How Does Annual Mileage Impact Car Insurance Rates?

How much you drive each year can significantly impact how much you pay for car insurance. If you’re someone who spends more time on the road, you’ll face a greater risk of accidents which will lead to higher premiums eventually.  

According to the Federal Highway Administration (FHA), the average American drives around 13,476 miles per year. Notably, men tend to drive 6,408 miles more annually than women. Different age groups also drive at varying rates. For instance, drivers aged 35 to 54 have the highest annual mileage, averaging 15,291 miles. Insurers adjust their rates, accordingly, categorizing drivers into low, average, and high mileage brackets.

If you realize how annual mileage affects car insurance rates, it can help you save on your premiums. In this article, we will discuss this topic and everything related to annual mileage and car insurance. 

What Is the Average Mileage of Drivers in the U.S.? 

The average U.S. driver logs about 13,476 miles per year, according to 2022 Federal Highway Administration (FHA) data. However, mileage varies based on age, gender, and lifestyle. Some drivers travel far more, while others drive much less. 

Average Annual Mileage by Age Group 

Younger and middle-aged drivers tend to drive the most. Meanwhile, teenagers and seniors drive the least. The table below shows how mileage changes with age: 

Source: Federal Highway Administration, 2022 

How Gender and Lifestyle Affect Mileage 

As you can see in the table, men drive more than women. On average, male drivers travel 16,550 miles per year, while female drivers log 10,142 miles (Via FHA). You can see this difference exists in all age groups. It is also important to note that both male and female drivers travel most when their age is between 35-54. 

Lifestyle equally affects your driving habits and annual mileage as well!

• Commuters: Those who drive to work daily usually log 12,000 to 15,000 miles per year.
• Remote Workers and Retirees: These drivers often stay under 7,500 miles annually.
• Rideshare and Business Drivers: Uber, Lyft, and sales professionals frequently exceed 20,000 miles per year.

In short, mileage varies extensively based on personal habits. Some people use public transport, while others spend hours on highways. Your annual mileage can affect your insurance rates, so knowing where you fall on the scale can help you find the best rates. 

What Is Considered Low, Average, and High Mileage? 

Car insurance companies categorize drivers based on how much they drive each year. Generally, mileage falls into three groups: low, average, and high mileage. Each category affects insurance rates differently. The more you drive, the higher your premium may be. 

Low Mileage: Under 7,500 Miles Per Year

Driver in this category spends less time on the road which reduces their accident risk. Because of this, insurers often offer discounts or lower rates.  

People who typically fall into this group include:

• Retirees who no longer commute to work
• Remote workers who rarely driver
• City residents who rely on public transport.
• Occasional drivers who only use their car for errands and leisure.

Average Mileage: 7,500 to 15,000 Miles Per Year

Most drivers fall into this range. The national average is 13,476 miles per year. Those in this bracket commute regularly but don’t drive excessively. Common examples include:

• Workers who commute short to moderate distances.
• Parents who drive kids to school and activities.
• Individuals who take occasional road trips.\

High Mileage: Over 15,000 Miles Per Year

High-mileage drivers spend a lot of time behind the wheel which increases their accident risk. As a result, they usually pay higher insurance premiums. People in this category often include:

• Long-distance commuters traveling 30+ miles daily.
• Rideshare drivers working for Uber, Lyft, or delivery services.
• Sales professional and business travelers.

How Does Annual Mileage Affect Auto Insurance Costs? 

Annual mileage influences car insurance premiums because it reflects how much risk insurers associate with your driving habits. The more miles you drive, the higher your chances of accidents which means a higher number of claims. And this can increase auto insurance rates. Conversely, lower mileage means reduced exposure to potential claims which results in lower premiums. 

According to the Consumer Federation of America (CFA), A 2009 study by Quality Planning, which analyzed about 500,000 insurance policies, found that drivers with the lowest annual mileage (0-3,000 miles) had 44% fewer claims than the average, while those with the highest annual mileage (over 20,000 miles) had 28% more claims. 

