The Best Low-Mileage Car Insurance (2026)
Drivers looking for cheaper premiums should consider low-mileage plans from Allstate, Mile Auto, and Hugo for maximum savings.
Secure. Free. Easy-to-use.
4.7 / 515K reviews
)
Written byAngela Brown
)
Angela BrownFreelance Personal Finance Writer
17+ years in insurance and personal finance writing
In-depth knowledge of home and real estate topics
Featured in
){kind=small}
){kind=small}
){kind=small}
)
Edited byAshley Cox
)
Ashley CoxSenior Managing Editor
7+ years in content creation and management
5+ years in insurance and personal finance content
Featured in
){kind=logo}
){kind=small}
)
Reviewed byDaniel Roccato
)
Daniel RoccatoAdvisor
30+ years in financial services
Clinical Professor of Finance, University of San Diego
)
Data reviewed byKonstantin Halachev
)
Konstantin HalachevVP of Engineering & Data Science
7+ years experience in data analysis
Ph.D. in Computational Biology
Updated
Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.
If you don’t drive much, you may wonder why your car insurance cost is so high. On average, Americans drive about 13,500 miles per year. If you put less than 7,500 miles on your car every year, you may qualify for significantly discounted rates or low-mileage policies.
You may also consider pay-per-mile policies, which have rates based on actual usage, especially if you drive less than 10,000 miles annually.[1] Multiple insurers offer pay-per-mile coverage, so it’s a good idea to compare quotes to help you find the best low-mileage car insurance policy for your needs.
Quick Facts
The “low-mileage” designation is specific to drivers who travel less than 7,500 miles yearly.
Telematics programs can collect data from drivers’ vehicles to help personalize premium costs.
Not all mileage-based programs use telematics to calculate car insurance premiums.
How low-mileage car insurance works
If you’re a low-mileage driver, you can take advantage of a variety of options when shopping for car insurance:
Telematics: Some companies use telematics programs that track your driving performance and provide data to the insurer. If you demonstrate safe driving habits, you can receive lower premiums.
Pay per mile: With a pay-per-mile policy, insurance companies typically charge you a base rate for coverage, plus a per-mile rate for the number of miles you drive each month.
Pay as you go: Most car insurance companies offer only six- or 12-month policies. But with Hugo, you can get a policy for three, seven, 14, and 30 days, as well as six months. Unfortunately, the insurer offers only state-minimum liability insurance.
Low-mileage discount: Some insurance companies offer discounts to people who drive fewer miles. The exact discount will vary by insurer.
If you work from home, are retired, or have a very short daily commute, you might consider a low-mileage car insurance policy to help you save.
Find Cheap Car Insurance
Liability rates start at $43 per month
Excellent
4.7 out of 5 based on 14,695 reviews
Secure. Free. Easy-to-use.
Best low-mileage car insurance companies
Choosing the right car insurance company is important for all drivers. If you’re looking for lower rates based on your annual mileage, it’s a good idea to check for companies that specifically offer pay-per-mile insurance, usage-based coverage, or significant discounts for low mileage.
You can find policies that provide the same or similar coverage as traditional insurance policies at a much lower rate.
Hugo: Best for drivers on a budget
| User Reviews | 4.6 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 6.3 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $185/mo |
4.6
Best choiceBased on 228 verified driver reviews and ratings
Hugo's score | Industry average | |
|---|---|---|
| Coverage options | 3.7 | 3.2 |
| Customer service | 3.2 | 3.6 |
| Discounts | 3.8 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 3.8 | 2.9 |
How drivers feel about Hugo
Drivers appreciate the pay-as-you-go option and affordability but dislike the lack of full coverage and poor customer service.
Based on analysis of verified reviews collected by Insurify
Best For
Showing recent national reviewsSee all 71 Hugo reviews
Verified Review
Reviewed in Texas on May 24, 2026
If you need day-to-day insurance, Hugo has you covered.
Verified Purchase
Reviewed in Texas on May 16, 2026
Great and quick service!
Verified Purchase
Reviewed in Kentucky on May 4, 2026
Wonderful, best decision I ever made.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
Not rated
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
Not rated
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
NR
Why we picked this company
Hugo launched in 2021 and is currently the only insurance company offering on-demand car insurance. Drivers can open a Hugo account without paying a down payment up front. You can choose a policy term of three, seven, 14, or 30 days, or six months, and you can pay smaller amounts more frequently instead of all at once. You’ll also receive instant proof of insurance. Hugo currently only offers state-minimum liability coverage in 13 states.
