Low Mileage Auto Insurance

Low mileage auto insurance coverage can really reduce your car insurance rates when you're driving less than 7,500 miles per year. You can choose to get the minimum auto insurance required by your state's insurance laws, or you can shop around for auto insurance companies that offer low mileage auto insurance discounts. Enter your ZIP code below to start comparing quotes now to get the best rates on your low mileage car insurance.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Nov 12, 2020

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The following is an exported forum post from our discontinued forum. If you would like to reply to this old forum post, please post a comment below.

I can’t find insurance under $90 a month. I only drive about 150 miles a year at most. I’m 30 I have no tickets or accidents and no one drives my car except me. My car is a 1999 Mazda Millenia and its garage kept. I just want the minimum required by Michigan, aka ticket protection. It would actually be cheaper to just call a taxi with what insurance costs me per mile.

It seems all the big dogs have a monopoly on the search engines so any advice on where to look or who to call is appreciated.

Our Answer

Driving just 150 miles per year certainly qualifies as ‘low mileage’! Your insurance company must love you. You’re paying normal premiums but have relatively little risk of getting into an accident or making a claim.

With that being said, paying $100 per month for car insurance on a 1999 Mazda seems excessive. With a little bit of research and adjusting, you should have no problem reducing car insurance rates to under $90 per month.

First, start with a car insurance comparison website – like our own website. Enter your ZIP code, then view the applicable offers in your region. Choose a few different car insurance companies you like, then complete a customized quote at each insurer’s official website.

The car insurance application form will ask basic information about your needs and demographic data. The form should also ask about your annual mileage. Input your mileage, then complete the form to get a quote.

What is Considered Low Mileage?

The average annual mileage in the United States is around 12,000 miles per year. When you lease a car, the terms of that car lease typically restrict you to around 10,000 to 12,000 miles per year.

However, the average annual mileage in the United States has creeped up in recent years. Many Americans have longer commutes than before. The average American now drives well over 1,000 miles per month for an average of 13,476 miles per year, according to the United States Department of Transportation.

So what does a car insurance company consider to be ‘low mileage’? A typical car insurance company application form will separate your mileage into different categories like:

  • 0 to 5,000 Miles Per Year: Low mileage
  • 5,000 to 10,000 Miles Per Year: Medium-low mileage
  • 10,000 to 15,000 Miles Per Year: Average mileage
  • 15,000+ Miles Per Year: High mileage

As you can see, you might be placed in the same category as drivers who drive thousands of miles per year – which is unfortunate for you, given that you only drive 150 miles per year.

Is there a way to get an even cheaper low mileage plan? We recommend four different options:

Talk to an Insurance Broker: An insurance broker specializes in finding customized rate plans for clients. A broker may know of a specific insurance company that specializes in insuring drivers with extremely low mileage.

Contact your Slug Insurance Company and Explain the Situation: Your insurance company might have extremely low mileage plans that it doesn’t advertise. Talk to them, explain the situation, and see if you can get a break on insurance premiums.

Look for Specialized Low Mileage Insurance Carriers: Some carriers specialize in insuring low mileage customers. 150 miles per year is considered extremely low mileage, but you might find a carrier that offers sharp discounts for driving under, say, 2,500 miles per year.

Drop All Unnecessary Coverage: We assume you’ve already done this. However, it’s worth taking a second look at your insurance documentation to make sure. Maintain only the basic minimum insurance requirements for the state of Michigan. Don’t get comprehensive or collision coverage. It’s unnecessary on an older vehicle.

Michigan drivers are required to have bodily injury coverage of $20,000 per person and $40,000 per accident along with $10,000 for property damage (written as a 20/40/10 plan). Drivers are also required to have personal injury protection coverage, property protection insurance, and a Michigan Catastrophic Claims Association (MCAA) fee. All of this is bundled into an ordinary Michigan car insurance policy.

If you can’t find insurance cheaper than $90 per month after using all of the options above, then you may be out of luck. Michigan drivers pay some of the highest rates for car insurance in the United States, and some things are just unavoidable. With a little research, however, you may be able to find an insurance carrier willing to offer rock-bottom rates since you’re driving only 150 miles per year.

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Other Answers

Answer 1

I touched upon this in one of my artilces…

5 ways to lower your auto insurance premiums

Look at point #5 –

Ask for low mileage discounts. If an auto insurance
company knows you won’t be on the road much, the chances of them having
to pay out for damages and medical bills is greatly reduced. If you
don’t think you will qualify for such discounts try carpooling, taking
the train or bus, or even riding your bike into work.

I recommend shopping around and asking different insurance agents.  Start by using the form at the top of this page 🙂

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