Is there an insurance mileage limit?
There is no insurance mileage limit, but underestimating mileage on your car insurance can result in an increase. Insurers ask for mileage to determine how much time you spend on the road and calculate auto insurance rates. You may get a low-mileage discount if you don't drive much.
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Michelle Robbins
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Michelle Robbins has been a licensed insurance agent for over 13 years. Her career began in the real estate industry, supporting local realtors with title Insurance. After several years, Michelle shifted to real estate home warranty insurance, where she managed a territory of over 100 miles of real estate professionals. Later, Agent Robbins obtained more licensing and experience serving families a...
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UPDATED: Nov 6, 2023
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 6, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our auto insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different auto insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- 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.
Table of Contents
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.
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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.
| Companies | Average Annual Rates for a 10 Miles Commute 6,000 Annual Mileage | Average Annual Rates for a 25 Miles Commute 12,000 Annual Mileage |
|---|---|---|
| USAA | $2,482.69 | $2,591.91 |
| Geico | $3,162.64 | $3,267.37 |
| State Farm | $3,175.98 | $3,344.01 |
| American Family | $3,401.30 | $3,484.88 |
| Nationwide | $3,437.33 | $3,462.67 |
| Progressive | $4,030.02 | $4,041.01 |
| Farmers | $4,179.32 | $4,209.22 |
| Travelers | $4,399.85 | $4,469.96 |
| Allstate | $4,841.71 | $4,934.20 |
| Liberty Mutual | $5,995.27 | $6,151.63 |
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.
Frequently Asked Questions
Is there an insurance mileage limit?
Yes, some insurance policies may have a mileage limit. This limit refers to the maximum number of miles you can drive your insured vehicle within a specific period, typically a year. If you exceed the mileage limit, it may affect your coverage or result in an increase in your premium.
How does an insurance mileage limit work?
An insurance mileage limit is typically set when you purchase your auto insurance policy. The limit is based on the estimated number of miles you expect to drive in a year. Insurance companies use this limit to assess risk, as the more you drive, the higher the chances of being involved in an accident. If you exceed the limit, your insurer may consider you a higher risk and adjust your premiums accordingly.
What happens if I exceed the mileage limit?
If you exceed the mileage limit stated in your policy, there can be a few consequences. Your insurance company may choose to raise your premium because you are considered a higher risk due to increased exposure to potential accidents. Additionally, your coverage may be affected, and your insurer could deny a claim if it occurs when you’ve exceeded the mileage limit. It’s important to review your policy and discuss any potential changes with your insurance provider.
How can I determine my annual mileage?
To estimate your annual mileage, you can consider the distance you typically drive on a daily basis and multiply it by the number of days you use your vehicle in a year. If you have a commute to work or school, you should factor in the distance as well. Keep in mind any additional trips or vacations you plan to take during the year. It’s essential to provide an accurate estimate to your insurer when purchasing your policy.
Can I update my mileage limit if my driving habits change?
Yes, you can typically update your mileage limit if your driving habits change. If you find that you are consistently driving more or less than initially estimated, it’s essential to inform your insurance provider. They can adjust your policy accordingly to ensure accurate coverage and premium calculations based on your updated mileage. Keep in mind that updating your mileage limit may result in adjustments to your premium.
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Michelle Robbins
Licensed Insurance Agent
Michelle Robbins has been a licensed insurance agent for over 13 years. Her career began in the real estate industry, supporting local realtors with title Insurance. After several years, Michelle shifted to real estate home warranty insurance, where she managed a territory of over 100 miles of real estate professionals. Later, Agent Robbins obtained more licensing and experience serving families a...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.