How Does Total Mileage Driven Impact My Car Insurance Rates?
Last Updated on December 8, 2025
Your annual mileage plays a major role in determining your car insurance rates. The more you drive, the more exposure you have to accidents. More accidents lead to more claims, which leads to higher risk for your insurer — and higher premiums for you.
Because of this, insurance companies heavily factor your total yearly mileage into your car insurance rates. Most insurers compare your mileage against the national average and adjust pricing accordingly.
Today, the typical American drives about 10,000 to 12,000 miles per year. If you drive significantly less, you may qualify for discounts. If you drive significantly more, you may pay extra.
Key Takeaways
- The average American drives 10,000–12,000 miles per year, and insurers use this baseline to price policies.
- Drivers who travel fewer than 10,000 miles per year can qualify for meaningful low-mileage discounts.
- Many insurers require mileage verification through apps or usage-based insurance tracking devices.
- The insurance industry is shifting toward mileage-based pricing, making comparison shopping more important than ever.
How Much of a Low-Mileage Discount Can You Get?
Drivers who are retired, semi-retired, or who work from home often qualify for low-mileage discounts. In fact, insurers now reward drivers who stay off the road — especially during peak-risk times like morning and evening commutes.
NerdWallet analyzed top insurers and found meaningful savings for drivers who reduce annual mileage. Here are examples of low-mileage discounts from major companies:
- State Farm: ~14% discount when reducing mileage from 10,000 to 5,000 miles per year
- Liberty Mutual: ~6% discount for dropping from 10,000 to 5,000 miles
- GEICO: ~6% discount from 10,000 to 5,000 miles, plus another ~7% when reducing to 2,500 miles
These savings aren’t guaranteed nationwide — rates vary significantly depending on your region and insurer. Some companies barely discount for mileage. Others offer generous reductions for low-mileage drivers.
Retirees and remote workers often qualify for even better savings because they avoid high-risk rush hour traffic. Fewer cars on the road = fewer accidents = lower rates.
Curious how driving habits and fuel efficiency relate? Learn how many miles you can drive on one gallon of gas here.
Best Low-Mileage Car Insurance Companies
| Insurance Company | Low-Mileage Discount Potential | Best For | Usage-Based Program |
|---|---|---|---|
| State Farm | Up to ~14% off for reducing from 10,000 → 5,000 miles; additional savings available with safe-driving habits. | Retired drivers, remote workers, and consistent low-mileage households. | Drive Safe & Save |
| GEICO | ~6% off for 10,000 → 5,000 miles; another ~7% dropping to 2,500 miles. | Drivers wanting reliable low rates without aggressive tracking. | DriveEasy |
| Liberty Mutual | ~6%–9% savings for significant mileage reduction. | Drivers who want moderate savings and strong claims handling. | RightTrack |
| Allstate | Often 10%–25% for low mileage combined with safe-driving performance. | Drivers who are below-average mileage AND careful behind the wheel. | Drivewise |
| USAA | Varies, but strong discounts for low annual mileage and off-peak driving. | Military families and retired service members with low annual mileage. | SafePilot |
| Nationwide | Up to 30% or more with low-mileage + safe-driving metrics. | Drivers wanting predictable telematics and strong long-term pricing. | SmartRide |
| Progressive | Savings vary (~5%–20%). Best deals given to extremely low-mileage drivers. | Drivers who combine low mileage with data-friendly telematics use. | Snapshot |
You May Need to Prove Your Mileage with a Tracker
To prevent abuse of low-mileage discounts, many insurers require proof. If you claim to drive less, your company may request mileage verification through an app or plug-in car tracker.
These devices track your mileage for one to three months and help insurers accurately price your policy. If your driving habits stay below certain thresholds, your discount is applied.
This concept is called usage-based insurance (UBI). Major programs include:
- Allstate Drivewise
- USAA SafePilot
- State Farm Drive Safe & Save
- GEICO DriveEasy
- Farmers Signal
These programs monitor mileage, hard braking, acceleration, and even time of day. Safe, low-mileage drivers often earn large discounts.
The Insurance Industry Is Moving Toward Mileage-Based Policies
Usage-based insurance is quickly becoming the industry standard. As insurers push for more personalized pricing, mileage-based policies are expanding nationwide.
But there’s also a downside: UBI programs make it harder for customers to quickly compare quotes between companies. If your current insurer uses tracking to offer a custom rate, switching insurers becomes more complicated. Many drivers stay put because they don’t want to re-install a tracker or restart the monitoring period with a new insurer.
FAQ’s on Mileage and Insurance
Conclusion: Compare Quotes to Make Mileage Work in Your Favor
Annual mileage has a meaningful impact on car insurance rates. The more you drive, the higher your risk and your premiums. But if you drive less than 12,000 miles per year — and especially under 10,000 — you may unlock significant savings.
If you’re a low-mileage driver, be sure to choose an insurer that actually rewards your low usage.
And if you’re a high-mileage driver, look for companies that rely less on mileage — or that offer fair pricing to commuters.
Compare quotes today to see how your mileage affects rates in your area and find the company best suited for your driving habits.
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