Paying full-price car insurance when you barely drive feels like throwing money away. Many low-mileage drivers[^1] overpay hundreds of dollars annually for coverage they rarely use.
Yes, you need auto insurance even with minimal driving, but you should explore usage-based or pay-per-mile insurance options that can save 30-60% compared to traditional policies.
As an insurance advisor, I’ve helped many occasional drivers find the right coverage. Let me share what I’ve learned about optimizing insurance costs for low-mileage drivers.
How to Insure a Car You Rarely Drive?
Many clients come to me frustrated about paying regular insurance rates when their car sits in the garage most of the time.
For rarely driven cars, consider pay-per-mile insurance from companies like Metromile or Mile Auto, or usage-based insurance programs from traditional insurers that track actual driving habits.
Let’s explore your options:
Insurance Types for Low Mileage
-
Pay-Per-Mile Options
- Base rate plus per-mile charge
- Daily mileage caps
- Flexible billing
- Real-time tracking
-
Usage-Based Programs
- Driving habit monitoring
- Behavior-based rates
- Mobile app tracking
- Regular adjustments
Coverage Comparison
| Type | Best For | Potential Savings |
|---|---|---|
| Pay-Per-Mile | Under 6,000 miles/year | 40-60% |
| Usage-Based | Under 10,000 miles/year | 20-40% |
| Traditional + Low Mileage Discount | Under 12,000 miles/year | 10-25% |
Is Car Insurance Cheaper If You Don’t Drive Much?
I often explain to clients how their limited driving can translate into significant savings.
Yes, car insurance can be 30-60% cheaper for low-mileage drivers[^1] through specialized programs. Insurance companies consider less driving time as lower risk, resulting in lower premiums.
Here’s what affects your low-mileage rates:
Savings Factors
-
Primary Considerations
- Annual mileage
- Driving patterns
- Vehicle storage
- Usage purpose
-
Additional Factors
- Vehicle type
- Location
- Driving record
- Coverage needs
Savings Analysis
| Annual Mileage | Average Savings | Best Program Type |
|---|---|---|
| Under 3,000 | 50-60% | Pay-per-mile |
| 3,000-6,000 | 30-50% | Pay-per-mile |
| 6,000-10,000 | 20-30% | Usage-based |
| 10,000-12,000 | 10-20% | Traditional with discount |
What Is the Best Car Insurance for Barely Driving People?
After years of comparing options, I’ve identified the most cost-effective solutions for occasional drivers.
Metromile and Mile Auto offer the best value for very low-mileage drivers, while Progressive’s Snapshot and State Farm’s Drive Safe & Save work well for those who drive occasionally but unpredictably.
Let’s analyze the best options:
Program Features
-
Pay-Per-Mile Programs
- Precise mileage tracking
- Monthly billing
- Low base rates
- Flexible coverage
-
Traditional Programs
- Low-mileage discounts
- Bundle opportunities
- Standard benefits
- Established service
Provider Comparison
| Company | Program Type | Min Monthly Cost | Features |
|---|---|---|---|
| Metromile[^2] | Pay-per-mile | $29 | Real-time tracking |
| Mile Auto[^3] | Pay-per-mile | $19 | Photo odometer |
| Progressive | Usage-based | $45 | Behavior monitoring |
| State Farm | Usage-based | $40 | App-based tracking |
Do I Need Auto Insurance If I Don’t Drive?
This is a common question I receive from clients who own cars but rarely or never drive them.
Yes, you need auto insurance if you own a registered vehicle, even if you don’t drive it. Consider storage insurance or comprehensive-only coverage for vehicles that aren’t being driven.
Here’s what you need to know:
Non-Driving Coverage Options
-
Storage Insurance
- Comprehensive only
- Fire and theft
- Weather damage
- Vandalism protection
-
Minimum Requirements
- State regulations
- Lender requirements
- Registration needs
- Liability concerns
Coverage Requirements
| Situation | Required Coverage | Estimated Cost |
|---|---|---|
| Stored Vehicle | Comprehensive | $10-20/month |
| Occasional Use | Liability + Comp | $30-50/month |
| Seasonal Use | Full Coverage | $40-70/month |
| Unregistered | None | $0 |
Conclusion
Low-mileage drivers can save significantly on auto insurance by choosing the right program, whether it’s pay-per-mile, usage-based, or traditional coverage with discounts.
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[^1]: Explore tailored insurance solutions that can save you money if you drive less.
[^2]: Check out how Metromile can provide significant savings for infrequent drivers.
[^3]: Understand the unique features of Mile Auto that cater to low-mileage users.
