

Car insurance is a type of financial protection that covers you and your vehicle in case of an accident, theft, vandalism, or other damages. It can also cover your medical expenses, legal fees, and liability costs if you injure someone else or damage their property with your car.

Car insurance rates are determined by various factors that reflect your risk level as a driver. The higher your risk level, the higher your premium. The lower your risk level, the lower your premium. Some of the factors that affect your car insurance rates are:

• Your age: Younger drivers tend to pay more for car insurance than older drivers because they are considered more risky and inexperienced behind the wheel.
• Your location: Your location affects your car insurance rates based on the crime rate, traffic density, weather conditions, and insurance regulations in your area. The higher the risk of theft, vandalism, collisions, or natural disasters, the higher your premium. The lower the risk, the lower your premium.
• Your vehicle type: Your vehicle type affects your car insurance rates based on its make, model, year, safety features, and value. The more expensive, powerful, or rare your vehicle is, the higher your premium. The cheaper, safer, or more common your vehicle is, the lower your premium.
• Your driving record: Your driving record reflects your driving behavior and history of accidents, violations, and claims. The cleaner your record, the lower your premium. The more blemishes on your record, the higher your premium.
• Your credit history: Your credit history is a record of how you have managed your financial obligations over time. It includes information such as your payment history , your debt level , your credit mix , your credit age , and your credit inquiries . Based on your credit history , you are assigned a credit score , which is a numerical representation of your creditworthiness . The most common credit scoring models are FICO and VantageScore , which range from 300 to 850 . The higher your score , the better your credit history . In most states , car insurance companies use a different type of score called a credit-based insurance score to determine your car insurance rates . This score is similar to your regular credit score , but it weighs the factors differently based on how they relate to insurance risk . Insurance risk is the likelihood that you will file a claim and cost the insurer money . Insurers use various factors to assess your insurance risk , such as your driving record , your location , your vehicle type , and your credit history . According to the Insurance Information Institute (Triple-I), studies have shown that there is a correlation between credit history and insurance risk . Drivers with lower credit scores tend to file more claims and incur higher losses than drivers with higher credit scores . Therefore , insurers use your credit-based insurance score as one of the factors to determine your premium. The higher your score, the lower your premium. The lower your score, the higher your premium.

One of the factors that affects your car insurance rates is your mileage, which is the number of miles you drive per year. The more you drive, the higher your premium. The less you drive, the lower your premium. This is because driving less reduces your exposure to risk and the likelihood of filing a claim.

Some car insurance companies offer usage-based insurance, which is a type of car insurance that bases your premium on how much and how well you drive. Usage-based insurance uses a device or an app to track your mileage and driving habits, such as speed, braking, acceleration, and time of day. Based on this data, the insurer adjusts your premium accordingly. Usage-based insurance can be a good option for low-mileage drivers who want to save money and get personalized rates.

The benefits of driving less for your car insurance rates are obvious: you can save money and get cheaper premiums. But driving less can also have other benefits for your overall well-being, such as:

• Reducing your carbon footprint and environmental impact by emitting less greenhouse gases and pollutants.
• Improving your physical health and fitness by walking, biking, or taking public transportation instead of driving.
• Enhancing your mental health and mood by avoiding traffic congestion, road rage, and stress.
• Saving time and money on gas, maintenance, parking, and tolls.

However, driving less can also have some drawbacks, such as:

• Limiting your mobility and convenience by restricting your travel options and destinations.
• Increasing your dependence on others or alternative modes of transportation that may not be reliable, safe, or comfortable.
• Missing out on some perks and rewards that come with driving more, such as loyalty discounts, rewards programs, or cashback offers.

How to find the best car insurance for low-mileage drivers

To find the best car insurance for low-mileage drivers, you should compare car insurance quotes from different insurers and find the best coverage and price for your needs. You can use online tools and resources that can help you find the best deals for your situation. For example:

• You can use comparison websites that allow you to enter some basic information about yourself, your vehicle, and your desired coverage level and get quotes from multiple insurers in minutes.
• You can use online calculators that estimate how much you can save by driving less or by changing other factors that affect your premium.
• You can use online reviews and ratings that provide feedback from other customers about their experiences with different insurers in terms of price, service, claims handling, and customer satisfaction.

Before you choose an insurer and sign up for a policy based on their quote, you should always read the fine print and understand the terms and conditions of the policy. You should also check the financial strength and reputation of the insurer to make sure they are reliable and trustworthy. You can use online sources such as AM Best , J.D. Power , or Better Business Bureau to find out more about an insurer’s financial stability and customer satisfaction.

Some of the best car insurance companies for low-mileage drivers based on customer reviews , ratings , and discounts are:

• Root: Root was one of the first car insurance companies in the U.S. to be fully app-based. The app tracks both the mileage and the driving behavior of the driver and offers personalized rates based on their performance. Root claims to save drivers up to 52 percent on their car insurance premiums compared to traditional insurers. Root also offers a referral program that rewards drivers with cash for inviting their friends to join.
• Metromile: Metromile is a pure pay-per-mile auto insurance company. Unlike Root , your rate is tied directly only to the number of miles you drive per month , not to how you drive . Metromile charges a low base rate plus a few cents per mile , which can vary depending on your age , location , vehicle type , and driving record . Metromile claims to save drivers an average of $741 per year compared to traditional insurers. Metromile also offers a smart driving app that tracks your mileage , provides trip insights , diagnoses car issues , and helps you locate your car .
• MileAuto: MileAuto is another pay-per-mile auto insurance company that offers low rates for low-mileage drivers . Unlike Root or Metromile , MileAuto does not require any device or app to track your mileage . Instead , you simply take a photo of your odometer every month and submit it to MileAuto . MileAuto charges a base rate plus a per-mile rate that varies depending on your age , location , vehicle type , and driving record . MileAuto claims to save drivers up to 40 percent on their car insurance premiums compared to traditional insurers. MileAuto also offers roadside assistance , rental reimbursement , and uninsured/underinsured motorist coverage as optional add-ons .

