Low mileage car insurance

If you don't drive many miles throughout the year, you might be classed as a 'low mileage driver'. But what does that mean for you? And could it help you land a cheaper car insurance policy? Here's everything you need to know about low mileage insurance. Read on!

What's classed as low mileage for car insurance?

The average annual mileage for drivers is 6,574*. If you drive less than this, you'll likely be considered a low-mileage driver—and that can come with some great perks, like cheaper car insurance.

Insurance companies tend to see low-mileage drivers as less of a risk since they spend less time on the road. This means there's a lower chance of accidents, and that could mean more money in your pocket.

*Confused.com data Q4 2024.

Do insurance companies check mileage?

Yes, they do!

Car insurance providers may check your mileage through past MOT records, service history, or black box data if you have a telematics device fitted. They do this to make sure insurance premiums are accurate.

It's important to be honest about your mileage when asked—if the numbers don't add up, you could invalidate your cover. This could mean you're left without coverage when you need it most.

What's the best insurance for low mileage drivers?

If you don't drive much, you have a few insurance options that could help you save. Let's take a look:

Pay as you go car insurance

Also known as pay-per-mile insurance, pay-as-you-go car insurance bases your premium on how many miles you drive. So, if you're someone who rarely drives their car, this option could be ideal.

Black box car insurance

Black box car insurance is often recommended for new drivers, but it can also be a great option for low-mileage drivers. A small device is installed in your car to track driving habits, including how many miles you drive. If you agree to stay within a set limit, your insurer might reward you with a lower premium when you come to renew.

Temporary car insurance

If you only drive now and then, temporary car insurance could be a better option than a traditional, 12 month policy. It can provide cover from 1 hour up to 28 days, so it's ideal for occasional driving.

But, there's a couple drawbacks to this option. You'll need to go to the trouble of taking out a new policy each time you drive. And, you'll also need a Statutory Off Road Notification (SORN) in-between uses if it isn't already fully insured by someone else.

Who could benefit from low mileage car insurance?

Now we've covered the insurance options best-suited for low mileage drivers, let's look at who might benefit the most from these policies:

• Older drivers: If retirement means you're driving less, a pay-as-you-go policy could be a great fit, ensuring you only pay for the miles you actually drive.
• Students: If you've moved away for university and only use your car during trips home, temporary car insurance might be the most budget-friendly choice.
• Car borrowers If you occasionally borrow a friend or family member's car, a temporary policy or named driver insurance could be the cheapest and easiest way to stay covered.
• Classic car enthusiasts: If your prized classic only comes out for special occasions, temporary car insurance might be the best way to stay insured without overpaying for full on classic car insurance.

How can I check my mileage?

You can find your car's mileage by checking the odometer. To do this:

• Turn on the ignition
• Locate the odometer on the dashboard
• Read what the total mileage is

Head's up: Did you know we've got a handy mileage calculator? You can discover how many miles your car might cover in just a few clicks.

Do I still need to insure my car if I'm not driving it?

Yes—if your car is parked on a public road, it must be insured, even if you're not driving it.

But, if you're keeping it off the road, like in a garage, you don't need insurance— but you must apply for a SORN. This will tell the Driving and Licensing Agency (DVLA) that your car isn't in use, so you don't have to worry about insuring or taxing it.

What else affects the cost of car insurance?

Besides your mileage, there's other factors that can affect your insurance price:

• Your car’s group: Cars in higher insurance groups tend to pay more for their policy, while those in lower groups are usually cheaper to insure. Check your car's group with our car insurance group checker.
• Your driving history: If you have previous claims, suspensions, or violations, insurers might see you as a higher risk to insure. This could lead to a more expensive policy.
• Demographic: Age, location and occupation all play a part in how much you'll pay for insurance.
• The type of cover you get: While third-party insurance might seem like a cheaper option, it's actually usually more expensive. This is because drivers who choose third-party cover are often seen as higher risk. For example, the average cost of a third-party policy is £2,113*, while a comprehensive car insurance policy is £834* on average.

Confused.com data Q4 2024.

How else can I save on my car insurance?

Here's a few ways you can save on car insurance:

Build up your No Claims Bonus (NCB)

Staying claim-free can earn you a discount on your premium. Even just one year of no claims bonus could save you up to 34%* on your insurance.

Adjust your excess

The most common voluntary excess amount is £250*. But, if you agree to pay a higher excess in the event of a claim you could be offered a lower premium.

Just make sure that your agreed excess is affordable to you!

Add a named driver

Adding a responsible named driver to your policy, like a parent or experienced driver, could reduce your premium. In fact, you could save up to 23%* just by doing this alone!

Renew at the right time

Timing counts! The closer you get to your renewal date, the more expensive your premium could be.

The best time to renew is around 20 days before your policy expires*, as this is when insurers typically offer the best rates.

*Confused.com data Q4 2024.