Insurers generally estimate your yearly mileage instead of requiring precise figures. Trips for commuting, errands, and leisure are all included in this calculation. Drivers reporting low annual mileage often qualify for discounts ranging from 5% to 36%. This benefit called the low-mileage discount, rewards drivers who reduce road time, lowering accident risk. 

How Much Is Car Insurance Based on Annual Mileage in 2025

Your car insurance rates are not solely determined by annual mileage; they can vary due to many factors (e.g., age, driving record, credit score, coverage level, and state laws). However, depending on the insurance company you choose, auto insurance premiums based on annual mileage can fall within the following range: 

Source: Insure.com  

This means:

• Driving less than 7,500 miles annually will cost you around $2,015 per year for full coverage.
• Driving between 7,500 and 9,999 miles annually will cost you approximately the national average, which is $2,100 per year.
• Driving between 10,000 and 11,999 miles annually will cost you about $2,138 per year for full coverage.
• Driving between 12,000 and 14,999 miles annually will cost you around $2,237 per year for full coverage.\
• Driving more than 15,000 miles annually will cost you approximately $2,600 per year for full coverage.

Average Annual Costs for Car Insurance Based on Annual Mileage

The following table shows the average annual car insurance costs based on the annual mileage in 2025: 

*Note: The rates may vary across different sources. 

Source: Forbes 

How Much Do Car Insurance Rates Increase with Higher Mileage

Car insurance rates increase as annual mileage rises because higher mileage means a greater risk of accidents. Insurance companies calculate premiums based on the likelihood of claims, and more time on the road increases that risk. 

Usually, drivers who exceed 12,000 to 15,000 miles per year see gradual rate hikes. Those who drive more than 20,000 miles experience even steeper increases. 

Each insurer sets its own pricing model, but industry trends show that insurance rates increase incrementally with mileage. The largest jump often occurs after 15,000 miles, where premiums can be 20-30% or even higher compared to low-mileage drivers. However, once a driver surpasses 20,000 miles, the increase may stabilize as insurers already consider them high-risk. 

The table below shows how insurance premiums increase as annual mileage rises:

How Do Insurance Companies Track Your Annual Mileage? 

Insurance companies track your annual mileage to assess risk and adjust your premium. They use different methods to verify how many miles you drive each year. 

Insurers often ask you to report your yearly mileage yourself. This is often called “self-reported mileage.” 

When you apply for car insurance the company asks you to estimate your annual mileage. Many insurers simply rely on the honor system, but they may later request proof. If your estimate is too low, they might adjust it to a higher default rate. 

Some insurers require periodic odometer checks to confirm mileage. They may ask for:

• Photos of your odometer
• Inspection report from an approved service center
• Verification during policy renewal

Furthermore, many companies offer telematics programs also known as usage-based insurance (UBI). If you’re included in this policy, they may track mileage through:

• Plug-in devices that monitor vehicle data
• Mobile apps that record miles driven
• Connected car systems like OnStar or built-in GPS tracking

Some insurers can also estimate your annual mileage through service and repair records. They can collect mileage data from oil changes, tire rotations, and vehicle inspections. These records show how much you’ve driven between visits. 

In some states, insurance companies access state vehicle records or third-party milage databases. For instance, California requires insurers to verify mileage every three years. 

Note that accurate mileage matters. If you drive less than expected, you may qualify for low-mileage discounts. However, if you underestimate your mileage, insurers could increase your premium or deny a claim. 

How to Accurately Estimate Your Annual Mileage

Estimating your annual mileage correctly helps ensure you get the best car insurance rate. If you report lower mileage than actually drive, your insurer may adjust your premium later. Here are simple ways to track your mileage accurately: 

1. Use Your Odometer

The easiest way to estimate your yearly mileage is by checking your odometer readings at the start and end of the year. Follow these steps:

• Record your current odometer reading today.
• After a month, check the reading again.
• Multiply the miles driven by 12 to get an estimate for the year.

2. Check Maintenance and Service Records 

Car services records might include odometer readings. Look at your last two service reports, find the difference in mileage, and divide it by the number of months between services. Multiply this number by 12 to get an annual estimate. 