When looking for the best car insurance for low-mileage drivers , you should also consider other factors that can affect your car insurance rates , such as:

• Your driving record: Your driving record reflects your driving behavior and history of accidents , violations , and claims . The cleaner your record , the lower your premium . The more blemishes on your record , the higher your premium . You can improve your driving record by following the traffic laws , avoiding distractions , and driving defensively .
• Your location: Your location affects your car insurance rates based on the crime rate , traffic density , weather conditions , and insurance regulations in your area . The higher the risk of theft , vandalism , collisions , or natural disasters , the higher your premium . The lower the risk , the lower your premium . You can lower your premium by choosing a safer neighborhood , parking in a garage or a secure lot , and installing anti-theft devices on your vehicle .
• Your vehicle type: Your vehicle type affects your car insurance rates based on its make , model , year , safety features , and value . The more expensive , powerful , or rare your vehicle is , the higher your premium . The cheaper , safer , or more common your vehicle is , the lower your premium . You can lower your premium by choosing a vehicle that is cheaper to repair or replace , has a good safety rating , and has anti-lock brakes , airbags , and other safety features .
• Your credit history: Your credit history affects your car insurance rates in most states . By improving your credit score, you can lower your premium and save money over time. You can improve your credit score by following some simple steps such as paying your bills on time, reducing your debt, checking your credit report regularly, and avoiding applying for new credit.

How to qualify for and maintain low-mileage discounts

If you want to qualify for and maintain low-mileage discounts from different insurers, you should follow some steps and guidelines. Here are some tips and advice:

• Check your eligibility: Different insurers have different criteria and definitions for low-mileage drivers. Some insurers offer low-mileage discounts for drivers who drive less than a certain number of miles per year, such as 10,000 or 12,000 miles. Some insurers offer usage-based insurance programs that track your mileage and driving habits and adjust your premium accordingly. You should check with your insurer or potential insurer to find out their eligibility requirements and how they measure your mileage.
• Apply for the discount or program: Once you have confirmed your eligibility, you should apply for the discount or program that suits your needs and preferences. You may need to provide proof of your mileage, such as odometer readings, telematics devices, or smartphone apps. You may also need to sign up for an online account or download an app to access the discount or program. You should follow the instructions of your insurer and complete the application process.
• Track and verify your mileage: After you have applied for the discount or program, you should track and verify your mileage regularly and accurately. Depending on the method used by your insurer, you may need to take a photo of your odometer every month, plug in a device into your car’s diagnostic port, or use an app on your phone that connects to your car’s Bluetooth. You should also keep a record of your mileage and receipts for any maintenance or repairs that might affect your odometer reading.
• Update your insurer of any changes: If you are going to exceed or have exceeded the permitted mileage specified in the policy at any time within the insurance period, you must notify your insurer immediately. They will then convert your low-mileage policy to a standard policy with additional premium payable by you. If you have not advised them that you will or have exceeded the permitted mileage allowed, do note that there may be an additional excess applicable to you on each and every claim. It is thus very important that you declare the correct mileage when you apply for the policy and update your insurer of any changes.

Some of the benefits of qualifying for and maintaining low-mileage discounts are:

• You can save money on your car insurance premium by paying only for what you use.
• You can get personalized rates based on your actual driving behavior and performance.
• You can get feedback and insights on how to improve your driving skills and safety.

However, some of the drawbacks of qualifying for and maintaining low-mileage discounts are:

• You may have to install a device or an app that tracks your mileage and driving habits, which may raise privacy or security concerns.
• You may have to pay extra fees or charges for the device or app, such as installation, activation, or monthly fees.
• You may lose the discount or pay a higher premium if you drive more than expected or exhibit risky driving behavior.

Conclusion

Driving less can help you get cheap car insurance for your needs and budget. By driving less, you can reduce your exposure to risk and the likelihood of filing a claim. You can also qualify for low-mileage discounts or usage-based insurance programs that offer personalized rates based on your mileage and driving habits.

To get cheap car insurance for low-mileage drivers , you should compare car insurance quotes from different insurers and find the best coverage and price for your needs . You can use online tools and resources that can help you find the best deals for your situation . You should also read the fine print and understand the terms and conditions of each policy before signing up . You should also check the financial strength and reputation of each insurer to make sure they are reliable and trustworthy .

To qualify for and maintain low-mileage discounts , you should check your eligibility , apply for the discount or program , track and verify your mileage , and update your insurer of any changes . You should also be aware of the benefits and drawbacks of qualifying for and maintaining low-mileage discounts .

By following these tips and strategies , you can get cheap car insurance for low-mileage drivers and save money and hassle in the long run.