Low-MileageCar Insurance

What is low-mileage car insurance?

Low-mileage car insurance is specialist cover designed for drivers who don't spend much time on the road. It recognises that less driving means a lower risk of accidents, so a low-mileage insurance policy is priced differently from standard ones.

Low-mileage policies can take several forms, and the way the insurance works is that your premiums are linked closely to how much you actually use your car.

Is car insurance cheaper if you drive less?

Drivers who choose to drive fewer miles often notice benefits beyond just safety. Spending less time driving reduces exposure to potential accidents, but it also means there’s less wear and tear on your car, from brakes to tyres and engine components. Insurers take this into account, which results in cheaper car insurance.

Even occasional drivers who mainly use their car for short trips or weekends may find that accurately reporting low usage helps them get lower premiums.

How much is car insurance for low-mileage drivers?

An insurer might quote £416 for 6,000 miles, £434 for 8,000 miles, and £452 for 10,000 miles. You can also opt for a pay-as-you-go option to get lower insurance if your car spends more time parked than on the road.

Car insurance premiums also depend on age, location, and driving history.

What's considered low mileage?

A vehicle is classed as low mileage when it covers fewer miles a year than most motorists. In the UK, the average miles driven per car is around 7,000.

Anything below this is generally seen as low annual mileage.

Who can benefit from low-mileage car insurance?

Some drivers naturally spend less time on the road:

• Remote or home-based workers use their cars infrequently and are less likely to make a claim.
• Retired drivers tend to use their cars for short trips rather than daily commutes.
• Second cars or occasional-use vehicles spend more time parked than on the road.
• City drivers with access to public transport reduce their annual mileage, too.
• Classic car insurance suits car enthusiasts who use their vehicles sparingly, such as for rallies or weekend drives.

What low-mileage car insurance options are there?

Different types of low-mileage car insurance can be grouped into short-term and long-term options depending on how frequently you use your vehicle:

• Short-term car insurance or temporary car insurance protects your vehicle for a few hours up to 30 days.
• Long-term policies adjust premiums based on your expected annual mileage, including standard low-mileage insurance, pay-as-you-go options where you pay per mile, and classic car insurance for vehicles driven sparingly throughout the year.

How to calculate your annual mileage

Start by checking the current mileage on a car and comparing it to the previous year's reading, which is available from MOT certificates. The difference gives a clear idea of the number of miles you've driven over 12 months.

You can also work out your estimated mileage by tracking how far you travel on a typical day and multiplying this by the number of days you drive each year. Include occasional trips like holidays or visits to family to make your calculation as accurate as possible.

How to save money with low-mileage car insurance

Here's what you can do to make the most of a policy:

• Plan your journeys carefully and combine trips or use walking, cycling, and public transport to reduce your mileage, which could save money.
• Choose a pay-as-you-go or telematics policy so your premium reflects how much you actually drive.
• Keep your vehicle secure with approved alarms or immobilisers to potentially reduce premiums.
• Compare low-mileage policies from different insurers to find the best deal.
• Add an experienced named driver to further lower your car insurance costs.

How to save money with low-mileage car insurance

Exceeding your mileage could invalidate your insurance if it goes significantly over the figure you provided when taking out your policy.

Insurers use your stated mileage to assess risk and set premiums, so reporting a lower figure than you actually drive can be treated as misrepresentation. If you make a claim and your car’s mileage exceeds the agreed limit, your insurer may refuse to pay out or even cancel your policy.

Notify your provider if your driving habits change to avoid this.

What details do I need to get a car insurance quote?

During the insurance application process, you'll typically need to provide:

• Age
• Occupation
• Home address & where the car is kept overnight
• How you use your car (social, commuting, business)
• Average annual mileage
• Driving licence number
• Vehicle registration number
• Date of purchase
• Any modifications to the car
• No Claims Discount details
• Accident or claims history from the past 5 years
• Motoring convictions or penalties in the last 5 years
• Other drivers on your policy

FAQ

What happens if I drive more miles than declared?

Many insurers set a mileage limit, and if your car's mileage goes beyond that, your policy may be invalidated, or a claim could be refused. Some providers allow minor flexibility, but significant differences may lead to higher premiums or even cancellation.

Is pay-as-you-go car insurance cheaper for low-mileage drivers?

A pay-as-you-go car insurance policy could offer savings if you drive less than average. You pay a fixed fee for basic cover while the car is parked and a variable rate for the miles you actually drive. This makes insurance costs lower for occasional drivers compared to a standard annual policy.

Can I get low-mileage car insurance if I only use my car on weekends?

Yes. Policies for low-mileage drivers include a mileage cap, which is mostly suitable for those who only use their car occasionally, such as at weekends. There are options like pay-per-mile insurance or temporary cover that let you match the type of insurance to how often the car is on the road.

Can I get low-mileage insurance if I work from home?

Working from home reduces your total mileage, which many insurers consider when offering quotes. A low-mileage policy could be appropriate, but you should check with each insurance provider because some have minimum mileage requirements.

Do classic cars count as low-mileage vehicles?

Yes, car enthusiasts pay less if they only drive their vehicles occasionally. The good news is that classic car insurance assumes limited use, which can lead to lower premiums.

Can I reduce my mileage to lower my premium?

Lowering the distance you drive can reduce premiums for most car insurance policies. Insurers reward low-mileage drivers with discounts or allow them to switch to a pay-per-mile or restricted-mileage policy to save money. To give you a few ideas, consider car-sharing, public transport, or combining trips.