Marissa Hayes is a technical editor and contributing writer. She holds a Bachelor’s Degree in history, and she was the editor of the literary magazine, The Bluestone Review.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Car Insurance Agent

UPDATED: Oct 8, 2021

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The Short of It

  • Most car insurers put drivers into mileage brackets and charge more if you drive more.
  • Many companies offer special low-mileage car policy discounts of up to 30% for having a short commute.
  • You have to at least have liability coverage if you’re going to be driving at all. Requirements vary by state.
  • You should consider buying a low-mileage auto policy.

Can you get cheaper auto insurance if you drive less than 25 miles per day?

The general rule among companies is that driving fewer miles means lower rates. In fact, there are companies that may be willing to discuss discounts for travel of 40 miles or less daily.

Many companies offer special low-mileage car insurance discounts up to 30% for having a short commute.

If you’re looking for the cheapest car insurance on cars driven less than 25 miles a day, you’re in luck. Enter your ZIP code into our free tool to get quotes from multiple insurers for low-mileage auto rates.

How can you get cheaper auto insurance if you drive less?

Does driving less lower premiums? Just what is considered a low-mileage driver? What discounts are available with car insurance for low-mileage drivers?

Yes, car policies can be cheaper if you drive less. But how do you find out if you are a low-mileage driver and what insurers consider as low mileage for car insurance?

Many people who work from home, are stay-at-home parents, or are retired don’t drive very much and are great candidates for a pay-per-mile insurance program.

If you’re driving less than 50 miles a day, your insurers will factor that into your auto insurance coverage rates.

If your car is used less than 50 miles a day, that’s going to mean you have a lower risk with fewer opportunities to get into an accident.

This also means that if you increase mileage, your car insurance company needs to be informed. If you don’t and get into a car accident, that could be cause for your claim to be denied.

How much difference does mileage make for auto insurance rates?

Even though a clean driving record and credit history are the most important factors that insurers use to determine your rates, commute length is also factored in.

The table below shows how your insurance rates change based on car insurance mileage brackets which goes by how far you’re driving to work every day.

Average Annual Auto Insurance Rates by Commute Length
CompaniesAverage Annual Rates for 10 Miles Commute,
6,000 Annual Mileage
Average Annual Rates for 25 Miles Commute,
12,000 Annual Mileage
State Farm$3,175.98$3,344.01
American Family$3,401.30$3,484.88
Liberty Mutual$5,995.27$6,151.63
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As you can see, car insurance if you drive less than 25 miles a day is cheaper than if you do more than that. For these major insurers, your rates can increase anywhere from a negligible less than one percent to five percent. It adds up.

And it can vary by the insurance company. Whether you drive less than 40 miles a day or 35 miles a day, insurance rates may change. Each insurer is unique in how they calculate your rates, so it’s important to check around. If you drive less, you should pay less for car policies.

Because companies use many factors to determine your rates, it might not be easy to figure out who has the cheapest low-mileage car policies.

Look at quotes that factor in how much you drive combined with other things like your driving history to find the best deal on auto coverage.

Can you get low-mileage auto insurance discounts?

Can customers save with GEICO if they drive less than 50 miles a day? Are there big savings with low-mileage discounts?

Not all companies offer a huge discount. In a recent survey of 249 companies, only seven gave considerable low daily mileage discounts. The discounts on premiums can accumulate if you qualify under other factors like zero car accidents, age over 25, and even just having airbags.

There are up to 60% discounts available from large companies based on the multi-factor system. In fact, places like State Farm offer up to 30% off insurance premiums in low-mileage discounts alone.

To get the biggest savings, contact your insurance company if you drive less than 25 miles a day for an accurate assessment. The traditional car insurance option may no longer be the cheapest car insurance for you. They will look up proof of your driving history because they will definitely not take your word for it.

Also, you might as well inquire with other companies, especially those that offer pay-per-mile car insurance since there is no standard formula that all companies follow.

