Latest news with #lowmileage
Yahoo
05-08-2025
- Automotive
- Yahoo
Car insurance options for low-mileage drivers
If you don't drive much, paying hundreds or more a month for car insurance can feel like a waste of money. You can't get rid of the insurance expense entirely, but you may have a way to trim your insurance costs. Requesting a low-mileage discount or switching to insurance designed for your limited driving habits could lower your premiums. This embedded content is not available in your region. Learn more: How car insurance works. The basics explained. Can you get low-mileage car insurance? Yes, you can get low-mileage car insurance. Several insurance companies have lower-cost programs for vehicle owners who log fewer hours behind the wheel. Each company sets its own rules regarding who qualifies as a low-mileage driver, how premiums are calculated, and the type of insurance offered. Types of insurance for low-mileage drivers There are three main types of car insurance programs for low-mileage drivers: Standard car insurance with a discount for low annual mileage. American Family Insurance, National General, Progressive, State Farm, Travelers, and others provide standard car insurance at cheaper rates for low-mileage drivers. Pay-per-mile insurance. Pay-per-mile car insurance has an adjustable premium based on how much you drive. Usually, you will pay a low base rate plus a per-mile rate. If your mileage is low, the sum of the two rate components can be cheaper than standard car insurance. Pay-per-mile insurance policies can provide the same coverage as standard insurance, but this may vary by provider. Allstate, Nationwide, and Mile Auto offer pay-per-mile insurance. Usage-based insurance (UBI), also called telematics insurance. UBI sets pricing based on your driving habits, including the number of miles you drive. If you don't drive a lot and drive safely, your rates with UBI coverage can be competitive. UBI providers monitor your driving behaviors and mileage with technology installed in your vehicle called telematics. Root and others offer UBI insurance. Learn more: How usage-based car insurance works How many miles a year is considered low mileage? Each auto insurance company sets thresholds for low-mileage discounts. Often, there are tiers. According to John Espenschied, agency principal at Insurance Brokers Group, insurance companies may characterize 7,500 annual miles driven as low mileage. But someone who drives 3,000 miles a year often gets a larger discount than another driver who drives 7,000 miles annually. You can also define low mileage as being less than the average miles driven. Average miles driven is estimated at roughly 11,000 to 14,000, depending on the source. Kelley Blue Book estimated the 2023 average mileage at 12,200 miles, based on total miles driven divided by the number of drivers. The Federal Highway Administration reported 11,106 average miles traveled by light-duty vehicles in 2023. How is mileage tracked? There are five ways an insurance company can track your mileage. Odometer photos. To maintain a low-mileage discount on standard insurance, you may need to submit photos of your car's odometer reading once a year or every quarter. Service records and claims. Auto dealers, oil change providers, and independent service shops may report work on your vehicle and odometer readings to national databases. Espenschied noted that insurance companies can access that data to determine how much you drive. Device installed in the car. Some insurance companies provide a device that plugs into your car's diagnostic port. The ports may be located under the steering wheel, near the center console, or under the dashboard. You can check your owner's manual to find the exact location. Connected car. Some modern vehicles have built-in technology that collects data on your driving and sends it to your insurance company. For example, some Toyotas made in 2018 or later can share driving data with Nationwide. Smartphone app. You may have the option to use a mobile app that automatically detects when you're driving and records mileage and other data. Who might want low-mileage insurance You may be a candidate for low-mileage insurance if: You work from home. You are retired. You have multiple cars. You live in a walkable city. You favor public transportation or bicycle riding over driving. In short, if you don't drive a car daily or take long trips, low-mileage insurance may be an option. Up Next Up Next How much does car insurance cost for low-mileage drivers? Espenschied estimated that driving less than 7,500 miles annually can lower insurance premiums by 5% to 15%, depending on the state and the insurer. Mileage example The table below shows how monthly insurance premiums can vary by annual mileage across different insurance companies. Quotes assume full coverage and a clean driving record. For this driver, Travelers and Progressive quoted lower rates for lower mileage, while Geico quoted the same rate for all mileages. Because many factors contribute to insurance pricing, your experience may be different. How to get a low mileage discount on your car insurance Know your mileage. You can estimate your annual mileage by checking your odometer weekly during three or four weeks of normal driving activity. Calculate your average weekly miles and multiply by 52 to approximate your annual miles driven. Ask your current provider. Contact your insurance company and ask if there is a low-mileage discount available. You may need to prove you don't drive much, with dated photos of your odometer. Ask your provider what information you'll need to provide and when the discount can take effect. Use a safe-driving app. Install a safe-driving app like Hum and use it to evaluate your driving habits. If the app gives you a good safety score, consider getting a quote for usage-based insurance. UBI is not advisable if you have risky driving habits, since it may cost more than standard insurance. Shop other providers. Your current insurance company may not have a low mileage discount, or the discount may not be competitive. To get the best rates, gather quotes from other companies. Look into standard coverage with discounts, pay-per-mile insurance, and — if you are a safe driver — usage-based insurance. Note that some online quoting tools may not request or consider your annual mileage. In that case, follow up with a broker or agent to ask about a mileage discount. Read more: How to get all the best car insurance discounts Low-mileage car insurance FAQs Is car insurance cheaper if you drive less? Car insurance may be cheaper if you drive less, depending on your car insurance company and where you live. Each insurance provider decides how important annual mileage is as a pricing factor in car insurance rates. Some treat it as a minor factor, and others weight it heavily. How much cheaper is low-mileage insurance? The potential savings for low-mileage driving can be 5% to 15%, according to Espenschied, of Insurance Brokers Group. Are hybrids good for low-mileage drivers? Hybrid cars deliver the biggest fuel efficiency gains in city driving conditions. On longer drives at steady speeds, hybrids rely more on fuel than electricity. Therefore, hybrids are suitable for low-mileage drivers who take short trips in urban areas but are less efficient for low-mileage drivers who only take occasional highway trips. What mileage is the cheapest for insurance? "There is not one cheapest mileage for insurance, but generally, the fewer miles you drive, the bigger the savings," said Espenschied. In other words, those who drive less than 3,000 miles per year can earn larger discounts than those driving 7,000 miles annually.
