Best Auto Insurance for Low-Mileage Drivers: Save Hundreds in 2025
If you drive less than the average person, you’re likely overpaying for car insurance. Whether you work remotely, use public transportation, or are retired, low-mileage drivers deserve big savings — and in 2025, there are more insurance options than ever designed specifically for your driving habits.
In this guide, we compare the best auto insurance companies for low-mileage drivers, explain how mileage affects your premiums, and show you how to save hundreds per year.
🚗 Why Low Mileage = Lower Insurance Rates
Most insurers consider driving fewer miles a lower risk — fewer miles means fewer chances of accidents. As a result, many companies offer:
- Low-mileage discounts
- Pay-per-mile policies
- Usage-based tracking programs
According to the Insurance Information Institute, reducing your annual mileage by just 5,000 miles can cut your premium by 10–30%.
🏆 Top 7 Auto Insurance Providers for Low-Mileage Drivers (2025)
1. Metromile (Now part of Lemonade)
- Best For: True pay-per-mile insurance
- Average Savings: Up to $947/year
- How It Works: Base rate + per-mile charge
Metromile (under the Lemonade brand) specializes in pay-as-you-drive coverage. Ideal for drivers logging under 7,000 miles/year. You’ll plug in a device or use an app that tracks mileage, and you pay only for what you use.
💡 Perfect for city dwellers, remote workers, or second vehicles.
2. Mile Auto
- Best For: Privacy-focused pay-per-mile insurance
- Average Savings: $500–$1,000/year
- Tracking Method: Monthly odometer photo — no device required
Mile Auto is a no-tracking-device insurer that uses simple odometer readings. It’s available in many states and is ideal for those wary of constant GPS tracking.
3. Allstate Milewise
- Best For: Flexible national coverage with big brand backing
- How It Works: Pay-per-mile with a daily base rate
- Tracking: Plug-in or app-based
Allstate’s Milewise program is one of the most widely available UBI (usage-based insurance) options. It’s great for those who want pay-per-mile savings from a trusted national insurer.
4. Nationwide SmartMiles
- Best For: National availability + strong customer service
- Key Feature: Rates based on miles driven — monthly updates
SmartMiles by Nationwide gives you full coverage without overpaying when your car is parked most of the time. Safe drivers can also earn additional discounts through telematics data.
5. Liberty Mutual RightTrack
- Best For: Big upfront discount for good driving + low mileage
- Discounts: Up to 30%
- Tracking: 90-day app or device tracking
While not strictly pay-per-mile, Liberty Mutual’s RightTrack program considers mileage among other driving behaviors (speeding, braking, night driving). Great for low-mileage and safe drivers.
6. Progressive Snapshot
- Best For: Custom discounts for minimal usage + safe driving
- Savings Potential: Average driver saves $145/year
- Tracking: App or device-based telematics
Snapshot rewards infrequent drivers with deep savings, especially if your low mileage is combined with smooth driving habits.
7. GEICO Low-Mileage Discounts
- Best For: Drivers logging under 7,500 miles/year
- Program Type: Traditional low-mileage discount, not usage-based
GEICO offers a standard low-mileage discount to eligible drivers without the need for constant tracking. Just report your expected annual mileage and verify it periodically.
📉 How Much Can You Save as a Low-Mileage Driver?
| Annual Miles Driven | Traditional Premium | Pay-Per-Mile Premium | Estimated Savings |
|---|---|---|---|
| 12,000+ | $1,300 | $1,300 | $0 |
| 8,000 | $1,300 | $1,000 | $300 |
| 5,000 | $1,300 | $750 | $550 |
| 3,000 | $1,300 | $600 | $700 |
📌 Savings vary by state, driving record, and insurer.
🛠️ How to Get the Best Deal as a Low-Mileage Driver
- Know Your Annual Mileage
- Use your odometer or apps like Google Timeline to estimate.
- Compare Pay-Per-Mile vs. Traditional Policies
- Quote both options and run the numbers.
- Bundle with Home or Renters Insurance
- Bundling can increase savings by 10–25%.
- Ask About Telematics Programs
- Usage-based insurance (UBI) often offers extra discounts.
- Requote Every 6–12 Months
- Your mileage and rates can change — don’t stick with one carrier forever.
👥 Who Benefits Most From Low-Mileage Insurance?
- Remote Workers & Freelancers
- Retirees
- Urban Residents (Walkers, Bikers, Transit Users)
- Students
- Stay-at-Home Parents
- People With a Second Vehicle
If you’re driving under 6,000–7,000 miles per year, you could cut your car insurance bill by 30–60% by switching to a usage-based or pay-per-mile plan.
🔚 Final Thoughts
If you’re not on the road much in 2025, there’s no reason to pay like you are. With pay-per-mile insurance options and usage-based programs, low-mileage drivers can now save hundreds annually — without sacrificing full coverage.
💡 Start today: Get quotes from at least 3–4 providers and compare traditional vs. usage-based pricing.
🛡️ Related Articles:
- “Pay-Per-Mile Car Insurance Explained: Is It Right for You?”
- “Best Car Insurance for Retirees in 2025”
- “How to Lower Car Insurance Without Switching Companies”