Key Takeaways
- U.S. drivers average 13,476 annual miles per year, according to 2022 data from the Federal Highway Administration (FHA)
- Male drivers average over 5,400 more miles per year than female drivers. (FHA)
- Drivers between the ages of 35 and 54 average the highest rate of annual mileage per year at 15,291 miles (FHA)
- California law requires carriers to collect annual mileage readings from drivers every three years.
Annual mileage is a key factor insurance companies use to asses risk and set insurance rates. The more miles a driver spends on the road, the higher the risk of being involved in a car crash, and vice versa. Other factors, such as usage and location, also play a part in your insurance premium, and your annual mileage tends to change throughout the different stages of your life. Bankrate’s insurance editorial team breaks down how and why your mileage can affect your car insurance rate so you can decide what car insurance policy is right for you.
Does annual mileage affect car insurance rates?
Yes, your average miles driven annually impact car insurance rates, but how much can vary significantly depending on your state, vehicle usage and insurance carrier. Generally, the less you drive, the lower your car insurance rate may be. When you apply for coverage, whether online or through an agent, you will be asked to estimate how many miles you drive on an annual basis. The average American drives 13,476 miles per year, according to the Federal Highway Administration (FHA).
The reason annual mileage affects car insurance is that it predicts your risk of filing a claim. For instance, infrequent drivers often pay less for car insurance because there is a lower risk of them getting into an accident. On the other hand, if you drive 50 miles per day, your risk of a collision might increase significantly.
How average miles driven per year is calculated
You might be wondering how car insurance companies know how many miles you drive per year. Usually, they rely on the honor system, especially when first signing up for an insurance policy. However, many insurance companies send out annual mileage request forms every few years to track the true annual mileage of their policyholders. Drivers who do not return the form risk having their yearly mileage increased by their carrier, which results in a higher car insurance rate.
Drivers enrolled in a telematics program or pay-per-mile car insurance automatically have their annual mileage tracked through the mobile app or device provided by the carrier. Insurance companies may also get mileage updates through insurance photo inspection sites such as CARCO and other service records.
Car insurance mileage brackets
Insurance companies categorize drivers into car insurance mileage brackets to help determine their risk levels. Overall, drivers are classified as low, average or high mileage categories, but rate and mileage vary within those ranges. How each carrier assigns risk related to annual mileage varies, but most carriers have similar mileage breakdowns. The chart below will give you a good idea of how your carrier may view annual mileage.
| Overall annual mileage brackets | Annual mileage sub-brackets | Typical driver type |
| Low annual miles: 0 – 7,500 | 0 – 3,000 3,001 – 5,000 5,001 – 7,500 |
Retirees, remote workers or people who prefer to use public transportation or ridesharing |
| Average annual miles: 7,501 – 15,000 | 7,501 – 10,000 10,001 – 12,000 12,001 – 15,000 |
Drivers who commute to work or school and/or have routine errands |
| High annual miles: 15,001 and above | 15,000 – 18,000 18,001 and above |
Drivers with long commutes or use their vehicles for business, such as realtors and rideshare drivers |
Average annual miles per driver by age group
| Age | Average annual miles for males | Average annual miles for females | Average annual miles per age group |
| 16 – 19 | 8,206 | 6,873 | 7,624 |
| 20 – 34 | 17,976 | 12,004 | 15,098 |
| 35 – 54 | 18,858 | 11,464 | 15,291 |
| 55 – 64 | 15,859 | 7,780 | 11,972 |
| 65+ | 10,304 | 4,785 | 7,646 |
| Average | 16,550 | 10,142 | 13,476 |
Source: U.S. Department of Transportation, Federal Highway Administration, last updated May 31, 2022
California’s annual mileage law
In California, carriers can require drivers to submit mileage estimation forms every three years. This form asks for an estimation of the next year’s mileage and may request supporting documentation if the estimate is unusually low. Failure to return the form before the policy renewal can cause insurance companies to update the annual mileage to the state average, causing a policy increase.
How commuting impacts car insurance
Vehicle usage is another question asked in car insurance applications. The risk associated with how you use your vehicle also impacts your auto insurance rate. Drivers who travel far distances to work usually pay higher car insurance premiums than drivers who travel a few miles to work. Not only are those drivers spending more time on the road, but if they are commuting into a densely populated area or city, there could be a higher chance of an accident occurring.
Since annual mileage can impact the hidden cost of vehicle ownership, it’s essential to stay on top of any life events that may affect the number of miles you put on your vehicle. Moving, changing jobs or even switching to a full or partial remote work schedule could increase or decrease your yearly miles.
Most drivers use their vehicles to commute to work or school. Your insurance agent may ask you to calculate how many miles it is to work or school one way to generate your base commuting miles. Below, see how various commutes can impact your annual mileage.
