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Having a car insurance policy that suits the way your drive is important to keep premium costs low.
If you don’t drive very often and don’t go far when you do, you can take advantage of cheaper low-mileage insurance designed for people just like you.
Find out what this entails and if you qualify with our guide to low-milage car insurance.
Low-mileage insurance does what it says on the tin – it’s car insurance for low-mileage drivers, people who drive fewer miles than average each year.
The great benefit of low-mileage insurance is that it’s cheaper than standard car insurance. Low-mileage insurance is cheaper because, from an insurer’s point of view, the less time a driver is on the road the less risk of being involved in something that would trigger a claim on the policy.
If you’re driving 30,000 miles a year, it makes sense (at least in the insurer’s view) that you are more likely to be in an accident than someone driving 5,000 miles a year. Less risk equals lower insurance costs.
For petrol cars, the average amount of miles driven in 2022 was 6,000 miles, while for diesel, it was 7,900, according to the Department for Transport. About 2,200 miles on average were spent commuting, while 4,100 miles were spent driving for other private reasons.
The total average mileage of UK car drivers, in both private and company vehicles, was 6,600 in 2022. If you drive a lot less than that, you could be eligible for low-mileage car insurance.
Insurers don’t publish details of their threshold for low mileage. In general, insurers will use the government’s average annual mileage figures as a guide, then set their level below that as they see fit.
So, as a rule of thumb, if you are driving far fewer miles a year than the official UK average, you’ll probably qualify for low-mileage insurance.
Certain groups of people are more likely to qualify for low-mileage car insurance. This is because their lifestyles and work patterns mean they are traveling fewer miles a year than the average driver.
| Who low-mileage insurance is for | Reason |
|---|---|
| Students | Students typically live close to their school or university campus most months of the year while studying, keeping journeys short |
| Retired people | Retired people often qualify for car insurance for low-mileage seniors. A big chunk of driving for many people is commuting to and from work, but not for retired people. They may also be less active and therefore have less car travel |
| People who work from home | Not commuting cuts out a large portion of driving for people who work from home |
| City dwellers | Living in a city gives people more access to reliable, frequent public transport, which can significantly reduce the number of miles they drive a year |
| Classic car owners | Classic car owners may only take their car out for special occasions or Sunday drives |
| Multiple-car households | Households with more than one car may have a main vehicle and one they use far less often that has much lower mileage |
If you are looking for cheaper car insurance but don’t think low-mileage car insurance is right for you, you may want to consider pay-as-you-go car insurance.
Pay-as-you-go car insurance, also known as pay-per-mile insurance, is like low-mileage insurance in that it can reduce the cost for people who don’t drive very far or very often. But there are some key differences.
Pay-as-you-go car insurance charges you for every mile or hour you drive. There is also a yearly or monthly fee to cover the car for theft or damage while it’s parked.
The insurer will fix a tracker to your car, which will tell them how many miles you drive. They will then charge you based on that data.
Most vehicles are eligible for pay-as-you-go insurance. But, according to the AA, you may struggle to get it if your car:
Low-mileage insurance is calculated differently by every insurer. Each will have their own level set at what they consider ‘low’ mileage. For a rough idea, however, the government’s figures on average annual mileage are a good ballpark – for 2022, the average yearly mileage was 6,600 miles. If you’re driving a lot less than that per year, you probably qualify for low-mileage insurance.
When you contact an insurer for a car insurance quote, whether by phone or online, using a comparison site, one of the first things they will ask for is your average yearly mileage.
It’s important to be honest when you answer this question and be as accurate as possible. If you get low-mileage car insurance fraudulently, in the best-case scenario, you will have to pay extra for your insurance. In the worst-case scenario, you won’t be covered in the event of a claim.
A good way to get an accurate figure for your yearly mileage is to check your last few MOT certificates. They will give details of your current mileage each time your car was tested. You should be able to find these mileage figures in your car’s log book.
Because every insurer will ask for your mileage estimates when you go for a quote, it’s a good idea to have them on hand even if you’re not aiming for low-mileage car insurance, so you’re in a good position to shop around for the best deal.
Maybe. Drivers aged under 25 are classified as ‘young drivers’. This puts them into a higher risk category than older drivers in the eyes of car insurers. High-risk drivers may have fewer available car insurance options than older or low-risk drivers.
That said, driving fewer miles, even as a young driver, should lower your insurance costs. This is because insurers consider people who don’t drive very often or very far at less risk of getting into an accident that would lead to a claim.
All car insurance companies will want to know your age and average yearly mileage when you go to them for a quote. On a comparison website, for example, once you’ve entered those details, you’ll only be shown car insurance deals available for your age, which may include low-mileage options.
Low-mileage car insurance is only one way to keep the cost of your car insurance down. There are other tactics that make you look like a safer bet to insurers and, in doing so, get a better shot at cheap car insurance. For instance:
