What Is a Low-Mileage Discount on Car Insurance?
In a Nutshell: Drivers who travel fewer than 7,500–10,000 miles per year can save 5–15% through a low-mileage discount. Some insurers offer specialized pay-per-mile programs (like Nationwide SmartMiles or Allstate Milewise) where you pay a base rate plus a per-mile charge. Low-mileage drivers can save 30–50% with pay-per-mile programs.
Low-Mileage Discount Savings
| Annual Mileage | Typical Discount | Examples |
|---|---|---|
| Under 5,000 miles | 10–15% | Remote workers, retirees |
| 5,000–7,500 miles | 5–10% | Commuters under 15 miles/day |
| 7,500–10,000 miles | 0–5% | Average commuter |
| 10,000–15,000 miles | 0% (baseline) | Standard commuter |
| 15,000+ miles | +10–20% (surcharge) | Long-distance commuters |
Key Takeaways
- Low-mileage discount saves 5–15% for driving under 7,500 miles/year
- Pay-per-mile programs (Nationwide SmartMiles, Allstate Milewise) save 30–50% for very low-mileage drivers
- Telematics programs combine low-mileage with safe driving for bigger savings
- Retirees, remote workers, and city dwellers benefit most
- Provide accurate mileage at renewal to ensure you're getting the right discount
Last updated: July 2026
Disclaimer: This article provides general information about low-mileage discounts. Eligibility and savings vary by insurer and state. Always verify with your specific insurance provider.