Finding the best car insurance for low-mileage drivers can be a challenge. While many factors come into play, such as costs, coverage options, complaints, and collision repair, we have analyzed the top companies to help you make an informed decision.
Low-Mileage Car Insurance Costs by Company
When it comes to costs, USAA stands out as the cheapest option. However, it’s important to note that USAA is only available to those with a military affiliation. If you don’t qualify for USAA, Travelers and Nationwide offer competitive rates for low-mileage drivers, whether your annual mileage is as low as 3,000 or up to 11,000.
Pay-Per-Mile Car Insurance
Another option that low-mileage drivers should consider is pay-per-mile car insurance. This type of policy allows you to pay based on the actual miles you drive, giving you more control over your insurance costs.
With pay-per-mile car insurance, you will have a daily or monthly base rate determined by traditional rating factors, such as age, credit, driving record, location, and vehicle. Your additional per-mile rate will vary based on the actual miles you drive. If you drive less in a month, your rates will go down accordingly.
Let’s take an example to better understand how pay-per-mile car insurance works. Suppose you have a $50 base rate with your pay-per-mile insurance and a $0.07 per-mile rate. If you drive 400 miles in a month, you will pay a total of $78 that month (400 miles x $0.07 = $28 + $50 base rate = $78).
Most pay-per-mile car insurance companies require you to use a smartphone app or a device plugged into your vehicle to monitor your mileage. Some insurers go beyond mileage tracking and also monitor and score your driving behavior. If your driving behavior is considered excellent, your base rate will fluctuate depending on your driving score. In that case, driving fewer miles annually and exhibiting excellent driving behavior can help you secure the best rates.
Here are some auto insurance companies that offer pay-per-mile programs:
- Allstate: Allstate’s Milewise offers a low daily rate plus a per-mile rate. In some states, driving behavior is also factored into the calculation of rates.
- Just Insure: Just Insure offers pay-per-mile insurance in Arizona. In addition to miles driven, Just Insure considers driving behavior and calculates a ScoreSafe rating. The better your score, the cheaper your cost per mile.
- Metromile: Metromile exclusively offers pay-per-mile car insurance policies, which include a monthly base rate and a per-mile rate.
- Mile Auto: Mile Auto does not track miles with an app or onboard diagnostic device but instead requires you to send a photo of your odometer each month. You will pay for the miles driven, plus your base rate.
- Nationwide: With SmartMiles, Nationwide offers a monthly base rate plus a variable per-mile rate based on your actual miles driven.
- Noblr: Noblr, a USAA company, provides pay-per-mile insurance exclusively to policyholders with a military affiliation. Noblr has a fixed rate plus a variable rate based on the number of miles you drive and how you drive.
Average Car Insurance Rates by Annual Mileage
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