Best Car Insurance for Low Mileage Drivers in 2025

Introduction

Car insurance can be one of the most significant recurring costs for vehicle owners. But what if you don’t drive your car that often? Whether you’re retired, work from home, use public transportation regularly, or simply don’t take long road trips, being a low-mileage driver has its perks—especially when it comes to car insurance.

In 2025, many insurance companies have introduced policies specifically designed for low-mileage drivers. These plans reward drivers who put fewer miles on their cars each year with lower premiums and usage-based rates. This article explores the best car insurance options for low-mileage drivers, the benefits of pay-per-mile coverage, and tips to maximize your savings.

What Is a Low-Mileage Driver?

A low-mileage driver is generally defined as someone who drives less than 7,500 to 10,000 miles per year. Insurance providers consider these drivers less likely to get into accidents, which makes them lower risk. As a result, insurance companies often offer discounts or tailored policies that reflect this reduced risk.

Why Low Mileage Affects Your Insurance Premium

Car insurance rates are based on various factors, including:

• Driving history

• Location

• Type of vehicle

• Age and gender

• Credit score (in some states)

• Annual mileage

Insurance companies believe that the less time you spend on the road, the lower your chances are of being involved in a collision. Therefore, low-mileage drivers may qualify for pay-as-you-drive (PAYD) or pay-per-mile policies, which can offer significant savings.

Top Car Insurance Options for Low Mileage Drivers in 2025

Here are the best car insurance companies for low-mileage drivers this year, based on price, coverage options, technology, and customer satisfaction.

1. Metromile

Best for: True pay-per-mile insurance

• How it works: You pay a low base rate plus a few cents per mile.

• Technology: A small device installed in your car tracks your mileage.

• Example: $29/month base rate + 6¢/mile.

• Best for: People who drive under 8,000 miles annually.

Pros:

• Transparent pricing

• Great for city dwellers

• Accurate tracking

Cons:

• Not available in all states

• May not be cost-effective for occasional long trips

2. Mile Auto

Best for: Privacy-focused low-mileage drivers

• How it works: Similar to Metromile, but you send monthly photos of your odometer instead of installing a tracker.

• No tracking device needed

• Great for: People who want control without being monitored.

Pros:

• No hardware required

• Competitive rates

• Simplicity and privacy

Cons:

• Manual photo submissions

• Availability still limited to select states

3. Nationwide SmartMiles

Best for: Reliable insurer with usage-based plans

• How it works: Monthly rate includes a base plus a variable cost based on miles driven.

• Added benefit: Comes from a trusted national provider.

• Tech used: A plug-in device or mobile app.

Pros:

• Large network and support

• Affordable for light drivers

• Roadside assistance options

Cons:

• Fees for device non-return

• Not ideal for those with fluctuating mileage

4. Allstate Milewise

Best for: Customizable pay-as-you-go insurance

• How it works: Charges a daily rate plus a per-mile rate.

• Includes: Allstate’s standard policy features like accident forgiveness and deductible rewards.

Pros:

• Nationwide coverage

• Strong mobile app

• Big brand support

Cons:

• Slightly higher base rates

• Not suitable for unpredictable drivers

5. Root Insurance

Best for: Low-mileage and good driving behavior

• How it works: Root uses your smartphone to monitor driving habits including speed, braking, and mileage.

• Low mileage + safe driving = big discounts

Pros:

• Great for safe, infrequent drivers

• Modern app-based platform

• Quick signup process

Cons:

• No agents or in-person support

• May deny coverage if test driving period isn’t ideal

Comparing Traditional vs. Pay-Per-Mile Insurance

 

How to Choose the Right Insurance as a Low-Mileage Driver

Before signing up for a pay-per-mile policy, ask yourself the following:

1. How much do I drive monthly or annually?

   • Use your odometer or tracking apps to find out.

2. Do I mind using a tracker or mobile app?

   • Some companies require it; others use photos.

3. Are pay-per-mile policies available in my state?

   • Coverage varies by region.

4. Do I drive the same amount each month?

   • Some policies penalize sudden increases in mileage.

5. Do I qualify for other low-mileage discounts?

   • Even traditional policies may offer discounts for low usage.

Other Ways Low-Mileage Drivers Can Save

Besides switching to usage-based plans, consider these options:

• Bundle home and auto policies

• Maintain a clean driving record

• Increase your deductible (if you’re confident you won’t file often)

• Drop unnecessary coverage on older vehicles

• Ask for a low-mileage discount specifically

• Shop around at least once a year

 

Final Thoughts

Being a low-mileage driver in 2025 can lead to significant savings on your car insurance. With more insurers recognizing the value of pay-per-mile and usage-based policies, now is the perfect time to re-evaluate your coverage. Whether you choose Metromile’s pure pay-per-mile model or Nationwide’s hybrid plans, you can enjoy fair pricing based on how much you actually drive.

Take a moment to compare quotes, review your driving habits, and consider switching to a policy that rewards you for putting fewer miles on the road.

Summary Table – Top Picks for Low-Mileage Car Insurance 2025