Pros
Short-term policies
No up-front down payment required
Flexible, pay-as-you-go insurance
Cons
Available in only 13 states
Doesn’t offer collision or comprehensive coverage
No discounts available
Mile Auto: Best for privacy
| User Reviews | 4.5 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.8 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $74/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $135/mo |
4.5
Best choiceBased on 204 verified driver reviews and ratings
Mile Auto's score | Industry average | |
|---|---|---|
| Coverage options | 4.0 | 3.2 |
| Customer service | 3.4 | 3.6 |
| Discounts | 4.0 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 4.0 | 2.9 |
How drivers feel about Mile Auto
Drivers appreciate the quality service but find the rates high and claim processing slow.
Based on analysis of verified reviews collected by Insurify
Best For
Showing recent national reviewsSee all 68 Mile Auto reviews
Verified Purchase
Reviewed in Tennessee on May 6, 2026
I just wish they would send me an actual insurance card and my policy info in the mail, not just email, because I have no way to print it.
Verified Purchase
Reviewed in Georgia on April 16, 2026
This is great for keeping your insurance costs down if you don't drive much. Leave yourself a little room when it asks for average miles per day, as we all have unexpected journeys from time to time. I've not had a problem with sending pictures or making payments online.
Verified Purchase
Reviewed in Georgia on March 17, 2026
So far, it has been very good.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
Not rated
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
2.18
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
NR
Why we picked this company
Mile Auto offers pay-per-mile insurance coverage. Unlike some companies, which typically use a black box to track mileage usage, Mile Auto asks you to send a photo of your odometer once per month. You pay a base rate plus a set rate per mile. Mile Auto uses a system that ensures the images you send are legitimate and compares your usage to your previous odometer readings.
Allstate: Best for drivers who don’t want to think about coverage
| User Reviews | 3.8 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.9 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $72/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $148/mo |
3.8
A solid optionBased on 10,862 verified driver reviews and ratings
Allstate's score | Industry average | |
|---|---|---|
| Coverage options | 3.8 | 3.2 |
| Customer service | 3.8 | 3.6 |
| Discounts | 3.8 | 2.9 |
| Policy transparency | 3.6 | 3.1 |
| Value | 3.3 | 2.9 |
How drivers feel about Allstate
Drivers appreciate the friendly customer service and efficient claims processing, but many find the rates too high and experience unexpected price increases. Some also report poor communication from agents.
Based on analysis of verified reviews collected by Insurify
Best For
Showing recent national reviewsSee all 4,456 Allstate reviews
Verified Review
Reviewed in Iowa on May 31, 2026
I am being overcharged for the most inexpensive coverage they have. At $80 a month for the lowest coverage liability that basically covers nothing, it is a poor choice. I've only been in one accident over 20 years ago. So Direct will cover you, just not as well as they say they do.
Verified Review
Reviewed in Mississippi on May 31, 2026
I think the policy rates are too high for our older vehicles.
Verified Review
Reviewed in Washington on May 31, 2026
Allstate raised my car insurance rates. When I called to ask why my rates increased, I was told it was because I turned 65! We hadn’t filed a claim in over 15 years, no tickets, nothing! I still work full time, and my husband is retired. I told the agent that was ageism and discrimination. Changed car and homeowners the same day and will save over $1200 a year.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
636
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.02
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A-
Why we picked this company
Allstate’s Milewise program charges based on how far you drive each month. You install a box that sends driving data to the mobile app so the company can track your mileage and charge you accordingly. Allstate charges a base rate plus a cost per mile. With this plan, you don’t have to worry about sending a photo each month; instead, the tracking box uploads the data independently.
Best telematics programs for low-mileage drivers
Telematics refers to data a device collects and sends back to an insurance company’s server. The devices track mileage and driving habits to help insurers better understand drivers’ behavior and customize their car insurance rates accordingly. Auto insurance companies may collect telematics through a device installed in a vehicle or through a mobile app.
Telematics can be helpful if you drive less often or practice very safe driving habits. The collected data allows you to save (sometimes substantially) on your car insurance rates. The data can also help you learn to recognize and correct bad driving habits. Though it’s important to keep in mind privacy concerns as you start sharing this information with your insurance company.
The table below shows how much you could save with some different insurers’ telematics programs.
