The Less You Drive, The More You Could Save: Low-milage Auto Insurance Discounts

November 20, 2019

If you’re a low milage driver, you could be saving on your auto insurance. How much you save will depend on your insurance company and the state you live in. The savings aren’t huge, but every discount helps.

If you’re looking to save on your car insurance, you’ll want to know about these simple ways you can keep a little extra cash in your wallet.

Are you a low-milage driver?

To be considered a “low milage driver”, you’ll technically need to be someone who drives between 0-7,500 miles per year. The US standard is an average of 12,000 miles per year. Unless you ask for the low milage discount, insurance companies will quote you based on the US annual average.

A study done by the Consumer Federation of America showed how much people could save in certain areas. In California, for example, motorists who drive 5,000 miles or less annually saved an average of $81 a year. In Los Angeles, very-low mileage motorists who drive 2,500 miles or less annually saved $346 a year, or 30 percent compared with high-mileage motorists.

Insurance options as a low-milage driver

Usage based insurance: usage is usually kept track by telematics devices. The device is plugged into your vehicle, or on an app that is used. It will monitor the way you drive to determine your car insurance premium.

Instead of using your age, credit score and marital status, the device will track who you truly are as a driver. This is a popular and fast growing approach to insurance companies to price your premium. The benefit for low mileage drivers with this program, is you are “paying as you go”, rather determining what you pay based off of other rating factors.

6 companies that offer telematics program

Progressive Snapshot – used with mobile device or plug in. You will drive with Snapshot for your first policy period (usually 6 months). Then, through the app or online you can check your progress and how you’re driving.

AllState Drivewise – used with app. You earn by driving under 80 MPH, limiting late-night drives, and limiting hard braking. Earn up to 25% cash back every six months for everyday safe driving.

State Farm Drive Safe & Save – used through the app or OnStar plan. When you sign up, save 5% on your plan and up to 30% for good driving.

Esurance DriveSense – used through an app, which is only available as of now in certain states. Esurance is in the process of making the app available to all 50 states. After your first policy renewal, you could begin seeing your personalized discount based on your driving habits.

Nationwide SmartRide – used with a plug in device. You are able to track progress online and get personalized feedback. You’ll earn 10% discount when you sign up. The safer you drive, the higher the discounts you could get – up to 40%.

Liberty Mutual RightTrack – used through app and tracking device that sticks on your windshield. Drive for 90 days and receive a discount on your premium between 5%-30% based on your driving.

Finding low-milage insurance

Unless you live in the state of California, you won’t find large discounts for low-milage driving. However, any money you could be saving is something to take advantage of. Ask your insurance company about any low-milage discounts and look around to find programs that cater to you.

Quick Money Savings Tip For Safe Drivers

There are dozens of auto insurers – Which one will give you the best rate?

Step 1) Choose your vehicle make below.
Step 2) On the next page, complete the 4 minute questionnaire, and you'll have the opportunity compare the best rates in your area.
Step 3) Keep more money and possibly save hundreds!

1 Choose a make for potential car insurance discounts:

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