Car Insurance for Low Mileage Drivers

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low mileage drivers

If you have a car, but don’t drive it very often, then this article may be for you. Auto insurance rates can vary based on your driving habits and the frequency of your vehicle usage. If you’re not using it much, then why pay more? We’ll compare quotes from Canada’s top insurance companies to help you find the best rate for your low mileage vehicle.

If you’re a low mileage driver, then you will most likely save money on your car insurance rates! The logic is that if you have a car with low mileage, then the probability of getting in an accident is lower. This will result in cheaper insurance premiums for those who drive less daily.

Yes, if you drive less than average. The more you drive the higher your risk of collision is and hence premiums will be higher to compensate for this increased risk.

How many miles is considered low mileage for insurance?

Some car insurance companies consider people who drive less than 12,000km per year to be low-mileage drivers. Other companies have different standards for what qualifies as a “low mileage” driver; some say anything under 20,000km and others 15,000. Low-mileage drivers will not have to pay as much for car insurance. Some car insurance companies offer low mileage discounts of up to 40% on low mileage policies, and others may offer you a discount if your vehicle is considered “very low mileage”.

What factors influence car insurance premiums?


The older you are, the cheaper your car insurance premiums will be. Young drivers have been shown to be involved in a disproportionate number of accidents when compared with their adult counterparts. You’ll typically pay less for auto coverage if you’re over 25 years old than if you’re under 21 and living on your own without an established driving record.


Women have traditionally been shown to be safer drivers than men, and are thus offered lower rates.

Driving history and experience

The more years of driving experience you have, the better your record is. You’ll also pay less for car insurance coverage if it’s been a while since you’ve had an accident or moving violation conviction on your records than someone with a recent history of accidents and violations.

Where you live

Insurance premiums can vary greatly depending on where you live. For instance, if you reside in a big city with many pedestrians and drivers then there is more potential for accidents to happen or theft.

Marital status

If you’re married and your spouse has a good driving record, then your auto insurance premiums may be lower.

The type of car you drive

The brand, model, and year of your vehicle along with its safety features and engine specifications could influence your auto insurance premiums. If you’ve modified your vehicle (ie. suspension upgrades, turbochargers) without notifying your insurance company, they have the grounds to deny your claims.

How do insurance companies know your vehicle mileage?

Your car VIN is recorded each time you take it for maintenance or repair to the shop. This information could be accessed by your insurance company if they want to, and prompt them to increase premiums in case of false facts about mileage provided during an insurance policy application process.

Easiest ways to lower your mileage

Lowering your annual mileage can save you a lot of money. Less time spent at the gas station and lower risk of accidents! Not only that, but it definitely has a better effect on the environment. Keeping your car at home means fewer emissions and less runoff in our drainage systems. If you’re looking to save money on your car insurance with a low mileage discount or drive less because of the environment, then here are some of the easiest ways to lower your mileage:

  • Walk or bike: Traveling by foot or bicycle is a great way to get around. Not only will you be saving money, but also helping the environment!
  • Carpool: If you’re lucky enough to have friends in your area that are willing and available to give rides, then offer them some gas money for their troubles. This can save up on gas as well as lower environmental emissions from traffic congestion when everyone shares one car instead of two (or more).
  • Public transit: Larger metropolitan areas have public transportation that can be a great way to get around.

Which car insurance companies offer low mileage discounts?

allstate logo


Allstate’s Milewise pay-per-mile insurance policies encourage drivers to improve their habits for a lower rate. Using the plug-in device, Allstate records your driving patterns and mileage in order to determine any monthly charges per mile driven. Unlike competitors like Root or Noblr which are app-based only, this traditional company offers both an established base price as well as a more flexible charge that can change depending on how you drive – with feedback via apps!


Drive Safe & Save is State Farm’s discount program. Unlike some of the other programs we’ve mentioned, this discount can be renewed based on your overall driving behavior every policy period which usually lasts six months! This gives you a chance to improve your habits over time and use a beacon that attaches to your rearview mirror with an accompanying phone app for measuring these behaviors and mileage. Motorists save five percent just by signing up but have potential savings up to 30-50% off their premiums if they are safe drivers.

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