There is, however, a new rule for drivers who drive less than 50 miles a day that allows drivers to get large discounts depending on where they live and if they’ve had tickets or DUIs in the last two years.

Whether you’re in Massachusetts, California, or Illinois, cars used less than 50 miles a day may qualify for additional low-mileage discounts.

Speak with your agent to see if the 50-mile rule is in effect in your state and if you are currently getting the cheapest car insurance rates possible.

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What is usage-based auto insurance?

One option for people who don’t drive far each day would be usage-based insurance. The National Association of Insurance Commissioners notes that this can help you save money as it tracks your actual driving. But it might not be for everybody as some people will have privacy concerns.

Telematics uses a device that either installs into the vehicle or works through an app on a smartphone. Though you can save with affordable low-mileage car coverage, you may want to add up how many miles you normally drive before you choose this option.

What is pay-per-mile auto insurance?

Pay-per-mile auto insurance only charges you based on the miles you drive. While it might sound like a good idea, there are questions you need to ask before you switch to a pay-per-mile program.

A few of the questions you should ask are:

  • How does pay-per-mile car insurance work? Unlike other types of usage-based insurance, pay-per-mile is not concerned with how you drive, just the distance covered. This can be especially helpful since you aren’t dinged for those sudden stops when people pull out in front of you. Your mileage is either tracked with an app on your phone or a plug-in device. Then you are charged for your mileage at the end of the month.
  • How much money can I save with pay-per-mile car insurance? There is no standard monthly cost since it is all based on the distance you drive each month. However, many companies have a base rate charge each month then also add a small charge per mile.
  • At what mileage is pay-per-mile car insurance worth it? If you drive less than 8,000 miles a year, this type of program might be worth it to you. Each company has its own guidelines so be sure to check it out before you sign up. Also, it’s important to note that most companies have a daily cap so that road trip won’t cost you too much.
  • Can anyone sign up for pay-per-mile car insurance? Anyone can sign up if it is available in your area.
  • Is pay-per-mile car insurance available near me? Usage-based auto policies aren’t available in every state. Speak with your agent to find out if you are eligible for pay-per-mile insurance where you live.
  • Does pay-per-mile insurance offer additional, bonus coverage? Again, that will depend on the company you are using. Pay-per-mile policies do offer traditional coverages like liability, comprehensive, and collision.
  • Do I need to buy new technology to use pay-per-mile insurance? The companies that use a device that has to be plugged into your dash will send that to you as part of the program. Other than that, you should only need your smartphone to use pay-per-mile.

Make sure you do your due diligence and ask as many questions as possible before you sign up for any car policy. Become knowledgeable about your auto coverage needs so that you can find the perfect coverage for your specific situation.

What’s the difference between pay-per-mile auto insurance and pay-as-you-drive coverage?

Pay-as-you-drive car policies base your monthly charges on how you drive. Factors like speed, time of day you drive, and how many times you hit your brakes hard will all contribute to your rates.

Pay-per-mile insurance is only concerned with how far you drive each month. There are no extra charges for poor driving habits.

What is the minimum required auto coverage?

No matter where you live and what you drive, all states have a set of requirements laid down for car coverage.

The Insurance Information Institute states that one in eight drivers is going around uninsured, so it’s important to get the right coverage for you. Some states, like Virginia, have a policy for cars used less than 50 miles per day.

But this doesn’t cover what happens if you get hit by an uninsured motorist or what happens if you cause a single-vehicle accident. That’s why it’s important to consider adding more than just the basic coverage. You never know when you may need Personal Injury Protection of Uninsured Motorist Coverage.

Collision and comprehensive coverages are generally not that much more expensive to add on. The peace of mind knowing you’re fully covered can be worth the increased rate.

If you drive less than 25 miles a day or if you are driving less than five miles a day make sure you shop around before you buy an auto policy.

To get the best car rates if you drive less than 25 miles a day, you can get free quotes from multiple insurers. Enter your ZIP below to compare low-mileage auto quotes if you drive less than 25 miles a day.