Has your car started collecting more dust than miles? If you’ve recently retired, transitioned to a work-from-home lifestyle, or simply changed your habits, your vehicle is probably seeing a lot less of the road.
What you might not realize is that this shift is a golden opportunity to save money. That’s right—driving less can directly lead to a lower car insurance premium. But there’s a catch: your insurer won’t know unless you tell them.
Let’s dive into why this is one of the easiest and most effective ways to reduce your insurance costs.
Why Does Mileage Matter to Insurers?
It all comes down to risk. Insurance companies are in the business of calculating risk, and one of the most straightforward metrics they use is how much you drive.
Think of it this way: the more time you spend on the road, the higher your chances of being involved in an accident. A person who commutes 50 miles a day in heavy traffic has a statistically greater risk of a fender-bender than someone who only drives to the grocery store once a week.
By driving fewer miles, you’re inherently lowering your risk profile. And in the world of insurance, lower risk should equal lower costs.
Beyond the Commute: Lifestyle Changes That Qualify
You don’t need a dramatic life overhaul to benefit. Even small changes can add up to significant savings. Ask yourself:
Did you retire? Your twice-daily commute is now a thing of the past.
Are you working remotely? Your “commute” is now a walk to your home office.
Using delivery services more? If you’re getting groceries, meals, and even medications delivered, that’s several fewer trips per week.
Carpooling or using public transport? If you’ve switched your primary mode of transport for work, your car is idle more often.
Did a child move out? If a young driver (especially one with their own car) is no longer on your policy, your household’s total mileage likely plummeted.
Using a neighbor or family member for errands? If someone else is now your go-to for doctor’s appointments or shopping trips, that’s less wear, tear, and mileage on your vehicle.
If any of these scenarios sound familiar, you’re a prime candidate for a low-mileage discount.
How to Get Your Well-Deserved Discount: A Step-by-Step Guide
Taking action is simple and could put hundreds of dollars back in your pocket each year.
Do a Quick Mileage Audit: Before you call, get a rough idea of your new annual mileage. Track it for a week or two and multiply it out. Most companies have specific brackets (e.g., under 7,500 miles per year). Being prepared with a number shows you’re informed.
Call Your Agent or Insurer: This is the most direct and effective method. Simply say, “My driving habits have changed significantly, and I’m now driving far fewer miles than when I first took out my policy. I’d like to review my policy and see if I qualify for a low-mileage discount.”
Be Prepared to Discuss Your Situation: They might ask why your mileage has decreased. Be honest! “I’m now working from home permanently,” or “I’ve retired,” are perfect explanations.
Ask About All Options: In addition to a standard low-mileage discount, inquire about these specific programs:
Usage-Based Insurance (UBI): Programs like Allstate’s Drivewise®, Progressive’s Snapshot®, or State Farm’s Drive Safe & Save™ use a small plug-in device or a mobile app to track your driving habits (mileage, time of day, braking, etc.). Safe, low-mileage drivers often see substantial discounts.
Pay-Per-Mile Insurance: Companies like Metromile are designed exclusively for low-mileage drivers. You pay a low base rate plus a few cents for each mile you drive. If your car is parked most of the time, this can be an incredibly cost-effective option.
FAQ: Your Low-Mileage Insurance Questions, Answered
Q: What if I underestimate my mileage?
A: It’s crucial to be accurate. If you significantly underestimate and later need to file a large claim, the insurer might investigate and could even deny the claim based on misrepresentation. When in doubt, give a slightly higher estimate.
Q: I only drive my car on weekends. Is that enough?
A: Absolutely! “Pleasure use” or “weekend driver” classifications often come with lower rates than a standard “commuter” classification.
Q: Are there any downsides to usage-based tracking?
A: Some drivers are wary of privacy. It’s important to read the terms to understand what data is collected. However, for many, the potential savings outweigh these concerns.
The Bottom Line: Don’t Be Shy, Speak Up!
Your car insurance shouldn’t be a “set it and forget it” expense. It’s a dynamic product that should reflect your current life situation. A simple, 10-minute phone call is all it takes to ensure you’re not overpaying.
You’ve already made the lifestyle change. Now, it’s time to let your wallet enjoy the benefits. Pick up the phone, contact your insurer today, and start driving your premium down.