TL;DR: Yes, if you drive fewer miles, you could qualify for a low-mileage car insurance discount. These discounts typically range from 10% to 20% off your premium, depending on your annual mileage.
If you’re in Illinois and looking to save on car insurance, Insure on the Spot can help you find the best options — call 773-202-5060 for a free quote today!
What Is Considered Low Mileage for Car Insurance?
In the insurance world, “low mileage” typically refers to driving significantly fewer miles than the average driver. Most insurers consider around 7,500 miles per year or fewer as low mileage, although some may set the threshold at 5,000 or even 10,000 miles annually. In contrast, the average U.S. driver logs about 13,500 miles each year, making anything well below that a potential qualifying factor for lower rates.
In Illinois, Insure on the Spot can help identify insurers who reward drivers with low mileage. Reporting your mileage accurately during the quote process is key to unlocking these savings.
How Does Low Mileage Affect Your Car Insurance Rates?
The fewer miles you drive, the less exposure you have to potential accidents. Insurance companies reward low-mileage drivers with lower premiums. On average, driving under 7,500 miles per year can reduce your premium by $50–$100 annually. However, it’s important to note that mileage is just one factor insurers consider; your driving record, vehicle type, and location also play significant roles.
In Illinois, insurers don’t have laws requiring mileage-based pricing, but many still offer discounts for low-mileage drivers. If you’re near Chicago and drive less, Insure on the Spot can help you get the best rates.
Which Car Insurance Companies Offer Low-Mileage Discounts?
Many well-known insurance companies offer low-mileage discounts, including:
- State Farm: Offers discounts if you drive under 7,500 miles per year, with additional savings through their Drive Safe & Save program.
- USAA: Available for military members, USAA offers discounts based on annual mileage and driving habits.
- Allstate: Offers Milewise, a pay-per-mile insurance program, which can save you up to 50% for low-mileage drivers.
- Geico: While they don’t have a specific low-mileage discount, Geico’s rates typically drop for drivers with fewer miles.
Insure on the Spot can help Illinois drivers find the best low-mileage discount by comparing quotes from various insurers.
How Can You Qualify for a Low-Mileage Discount?
Qualifying for a low-mileage discount is straightforward. Follow these steps:
- Accurately report your mileage: When requesting a quote or renewing your policy, be honest about how many miles you drive annually. Many insurers default to 12,000 miles/year if you don’t specify, so make sure to adjust it accordingly.
- Provide proof if necessary: Some companies might ask for proof, such as an odometer reading, maintenance receipts, or an odometer inspection report.
- Consider enrolling in a telematics program: Many insurers offer programs like Progressive’s Snapshot, which tracks your driving habits and mileage. This can help lower your rate further.
Be sure to inform your insurer of any changes in your driving habits to ensure you maintain the correct rate.
What Are Pay-Per-Mile and Usage-Based Insurance Programs?
If you drive very little, a pay-per-mile insurance plan could be a better fit. With this plan, you pay based on the miles you drive, not a set annual rate. Companies like Metromile and Allstate’s Milewise offer these options, which are ideal for low-mileage drivers. These programs can significantly reduce your costs if you rarely drive.
Usage-based insurance (UBI), such as Progressive’s Snapshot or State Farm’s Drive Safe & Save, also tracks your driving habits. These programs often offer an initial discount for safe driving and continued savings based on how you drive.
Consider these options to save even more, particularly if your driving habits are safe and low-risk.
Frequently Asked Questions (FAQs)
Q: How many miles per year is considered low mileage for car insurance?
A: Low mileage is typically anything under 7,500 miles per year. Some insurers may set their limits at 5,000 or 10,000 miles annually.
Q: Is car insurance cheaper if you drive fewer miles?
A: Yes. Generally, the fewer miles you drive, the cheaper your car insurance will be. You could save $50–$100 per year by reducing your mileage significantly.
Q: Which insurance companies offer low-mileage discounts?
A: Many insurers, including State Farm, USAA, Geico, and Allstate, offer low-mileage discounts or alternative pay-per-mile plans for low-mileage drivers.
Q: What happens if I exceed the mileage I stated on my policy?
A: If you exceed your stated mileage, your insurer may adjust your premium at renewal or through a mid-term adjustment if you’re enrolled in a telematics program. Be sure to update your insurer to avoid surprises.
Q: How do I prove low mileage to my insurance company?
A: Proof can include odometer photos, maintenance records, or data from a telematics program. Keep track of your mileage and provide documentation as requested.
Get a Quote Today!
Looking for the best low-mileage insurance plan? Insure on the Spot is here to help Illinois drivers save. Call 773-202-5060 for a free, no-obligation quote, or get started online today!