Standard commute to work or school:
- 10 miles one way, five days a week = 5,200 miles per year
- 15 miles one way, five days a week = 7,800 miles per year
- 30 miles one way, five days a week = 15,600 miles per year
Now, see how the annual mileage can change for a driver who chooses to carpool or can work from home two days a week.
Carpool or partial remote work-from-home schedule:
- 10 miles one way, three days a week = 3,120 miles per year
- 15 miles one way, three days a week = 4,680 miles per year
- 30 miles one way, three days a week = 9,360 miles per year
Other vehicle usage designations
Your vehicle can be used for purposes other than commuting. Pleasure use is a common option for drivers who do not work or are retired. Farm use and carpooling options may be available and can help lower your rate. For some drivers, business use or ridesharing may be more appropriate, but they can require an additional endorsement or higher levels of coverage.
What is low mileage car insurance?
If you drive infrequently, you may be a good candidate for low-mileage car insurance. This type of car insurance works by tracking miles driven using a telematics device that gets installed in your vehicle, or through a smartphone app
While some car insurance companies offer mileage-based discounts, low-mileage car insurance is available as either a standalone policy or a program you can enroll in through many standard auto insurance providers.
With low-mileage car insurance, your premium is based on the number of miles you drive each month. Usually, you pay a flat monthly rate and a small per-mile-fee. Oftentimes, low mileage auto insurance is less expensive than traditional car insurance.
Here are some of the major companies that offer low mileage car insurance and mileage-based savings programs:
How to get low mileage car insurance
If you drive infrequently, you may be a good candidate for low-mileage car insurance. This type of insurance tracks miles driven using a telematics device installed in your vehicle or through a smartphone app.
Also known as pay-per-mile insurance, these insurance policies are available as either a standalone policy or a program you can enroll in through many standard auto insurance providers.
With pay-per-mileage car insurance, your premium is based on the number of miles you drive each month. Usually, you pay a flat monthly rate and a small per-mile fee. Often, low-mileage auto insurance is less expensive than traditional car insurance.
Here are some of the major companies that offer pay-per-mile car insurance:
- Allstate (Milewise program)
- Metromile
- Mile Auto
- Noblr by USAA
Pay-per-mile plans may work well for drivers with poor credit since annual mileage is usually the strongest rating factor. Getting car insurance with a pay-per-mile carrier is similar to traditional insurance, except for downloading an app or installing a device. Most telematics devices will only work on vehicles manufactured after 1996.
Will low mileage auto insurance help me save?
Pay-per-mile insurance is not available in every state, but other options exist. Usage-based insurance is similar to pay-per-mile insurance, where your annual mileage is tracked and may be weighted more heavily than other rating factors. However, usage-based insurance also tracks other driving behaviors, such as distracted driving and speeding, which not all policyholders are comfortable with. Below are carriers offering usage-based insurance policies in several states:
Ask for a low mileage discount
If you prefer a traditional auto policy, there are still other ways to save money. Some insurance carriers offer low-mileage discounts, but it is more common for carriers to simply price low annual mileage lower than high annual mileage. Talk to your insurance agent about what opportunities are available with your carrier.
Track your annual mileage
Lowering your annual mileage isn’t always easy if it isn’t accompanied by another type of policy change, such as moving. Providing your carrier with documentation supporting the lower mileage can help. Keep track of your mileage either through a paper log or by keeping your oil change paperwork. In most cases, carriers will accept these as proof of lower mileage.
Other ways to save on car insurance
With the average cost of car insurance at $2,458 per year for full coverage, many drivers are looking for ways to reduce their insurance costs, and lowering the number of miles you travel is just one of them. Here are some additional ways that drivers may be able to get a lower car insurance premium, regardless of mileage:
- Shop around: One of the best ways to get the cheapest car insurance for you is to request and compare quotes from multiple car insurance companies. You might be surprised at how much your quoted premiums differ between insurers for the same coverage types and limits.
- Bundling: Many insurers offer a discount if you buy multiple insurance policies with them — for example, bundling your car and home insurance typically nets one of the most significant discounts available.
- Paperless discount: Some insurance companies may offer you a small discount if you choose to receive your bill and policy documents electronically.
- Improve your credit score: Drivers with good credit-based insurance scores generally pay less for car insurance. Improving your credit might be an effective way to get a lower premium. (Please note that California, Hawaii, Massachusetts, Michigan and Washington prohibit or restrict the use of credit in determining auto insurance rates.)
- Pay in full: If you can afford to pay your annual premium upfront and in full, rather than in monthly installments, some insurers may offer you a discount..
- Organization and affiliation discounts: Some car insurance companies may offer car insurance discounts for belonging to a specific organization — for example, being an alumni of a certain school or working for a certain employer.
- Raise your deductible: Generally speaking, the higher your deductible, the amount you pay towards a covered collision or comprehensive claim, the lower your car insurance premium. Increasing your deductible could help you save money, but you’ll want to make sure you can afford the higher out-of-pocket cost on short notice.
Frequently asked questions
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