Auto Insurance Companies That Are Good for Low-Use Vehicles

If you drive less than 7,500 miles annually, compare quotes from auto insurance companies that are good for low-use vehicles. We recommend low mileage auto insurance from Geico Auto Insurance Company.

But plenty of other leading providers offer competitive rates to drivers that fall within specific auto insurance mileage brackets.

Below, compare affordable auto insurance companies that are good for low-use vehicles and learn how your mileage impacts your insurance rates.

After comparing auto insurance quotes from companies that are good for low-use vehicles, remember to enter your ZIP code into our free tool above to receive reputable rates from the best providers in your area.

What auto insurance companies are good for low-use vehicles?

Low-use vehicles are cars that are not driven often. According to the Federal Highway Administration, the average American drives 13,500 miles annually, or about 1,125 miles per month.

However, most insurance providers consider low-use to mean vehicles driven under 7,500 miles annually.

Drivers of low-use vehicles tend to spend less on auto insurance. They also don’t always need policies from the cheapest full coverage auto insurance companies, as investing in collision insurance may be unnecessary.

But the cheapest minimum liability auto insurance companies may not offer enough protection to cover your vehicle while it’s parked.

Purchase collision insurance to cover weather damage, auto theft, and other acts of nature while your car is parked.

Fortunately, we compiled a list of the top insurance companies for low-use vehicles. Geico Auto Insurance Company makes the top of our list.

Available in all 50 states, Geico offers a low-mileage discount, a usage-based insurance program called DriveEasy, and underwrites some of the cheapest average quotes across the country.

Read more: Best Car Insurance in Your State

This company is also great for students and younger drivers.

USAA Auto Insurance Company is second to Geico simply because it’s only available to military personnel and their families. However, the quotes are typically the cheapest available.

This company also offers low-mileage discounts. Plus, if you’re deployed, you can earn up to a 60% rate reduction. (For more information, read our “How to Get Cheap Auto Insurance for Low-Mileage Drivers“).

State Farm Auto Insurance Company is another ideal option for drivers of low-use vehicles. The company offers up to 30% off your rates with proof that you drove less than 7,500 miles annually.

Lastly, we recommend Travelers Auto Insurance Company in regions where the provider is active. Through the usage-based program, IntelliDrive, you can potentially save up to 30% on your annual premiums.

Whatever you do, don’t accidentally buy auto insurance from companies that are not good for low-use vehicles, especially since your driving habits could be saving you money.

Affordable auto insurance companies that are not good for low-use vehicles include 21st Century, Ameriprise, and SafeAuto.

Unfortunately, you should be aware that these companies only operate in a small number of states.

Plus, these providers do not offer low-mileage discounts or pay-per-mile and usage-based insurance programs.

Ultimately, to find the cheapest auto insurance company that is good for low-use vehicles near you, compare quotes from multiple providers online.

How does mileage affect your auto insurance rates?

Typically, the number of miles you drive per year directly impacts your auto insurance rates.

Mileage affects your insurance costs because the more time you spend on the road, the more you risk experiencing an accident.

Therefore, companies rely on your mileage during the underwriting process even in states where using non-driving factors to calculate insurance prices is illegal.

While there’s no specific telecommuting insurance, driving less often typically means cheaper premiums, and driving more than average leads to higher quotes.

Take a look at the table below to see how annual auto insurance rates vary by company based on your average yearly mileage.

Average Annual Auto Insurance Rates by Annual Mileage

As you can see, you can earn cheaper auto insurance for driving 25 miles a day from multiple different providers.

But Nationwide is an auto insurance company that is not good for low-use vehicles, as the provider does not charge different rates based on commute length or mileage. Same with American Family.

Auto insurance laws where you live also impact a company’s ability to charge different amounts depending on how often you drive.

Therefore, it’s possible that in your ZIP code, some of the companies listed above may not actually charge different rates based on mileage.

So if you rarely drive, auto insurance quotes from companies that are not good for low-use vehicles in your region are the companies that do not change rates based on mileage.

Still, know that other factors impact your auto insurance rates. Variables like your car make and model, age, where you live, your driving record, and your potential deductible limits also influence your annual premiums.

So, for example, expect Texas auto insurance rates to look different from California rates, just like cities and towns within a particular state also have different average insurance costs.

What is the difference between pay-per-mile and usage-based insurance?

If you want to buy auto insurance from companies that are good for low-use vehicles, consider enrolling in a pay-per-mile (PPM) or usage-based insurance program (UBI).

Check out details about the PPM and UBI options from our top recommended providers plus a few other companies in the table below.

Pay-Per-Mile and UBI Program Details by Auto Insurance Company

If you only want to purchase auto insurance by the mile, then go for a pay-per-mile program.

You’ll pay a low base rate per month, followed by a few pennies per mile driven. Only your monthly mileage is tracked, no other driving habits.

There is also a daily mileage cap, so any miles that are driven over that limit are typically free.

However, if you’re both a safe and low-mileage driver, consider usage-based insurance programs.

UBI programs use a telematics device or mobile app to track your mileage and other driving behaviors.

UBI programs typically track your driving for 30 days to 90 days. In the end, a discount is calculated based on how safe you drive.

The primary habits tracked by UBI programs include the time of day, hard braking events, speed, mileage, and phone usage or distracted driving.

Just check the privacy policy of UBI and PPM programs to ensure you’re comfortable with the details before enrolling.

Auto Insurance Companies That Are Good for Low-Use Vehicles: The Bottom Line

Overall, Geico, USAA, State Farm, and Travelers are great options for drivers of low-use vehicles.

But other providers may be able to offer you more competitive rates where you live.

Just be sure to avoid auto insurance rates from companies that are not good for low-use vehicles, meaning the rates are the same regardless of how often you drive.

Other ways you can save on auto insurance include taking a defensive driver course or paying for your coverage in full up-front.

You can also earn discounts, like good driver discounts, or multi-car and multi-policy discounts.

Plus, younger drivers can qualify for good student discounts or receive rate reductions for leaving their vehicle at home.

You’ve seen rates from auto insurance companies that are good for low-use vehicles, now compare coverage options from the best providers near you by entering your ZIP code into our free quote tool below.