There are three ways to save on car insurance if you don’t drive often. You can take advantage of low mileage discounts, Secure Pay Per Mile or insurance based on usage.
Keep in mind that we are talking about miles traveled in a period of time, not the total number of miles on the odometer. In other words, your car does not need less than 8000 miles on the odometer to be eligible for low mileage insurance – you typically need to drive less than 8000 miles each year.
#1 Low Mileage Sale
The simplest way to save with long distance car insurance is to get a discount from your service provider. Not all companies offer discounts for low mileage. Those that do offer discounts usually if you drive less than 7,500 or 8,000 miles per year, which is about 21 to 22 miles per day.
Here are a few of the providers that offer low mileage Car Insurance Discounts:
- United States of America: Low mileage car insurance discount is based on annual mileage.
- safco insuranceLow mileage discount requirements have not been published.
- American family insurance: Get a discount for driving less than 7,500 miles.
- farm office: Get a discount for driving less than 7,500 miles (depending on the state).
- pimco: Get a discount for driving less than 8000 miles.
If your average mileage has changed since last year, it’s a good idea to reach out to your agent to see if the company offers a low mileage discount. Companies that don’t advertise low mileage discounts may consider your miles when renewing your rate as well.
#2 Secure Pay Per Mile
Pay-per-mile programs were created to give drivers specialized options for short-haul car insurance. With these programs, your prices are linked directly to the miles you traveled. These programs typically include a base rate and a rate per mile per month. The software tracks your miles using an additional device or mobile app.
Pay-per-mile programs also set a maximum number of billable miles per day, which means you can take a road trip without worrying about a $1,000 insurance bill. A few of the leading pay-per-mile providers are:
- metromil: According to the Metromile website, people who drive 2,500 miles a year save about $947 with a pay-per-mile program compared to standard insurance.
- Allstate Milewise®: According to Allstate’s Milewise website, people who drive 3,000 miles annually can save 61% with the program.
- SmartMiles nationwide®: In one example on the Nationwide SmartMiles website, a driver went from paying $133 a month on a traditional car insurance policy to paying $95 a month for driving 500 miles a month.
#3 Usage-Based Insurance
Another way to save money with car insurance with minimal mileage is to try a usage-based program like Snapshot® of progressive. Usage-based software tracks driving behaviors such as hard braking, late-night driving and rapid acceleration.
Most of these programs also consider mileage a major factor in determining your discount. While usage-based options aren’t advertised as low-mileage car insurance programs, people who drive less typically save more. Safe driving programs that calculate the distance or miles traveled in your score include:
Keep in mind that these programs track other things beyond mileage, so you may not be saving money if you have bad driving habits. However, it may be a good idea to check usage-based programs if you want coverage from a specific provider that doesn’t offer a low mileage discount or pay-per-mile program.
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