Is there an insurance mileage limit?

• Most auto insurance companies don’t limit how many miles you drive
• You will be asked to estimate your annual mileage when applying for auto insurance
• Lower mileage usually means a lower insurance rate

There are many reasons some drivers put plenty of miles on their cars. Some drivers have long work commutes, while others may spend weekends going on long road trips. If this sounds like you, you may be wondering if there is an insurance mileage limit.

The simple answer is that when you want to know how to buy auto insurance, most auto insurance companies won’t limit you based on how many miles you drive. However, each company has a set of annual mileage brackets that help determine your car insurance rate.

If you drive fewer miles than the average driver throughout the year, you will likely receive a lower insurance rate. How mileage affects car insurance rates varies from company to company. The area in which you live also plays a factor.

Learn more about mileage limits, how mileage can affect auto insurance rates, and more by reading our helpful guide, but before learning more about if there is an insurance mileage limit, use our free tool above to compare rates.

How are mileage and car insurance-related?

When you go through the process of purchasing auto insurance, most companies will ask you to give an estimate of how many miles you drive per year, on average. Why does insurance ask for mileage? This question often causes some people to stress about getting the number exactly right. However, in most cases, it won’t affect your premium if the auto insurance mileage limit is exceeded. So, how many annual miles should I say I drive for insurance? An annual mileage calculator can help.

While you won’t get in trouble if you go over an estimate, it is important to be as accurate as possible when giving your mileage estimate. Giving a lower projected mileage in hopes of receiving a discount is never a good idea. When you give a more accurate mileage estimate, your insurance agent can give you an accurate premium.

Can insurers check mileage? Your insurance company may periodically ask for your mileage. What happens if you go over the mileage on your insurance? Lying about mileage on car insurance is a form of fraud and could get you into a lot of trouble.

In fact, there is a California annual mileage verification system that requires insurance companies to accurately check each vehicle’s annual mileage using the odometer. This means that, yes, insurers can check your mileage.

It’s worth noting that some companies also offer usage-based insurance, in which they determine your rate based specifically on your individual needs. It’s not always a good option for cheaper auto insurance for commuters, as it requires low mileage to save. Low-mileage insurance or limited mileage car insurance is better for people who don’t drive much.

Read on for information on how mileage can affect your auto insurance rates.

How does mileage affect auto insurance rates?

As mentioned in this article’s introduction, lower mileage usually means a lower car insurance rate. This is because driving more means more wear and tear to your vehicle. Additionally, the more you are on the road, the higher the risk you will be in a car accident. These are things car insurance companies consider when determining your rates.

The differences in rates between high-mileage drivers and low-mileage drivers can depend on the auto insurance company you decide to go with, as well as the state in which you live. Below is a chart that shows the average annual auto insurance rates based on mileage.

Average Annual Auto Insurance Rates by Commute Length

As you can see, there is a major difference between states on average miles driven. Low mileage in one state could mean something completely different in another.

Learn about the discounts available for low-mileage drivers in the next section.

Are there discounts for low-mileage drivers?

There are many reasons one might not put as many miles on their car as the average driver. They may work from home, ride a bike to work, or something similar. Either way, if you are one of these low-mileage drivers, then you may want to stay informed of the relevant auto insurance discounts for which you are qualified.

On average, low-mileage drivers pay less than high-mileage drivers, but what makes you a low-mileage driver? Well, for most car insurance companies, someone that drives less than 7,500 per year is considered a low-mileage driver. However, as will most determining factors, this differs based on the auto insurance company. The Geico low-mileage discount will differ from other companies.

Some states, including California, offer a larger difference between high and low mileage driver rates than others.

Are there mileage limits for rental cars?

Many people ask if there are insurance mileage limits on rental cars, including those from Enterprise, Budget, and Hertz. There are a number of different factors that determine mileage limits for rental cars.

Usually, this is based on the individual’s needs and what they discuss with the rental agency beforehand. Also, using the insurance a car rental agency offers as opposed to your own auto insurance can affect the mileage limit.

If you are driving the rental within one state, then many car rental companies allow for unlimited mileage. However, driving into another state could cause an increased rate or something called a mileage charge. Some companies will also charge based on mileage driven over the weekend.

The best way to get the best rate per mile on your rental vehicle is to determine your specific needs and discuss them with the rental agency.

As you can see, when it comes to most auto insurance policies, there is no mileage limit. However, you should always give the best estimate of your annual mileage rate that you can and ask your insurance company about discounts offered to low-mileage drivers.

Now that you know more about if there is an insurance mileage limit, compare auto insurance quotes today.