3. Track Your Weekly Driving Habits 

Another simple method is calculating your weekly mileage:

• Note the number of miles driven in one week.
• Multiply this number by 52 to estimate annual mileage.
• If you drive more on weekends or during vacations, adjust your estimates accordingly.

4. Use Mileage Tracking Apps

Several apps automatically track mileage and give you a more accurate number:

• MileIQ: It’s ideal for commuters and business travelers.
• Everlance: Track mileage and expenses.
• TripLog: Works well for detailed mileage reports.

Besides, you can use your car’s built-in features. Many modern vehicles have trip computers that record mileage. You can reset the trip meter at the start of the year and check it regularly to track your miles driven. 

State-Specific Rules: How Mileage Affects Insurance in Different States

Car insurance rules vary by state, and how much you drive matters more in some areas than in others. Most insurance companies look at your annual mileage to set rates, but some states place more importance on it. Also, these states may offer bigger discounts to drivers who drive less.

So, Why Some States Weigh Mileage More Heavily Than Others

States with strong consumer protection laws often regulate how these companies calculate premiums. For example:

• California and New York see mileage as an important factor in rate calculations.
• Michigan and Massachusetts limit how much insurers can consider credit scores, making mileage more significant.
• Rural states like Wyoming and Montana may weigh mileage less because drivers typically travel longer distances.

California’s Strict Mileage Reporting Requirements

California has some of the most detailed mileage tracking rules in the country. According to state law:

• Insurers must collect and verify mileage data every three years.
• Drivers who fail to report mileage may have their policy adjusted to the state average, which can increase their premium.
• Insurance companies may ask for odometer readings, telematics data, or service records to verify mileage.
• Low-mileage discounts are often larger in California because insurers are required to prioritize mileage over factors like credit scores. 

How Mileage Discounts Vary by State

Mileage-based discounts vary by state. Some states provide bigger savings for drivers who report lower annual mileage. 

In California, low-mileage discounts can be as high as 11% because mileage is a key factor in pricing. Oregon and Washington also offer strong mileage-based discounts due to strict insurance rules. 

In Texas and Florida, mileage is important, but the discounts for low-mileage drivers are smaller than in California. In Illinois and Ohio, some insurance companies offer pay-per-mile insurance for drivers who don’t drive often. 

What Are the Best Insurance Options for Low-Mileage Drivers? 

Drivers who log fewer miles each year may qualify for lower insurance rates. Many insurance companies offer special policies and discounts, particularly for drivers with low mileage. 

If you drive less than 10,000 miles per year, pay-per-mile insurance would be perfect for you. This type of policy charges:

• A base monthly rate for basic coverage
• A per-mile-fee based on actual miles driven

You can also choose Usage-Based Insurance (UBI) policy. This policy tracks beyond mileage which includes driving behavior, speed, braking, and time of the day to determine your premium. Insurers use mobile apps or telematic devices to collect data. Safe, low-mileage drivers can earn discounts of up to 40% from the most affordable insurance agency. 

Besides, if you own a classic car, second vehicle, or seasonal-use vehicle, you can choose a limited-use policy to save money. These policies provide coverage for vehicles driven only occasionally.

In case you recently started working from home, retired, or reduced driving, update your insurance provider and switch to a different policy based on your lifestyle changes. Many insurers allow policyholders to adjust their annual mileage estimate and apply discounts. 

How Annual Mileage Affects Car Insurance Rates: The Bottom Line

Annual mileage directly impacts car insurance rates. To sum up, the more you drive, the higher your premiums become. Insurers usually categorize drivers into low, average, and high mileage tiers so that they can evaluate the risk more accurately. If you’re a low-mileage driver, you’ll receive discounts or may qualify for pay-per-mile insurance. On the other hand, high-mileage drivers comparatively face expensive car insurance rates. However, by tracking mileage, choosing the right auto policy, and exploring the discounts, you can reduce insurance expenses.

