Maybe you work from home or you live close to work. Perhaps you regularly use rideshare services or public transportation. As a result, you drive less than most people. If that’s the case, you may qualify for the lower rates.

Your annual mileage is a factor in determining your insurance rate. After all, if you drive less often, you have a reduced chance of getting into an accident. There’s also less wear and tear on your car so it stays in better shape. That’s why insurance companies offer discounts for low-mileage drivers.


Low Mileage Discounts

The average American drives about 13,476 miles a year or 37 miles a day. Low mileage insurance policies generally apply to those who drive about half of that amount or less. Each insurer sets its low mileage number so check with your insurance company to see if you qualify.

Your premium may be reduced by a percentage because you are a low-mileage driver, but how do they get this information if you don’t tell them? Your insurer may order reports from a third-party verified mileage program to get your annual mileage data. That data will be used when renewing your policy to make sure the insurer is using the most accurate vehicle information.

Low mileage discounts are automatic. When the mileage is determined, the rate factor (which can result in a decrease or increase) is automatically applied.   


How to Reduce Your Mileage

You may be able to reduce your mileage to qualify for a low mileage discount. Here’s how.

    • Start by calculating your mileage. Write down the odometer reading at the beginning of the week with the date. Then, check it after one week to find out how many miles you traveled. Multiply that number by 52 to get an estimate of about how much you drive a year. 
    • Commuting to work is the number one way that people rack up miles. If you do have a commute, investigate the ways that you can reduce the miles you drive. Try carpooling with a colleague. See if public transportation is available. Ask your employer if you’re able to work from home for a portion of your time.
    • Plan ahead when doing errands. Map out where you need to be and group your stops. If your grocery store is on your way home from work, for example, plan to stop en route rather than making an extra trip. Pro Tip: Choose free or low-cost home delivery services to avoid the time on the road altogether.
    • Walk or bike when you can, instead of driving. It gives you the benefit of great exercise in addition to saving on your car’s mileage. Just make sure to brush up on bicycle safety.  Pro Tip: Use bike-share programs if your area offers them to save on the cost of a bicycle.
    • If your family has two cars, try using one for daily driving and the other for leisure. In this way, you may qualify for a low mileage policy on the vehicle used less often.

Your car is one of your greatest investments. Keep it well-maintained and protect it with the right insurance.


This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or

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