Telematics Program  | Average Monthly Cost: Full Coverage | Average Annual Savings with Telematics Program |
|---|---|---|
| Progressive Snapshot | $142 | $231 per year |
| Allstate Drivewise | $148 | Up to 40% off premium |
| Nationwide SmartMiles | $188 | $38 per month |
| Travelers IntelliDrive | $192 | Up to 30% off premium |
| American Family KnowYourDrive | $160 | Up to 20% off premium |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Important Information
The biggest drawback of telematics programs is privacy concerns. For example, some consumers may be concerned about telematics’ ability to track location and gather other personal data.[2]
Some states, such as California and New York, have enacted legislation that requires insurers to disclose tracking practices and devices.[3]
How to choose the best low-mileage car insurance
If you think low-mileage car insurance could be right for you, follow these steps to choose a policy:
Check your mileage. Start tracking your mileage to get an idea of how many miles you put on your car each month. This will give you a clearer idea of whether low-mileage car insurance makes sense for you.
Compare car insurance quotes. Many large car insurance companies have some sort of telematics program. Compare quotes from three to five insurers with these programs, and read customer reviews to get a better sense of how each company does business.
Consider pay-per-mile options. Consider whether you want to install a tracking device in your car or whether you’d rather pay a base rate plus a rate for each mile you drive. Not every insurer requires you to install a tracking device to submit your monthly mileage information.
Purchase a policy. Once you’ve chosen an insurer, provide some additional details and purchase your new low-mileage policy.
Shop for Car Insurance Online
Check quotes from 120+ top insurance companies
Excellent
4.7 out of 5 based on 14,695 reviews
Secure. Free. Easy-to-use.
Low-mileage car insurance FAQs
Saving money on auto insurance may be simple if you don’t drive often. Here’s some additional information about low-mileage car insurance policies.
What is considered a low-mileage driver?
Low-mileage drivers typically drive 7,500 miles or less per year. But some insurers offer rates for people who drive less than 10,000 miles annually.
Does lower mileage reduce car insurance costs?
Sometimes. Being a low-mileage driver can help you reduce your car insurance costs if you put less than 10,000 miles on your car each year.
Is pay-per-mile insurance worth it?
Pay-per-mile insurance can save drivers a lot of money. Retirees, drivers working from home, and people who primarily use public transportation can save on insurance premiums without sacrificing coverage.
What’s the difference between pay-per-mile and usage-based insurance?
Pay-per-mile programs allow drivers to pay a base rate and a per-mile fee. Usage-based insurance uses telematics technology to consider factors like mileage, speed, turning, and other safe driving behaviors to offer discounts for good driving practices.
Sources
- U.S. Federal Highway Administration. "Average Annual Miles per Driver by Age Group."
- National Association of Insurance Commissioners. "Telematics."
- Insurance Information Institute. "Background on: Pay-as-you drive auto insurance (telematics)."
Methodology
Insurify data scientists analyzed more than 190 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
Related articles
)
What Is Telematics Car Insurance? A Complete Guide to Smarter, Cheaper Coverage
While telematics car insurance can save some safe drivers money, it can also cost you if you’re not careful behind the wheel.
)
Car Insurance Discounts: Full List and How to Qualify
Most drivers qualify for multiple discounts, like bundling, safe driver, or good student discounts. Here are the biggest discounts, savings, and how to get them.
)
What Is a Vanishing Deductible in Car Insurance?
A vanishing deductible can put money back into your pocket for being a safe driver.
)
Best Companies for Auto and Renters Insurance Bundles
An auto and renters bundle is when you purchase these two policies from the same insurer. State Farm, Allstate, and Erie are some of our top picks for bundling auto and renters insurance.
)
Top 10 Cheap Car Insurance Companies in June 2026
Country Financial and Auto-Owners have the cheapest rates, based on analysis of 190 million-plus Insurify quotes. Save time and money by comparing cheap car insurance quotes all in one place.
)
Best Companies for a Home and Auto Insurance Bundle in 2026
State Farm, Allstate, and Nationwide are the best insurers for home and auto insurance bundling.
)
Good Student Discount: What It Is and How It Works
Many car insurance companies offer discounts for young drivers who achieve good grades in school. Here’s how to get the savings.
)
Defensive Driving Discounts and Courses: What You Should Know
A defensive driving course can lead to lower car insurance premiums.
)
Angela BrownFreelance Personal Finance Writer
17+ years in insurance and personal finance writing
In-depth knowledge of home and real estate topics
Featured in
Ashley CoxSenior Managing Editor
7+ years in content creation and management
5+ years in insurance and personal finance content
Featured in
Daniel RoccatoAdvisor
30+ years in financial services
Clinical Professor of Finance, University of San Diego
Konstantin HalachevVP of Engineering & Data Science
7+ years experience in data analysis
Ph.D. in Computational Biology