In case you’re looking for the most affordable full coverage auto insurance, give L.A. Insurance a try! We’re one of the largest insurance agency franchises in North America. Find our agent here or give us a dial at (888) 500-6065 to discuss your insurance needs and insurance rates based on annual mileage. 

Read our articles to learn more about car insurance rates:  

• How much is car insurance?
• How much is car insurance by age?
• Average car insurance rate by gender
• How does driving history affect car insurance rates?
• How make and model affect car insurance rates?
• What is the cost of car insurance based on credit score?
• How Does Your Location Affect Car Insurance Rates?
• How does marital status affect car insurance rates?
• How Much Is Car Insurance in Michigan?

Frequently Asked Questions (FAQs)

Do Car Insurance Rates Depend on Mileage?  

Yes, but car insurance pricing depends on various factors beyond annual mileage. While how often and how long you drive your car impacts your auto insurance rates, other important factors include:

• Your driving record: Tickets, accidents, and violations can increase your premiums.
• Your age and gender: Younger male and older drivers might pay more due to perceived risk compared to female drivers.
• Type of vehicle: The make, model, and age of your car can affect rates.
• Location: Where you live and park your car can influence premiums.
• Credit score: In many states, your credit history can impact your rates.
• Coverage level: The amount and type of coverage you choose will also affect the cost.
• Marital status: In some states, being married can lower your rates.

Does Your Daily Commute Affect Your Insurance Premium? 

Yes, your daily commute affects your car insurance premium. The more miles you drive to work or school, the higher your accident risks, leading to higher rates. Long-distance commuters pay more because of their increased road exposure. However, carpooling or working remotely can lower mileage and reduce insurance costs. Many insurance companies offer low-mileage discounts, so updating your insurer about commuting changes can help lower your premiums. 

Does High Mileage Make Insurance Cheaper?

No, having high mileage does not lower your insurance costs. The more you drive, the greater your chance of having an accident, which leads to higher premiums. Insurance companies typically charge more for drivers who go over 15,000 miles a year because they are on the road more often. However, pay-per-mile insurance may not be a good choice for high-mileage drivers since it can end up costing more than standard policies. 

What Is Considered High Mileage for Car Insurance? 

Most insurance companies see 15,000 miles or more per year as high mileage. Drivers who go over this limit usually pay higher premiums because they are at greater risk of accidents. This group usually includes rideshare drivers, long-distance commuters, and business travelers. Some insurers might even consider 20,000 miles or more as extremely high mileage.  

What Happens If You Go Over Your Annual Mileage on Insurance? 

If you drive more than your estimated mileage, your insurance company might change your premium when it’s time to renew. Some companies check mileage through telematics or odometer readings. If your actual mileage is much higher than, what you estimated you might face increased rates or issues with coverage. Pay-per-mile insurance plans charge you based on the miles you actually drive which means your costs will go up automatically when you drive more. 

What Is Considered Low Mileage for Car Insurance?

Low mileage is generally considered to be under 7,500 miles per year, though some insurers view under 10,000 miles as low. Retirees, remote workers, and city residents who often use public transport can usually get low-mileage discounts. Some insurers offer pay-per-mile plans, which benefit drivers who don't use their cars much. 

References:  

• Average annual miles per driver by age group. (n.d.). https://www.fhwa.dot.gov/ohim/onh00/bar8.htm
• Martin, S. (2025, January 7). Does annual mileage affect car insurance? Bankrate. https://www.bankrate.com/insurance/car/average-miles-driven-per-year/
• Consumer Federation of America. (2015, October 1). Auto insurers fail to reward low mileage drivers · Consumer Federation of America. https://consumerfed.org/press_release/auto-insurers-fail-to-reward-low-mileage-drivers/
• Kissell, C. (2025, January 23). How does mileage affect car insurance rates in 2025? Insure.com. https://www.insure.com/car-insurance/mileage-and-car-insurance-rates/
• Gusner, P. (2025, January 7). Average cost of car insurance 2025. Forbes Advisor. https://www.forbes.com/advisor/car-insurance/average-cost-of-car-insurance/