It’s a reasonable assumption: if you drive less, you should pay less for auto insurance. After all, fewer miles mean less time on the road, which typically reduces your risk of being involved in an accident. But many drivers are surprised when their insurance premiums don’t drop significantly—or even increase—despite low mileage.
So why doesn’t driving fewer miles always lead to cheaper car insurance? Let’s break it down.
1. Mileage Is Just One of Many Pricing Factors
Insurance companies consider numerous variables when calculating your rate, and mileage is only one small piece of the puzzle. Other important factors include:
- Your driving history (accidents, tickets, claims)
- Location (urban vs. rural, theft/vandalism rates, weather risks)
- Age and gender
- Type of vehicle (value, repair costs, safety features)
- Credit score (in many states)
- Coverage selections (liability only vs. full coverage)
Even if you drive less, high-risk indicators in other categories can outweigh your reduced mileage.
2. Insurers Use Mileage Ranges, Not Exact Numbers
Most insurance companies don’t rate you down to the exact mile you drive per year. Instead, they use general mileage brackets, such as:
- 0–7,500 miles/year
- 7,501–12,000 miles/year
- 12,001–15,000 miles/year
- 15,001+ miles/year
So, if you drive 5,000 miles/year, you might still fall into the same pricing tier as someone who drives 7,000 miles/year.
Minor mileage reductions may not move you into a lower tier unless it’s a substantial change.
3. City Driving = Higher Risk, Even at Low Mileage
Low mileage doesn’t always equal low risk. For instance:
- A commuter who drives 30 miles a day on highways may be lower risk than someone who drives 5 miles a day through congested city streets.
- Frequent short trips in stop-and-go traffic increase the chance of accidents, fender benders, and wear and tear.
Where and how you drive often matters more than how far you drive.
4. Insurance Companies May Not Verify Mileage
Unless you’re enrolled in a usage-based insurance (UBI) or telematics program, your insurer may not even verify your actual mileage. They may rely on self-reported estimates, which means:
- Your premium might not change even if your mileage does.
- They may use average assumptions unless you request a mileage audit.
It’s up to you to notify your provider and potentially request a mileage-based rate.
5. Some Cars Are Expensive to Insure—No Matter the Mileage
Even if your car rarely leaves the driveway, you still need insurance to protect it from:
- Theft or vandalism
- Weather-related damage
- Garage or driveway accidents
- Liability lawsuits
If your car is expensive to repair or replace, or has a high theft rate, your insurer may still charge a higher premium regardless of how much you drive.
6. When Low Mileage Does Help: Usage-Based Insurance (UBI)
If you truly drive less than the average American (roughly 12,000 miles/year), consider switching to a UBI program, where your premium is based on:
- Actual miles driven
- Time of day you drive
- Driving behavior (speeding, hard braking, acceleration)
Many UBI programs use smartphone apps or plug-in devices to track this data.
For true low-mileage drivers, these programs can lead to 20–40% savings.
How to Potentially Lower Your Premium
If you drive less and want your insurance rate to reflect it, try these steps:
- Ask your insurer to update your mileage if your driving habits have changed significantly.
- Inquire about low-mileage discounts—some carriers offer them for drivers under 7,500 miles/year.
- Explore telematics programs (like Allstate’s Drivewise, Progressive’s Snapshot, or State Farm’s Drive Safe & Save).
- Bundle policies (e.g., home and auto) for multi-policy savings.
- Raise your deductible to lower your premium—but only if you can afford the out-of-pocket cost in a claim.
Don’t Drop Essential Coverage to Save
While it’s tempting to reduce coverage to save money, remember that even low-mileage drivers can face:
- Costly repairs from a single accident
- Uninsured drivers
- Natural disasters or theft
Liability, uninsured motorist, and comprehensive coverage remain important—even if you’re not on the road every day.
Final Thoughts
Driving fewer miles doesn’t always guarantee lower premiums—but understanding why helps you make smarter choices. By proactively communicating with your insurer, exploring telematics options, and shopping around for the best policy, you can better align your insurance cost with your driving lifestyle.
Want to find an insurer that rewards low-mileage drivers? Reach out to a local independent agent—they can help you compare mileage-based plans and find the one that best fits your needs and budget.
At Capital Insurance Service, we are committed to offering our clients a wide range of comprehensive and affordable insurance policies. We go above and beyond to ensure that we meet your unique needs with tailored solutions. To find out more about how we can assist you, please reach out to our agency at 775-301-9099 or CLICK HERE to request a free, no-obligation quote.
Disclaimer: The content provided in this blog is for informational purposes only and should not be considered professional advice. For personalized guidance, it is important to consult with a qualified insurance agent or professional. They can offer expert advice tailored to your individual situation and help you make well-informed decisions about your insurance coverage.
