Best Auto Insurance for Very Low Mileage

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Kookaburra
Posts: 354
Joined: Thu Apr 02, 2020 11:14 pm

Best Auto Insurance for Very Low Mileage

Post by Kookaburra »

I have one car and I only drive about 1,000 miles per year. I have auto insurance through Safeco, and despite getting the “low mileage” discount (amongst several other discounts), my annual premium is $1,100. So I’m paying over $1 per mile, which doesn’t quite seem right. Nor the fact that it keeps going up 12% per year despite a flawless driving record.

First Question: Anyone else in a similar situation? If so, would you mind sharing what your premium is.

Second Question: Does anyone have recommendations for an auto insurance option that is better suited towards such low mileage driving?
jjface
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Re: Best Auto Insurance for Very Low Mileage

Post by jjface »

It will vary a lot by state, type of car, your previous history etc so hard to say. Also depends on your coverage that you select. So someone else's premium won't be relevant.

There are drive safe programs that will track your driving and habits using some electronic device. Those usually will take further advantage of low mileage. I use one with state farm and get about $150 off my semi annual premium.
sport
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Re: Best Auto Insurance for Very Low Mileage

Post by sport »

A good place to start would be the company where you have your homeowners/renters insurance. Having multiple policies with one insurer generally gets you a discount on each of them.
nerdymarketer
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Re: Best Auto Insurance for Very Low Mileage

Post by nerdymarketer »

Try metromile.com, you pay a small flat fee plus pennies per mile driven. Never used them myself but heard good things about them.
jjface
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Re: Best Auto Insurance for Very Low Mileage

Post by jjface »

Nationwide also has "smartmiles" which is a pay per mile type insurance like metromile
sixty40
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Re: Best Auto Insurance for Very Low Mileage

Post by sixty40 »

I have Geico and they seem to accommodate. When my kids went away to college, more than 100 miles away, Geico lowered their rates from about $1100 to around $400. They were still covered when they came home for holiday or break. Many insurance companies give no breaks for cars less driven.
JimmyC
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Re: Best Auto Insurance for Very Low Mileage

Post by JimmyC »

I quoted metromile for a car that sees about 1-2k miles a year AT MOST. Their monthly base fee (before any per mile fees) was more than the same coverage through Progressive regardless of miles.

YMMV, this is in WA state. Just shop around and take the best deal you can find.
talzara
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Re: Best Auto Insurance for Very Low Mileage

Post by talzara »

Kookaburra wrote: Sat Apr 11, 2020 9:53 pm I have one car and I only drive about 1,000 miles per year. I have auto insurance through Safeco, and despite getting the “low mileage” discount (amongst several other discounts), my annual premium is $1,100. So I’m paying over $1 per mile, which doesn’t quite seem right.
Traditional auto insurance policies have very small discounts for low mileage. Safeco's discount is 0% at 8,000 miles a year, and it goes up to 15% at 1 mile a year.

Pay Per Mile (PPM) insurance is the best option for very low-mileage drivers. You must install a tracking device in your car, which will report your mileage to the insurance company. PPM policies charge a fixed rate plus a per-mile rate. The fixed rate is 10-40% of a traditional policy, so the discount is as high as 60-90%.

The most widely available PPM policies are Metromile, Allstate Milewise, and Nationwide SmartMiles. However, PPM policies are only sold in some states. They are not available at all in many states.

Usage-Based Insurance (UBI) is the next best option for very low-mileage drivers. UBI policies track your driving habits, so the insurance companies promote UBI as a way for good drivers to save money. However, they do not advertise that mileage is one of the most important factors in UBI. The UBI low-mileage discount goes as high as 30-50%.

UBI policies are available at most insurance companies: State Farm Drive Safe & Save, Progressive Snapshot, Allstate Drivewise. UBI policies are priced prospectively, so you may have to wait a few months for the discount to be applied.
talzara
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Re: Best Auto Insurance for Very Low Mileage

Post by talzara »

sport wrote: Sat Apr 11, 2020 10:16 pm A good place to start would be the company where you have your homeowners/renters insurance. Having multiple policies with one insurer generally gets you a discount on each of them.
The multi-policy discount is only about 10% on auto insurance. It is much smaller than the low-mileage discounts on a PPM or UBI policy.

The average car in the United States is driven 13,000 miles a year. The OP is only driving 1,000 miles a year. If a PPM policy is available, it could be worth giving up the multi-policy discount.
talzara
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Re: Best Auto Insurance for Very Low Mileage

Post by talzara »

sixty40 wrote: Sun Apr 12, 2020 9:53 am I have Geico and they seem to accommodate. When my kids went away to college, more than 100 miles away, Geico lowered their rates from about $1100 to around $400. They were still covered when they came home for holiday or break.
That is the child away from home discount. That is not the low-mileage discount, which is a separate discount.

GEICO does not offer PPM or UBI at all, but it tends to price aggressively. These are traditional policies, so the low-mileage discount is relatively small, but the aggressive pricing could make up for it.
talzara
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Re: Best Auto Insurance for Very Low Mileage

Post by talzara »

JimmyC wrote: Sun Apr 12, 2020 9:58 am I quoted metromile for a car that sees about 1-2k miles a year AT MOST. Their monthly base fee (before any per mile fees) was more than the same coverage through Progressive regardless of miles.

YMMV, this is in WA state. Just shop around and take the best deal you can find.
Your base rate at Metromile should be about 50% of Progressive's rate. Did anything change on your credit report, CLUE report, or driving record? Are there any errors?

In Washington state, Metromile's rate structure is a me-too of Progressive's rate structure. Since rate filings are public domain, small insurance companies often copy large insurance companies' rate structures. There are some differences in the overall rate level, but not enough to make Metromile's base rate higher than Progressive's rate.
Jack FFR1846
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Re: Best Auto Insurance for Very Low Mileage

Post by Jack FFR1846 »

Things that really matter:

zip code
driving record
age
marital status
driving record of others in your household
car

Chances are that some of these are greatly influencing your rates. I have very high liability limits, full collision, comp, etc on a brand new Subaru and it costs me $500 a year in Mass (known to be a high cost state). No low mileage discount, although I do have those on some of my other cars.
Bogle: Smart Beta is stupid
ronno2018
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Re: Best Auto Insurance for Very Low Mileage

Post by ronno2018 »

I just did Allstate milewise and got $69 a month quote for 2000 miles a year on a 2018 Kia Niro. Which is compared to my $114 Geico policy currently. This is in urban Pacific Northwest locale.
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