Auto Express
14-05-2025
- Automotive
- Auto Express
Car hunter: Help! I need a first car for under £10,000
Dear Auto Express, I need to find a low-mileage, small hatchback with less than 100bhp as a first car for my son. What does £10k buy? - Henry Parker, E-mail Few drives are as thrilling as your first. Passing your test and hitting the open road delivers a sense of freedom and excitement that's difficult to match. Yet those first few steps are an expensive business. Not only is there the cost of the car to consider, but car insurance premiums and running costs also have to be taken into account. Advertisement - Article continues below However, look carefully and you'll find a host of affordable small cars. For example, the Dacia Sandero was a bargain new and is even better value used. The Kia Rio offers a dash of style, is easy to drive and more recent examples will retain some of the brand's famed seven-year warranty for ultimate peace of mind. And if driving fun is at the top of your wish list, the Ford Ka+ deserves serious consideration. Here we take a closer look at three of the best used cars for a newly qualified driver with up to £10,000 to spend on their first set of wheels. For: Great value, eager performance, decent equipment Against: Not that stylish, low-rent cabin, short of rear room Skip advert Advertisement - Article continues below You'd struggle to call the Dacia Sandero glamorous, but a facelift in 2017 brought new LED lights and subtly smoother lines to the second-generation model. On the move, it feels predictable rather than exciting to drive, but its soft suspension serves up a cushioned ride. The Dacia's thrummy turbocharged 0.9-litre petrol engine is the best here, with peppy performance and excellent economy – although in insurance group 10, it's four higher than the Ford and Kia. For less than £7,000 you can buy an 18-plate 0.9 TCe Laureate with under 30,000 miles. Alternatively, if you don't mind a lower-spec model, these can be picked up for even less. Advertisement - Article continues below The Sandero's budget roots are most obvious inside, where you'll find lots of hard and scratchy plastics and a utilitarian design. On the other hand, it's solidly constructed and logically laid out, while the high-set driving position is enhanced by soft, yet surprisingly supportive seats. Comfort trim adds luxuries such as air-con and a reversing camera, plus an intuitive touchscreen infotainment system that offers sat-nav as well as easy smartphone connectivity and music streaming. Taller back-seat passengers will be a little cramped, but the well shaped 320-litre boot rivals models from the class above for carrying capacity. Skip advert Advertisement - Article continues below Used Dacia Sandero deals For: Looks great, easy to drive, excellent warranty Against: Not fun to drive, limited infotainment, firm ride The Mk4 Kia Rio helped the Korean firm take a big step upmarket, and its neat lines give it the most grown-up look here. Light controls make it the easiest to drive, even if there's little fun to be had. Still, the Kia is the most refined and relaxing car here despite having the firmest ride. Performance from its 1.25-litre engine is a little breathless, but it delivers an easy 45mpg and is mated to a slick five-speed manual. We found a 17-plate car in 3 trim with 26,000 miles on the clock which could be yours for around £9,500. Advertisement - Article continues below As with the exterior, the Kia Rio's interior looks and feels the most upmarket in this company, thanks to its slick, modern design and extremely solid build quality. The infotainment system is fairly basic, but at least there's Bluetooth and USB connection for easy smartphone pairing. Air-conditioning is also included, as are automatic lights and a multifunction steering wheel. A wide range of seat and wheel adjustment makes it easy to get comfortable, while the rear bench is the roomiest here. At 325 litres, the boot is even larger than the Dacia's, while a 60:40 split-fold back seat boosts versatility even further. Skip advert Advertisement - Article continues below Used Kia Rio deals For: Fun driving experience, loads of kit, low running costs Against: Not as quick as rivals, boot is the smallest here It's easy to spot the Ford's budget-car roots in its slightly ungainly styling. However, get the Ford Ka+ in the right trim and you'll get racy additions like alloy wheels and front foglamps. Based on the same chassis as the brilliant previous-generation Fiesta, the Ka+ has quick steering and agile handling, plus a surprisingly plush ride. And while the 1.25-litre petrol engine is down on power, it's very frugal and mated to a crisp five-speed manual. We found a 17-plate 1.2 Studio with 45,000 miles for £6,300. Climb aboard and it's immediately clear that despite the Ka+ budget roots, Ford has given this small run-around all the kit you're likely to use day-to-day including Bluetooth phone connectivity, cruise control, electric folding mirrors and windows. A dated dashboard design means the cabin doesn't look as upmarket as the Kia's, but it's robustly built and clearly laid out. The low- slung driving position is excellent, while the tall Ka+ almost matches the Rio for rear-seat space. Only the cramped 270-litre boot, with its high load lip, undermines the baby Ford's practicality. Used Ford KA deals Tell us which new car you're interested in and get the very best offers from our network of over 5,500 UK dealers to compare. Let's go… Find a car with the experts Not bothered by MoT advisories? That may be about to change Not bothered by MoT advisories? 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