Insurers price risk partly on exposure: the more miles you drive, the more chances you have to be in an accident.
How mileage tiers work
Many carriers group drivers into mileage bands, for example under 7,500 miles, 7,500-15,000, and above. Lower bands earn lower rates. The national average is around 12,000-13,000 miles a year.
Ways low mileage saves you money
- Low-mileage discount: ask if your carrier offers one.
- Pay-per-mile insurance: a low base rate plus a few cents per mile, ideal for under 7,000 miles a year.
- Usage-based programs: track mileage and driving habits for a discount.
Report changes honestly
If you start working from home or commuting less, update your estimated mileage. Underreporting to get a lower rate can cause problems at claim time, but an honest reduction can genuinely lower your premium.