The term low-mileage car insurance or limited-mileage insurance is a bit of a myth. Most insurance companies won't base their car insurance rate solely on mileage. In fact, many insurance companies ask about mileage and consider it, but they may not put much emphasis on it. One reason could be that drivers often overestimate and underestimate how much they drive.
As a result, most insurers don't offer pay-per-mile options or discounts for drivers with low mileage. No, Progressive doesn't offer any specific discounts for low mileage. However, progressive premiums do take miles into account, since rates are an average of 23% lower for customers who drive 7,500 miles a year than for customers who drive 15,000 miles a year, according to data from WalletHub. The age of your car may affect the overall insurance rate, but a higher or lower reading on the odometer isn't something insurers generally use to set rates.
Insurance companies recognize the impact of miles on insurance risk, but often don't offer the benefit to consumers. Many insurance companies will ask you how many miles you drive and will factor them into your car insurance rate. Progressive offers a multi-vehicle discount of up to 12% to customers who insure more than one car with the same policy. This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation, or exclusion that is expressly stated in any insurance policy.
The CFA is asking state legislators and insurance commissioners to demand that auto insurance rates be more closely linked to drivers' mileage. Auto insurers may not offer a direct discount for driving fewer miles, but some may offer usage-based insurance programs that could lower the rate as a reward for driving safely and less in general. Progressive car insurance rates are based on your driving record and experience, along with factors such as the type of car you drive, your zip code, your insurance history, and more. Yes, Progressive's insurance rates are competitive, as the company is one of the 10 cheapest auto insurers nationwide, according to an analysis by WalletHub.
