Low-mileage car insurance: Is it the right fit?

Getting a car insurance quote is a personalised experience. Your driving history, your age and even your gender can all play a role in how much your premium costs. 

You can use that to your advantage, however, by recognising what you need as a driver, and securing cover that reflects that. This is where low-mileage car insurance can come in. If you know you won’t be driving that often, or that far, you can potentially save yourself some money by opting for a specialised low-mileage policy instead of standard cover.

But is it the right fit for your needs? Read on to find out more about low-mileage car insurance, who it might suit best, and what alternatives exist.

What is a low-mileage car insurance policy?

Low-mileage car insurance is for drivers who aren’t on the road as much as the average UK motorist, and therefore rack up fewer miles per year. 

And because you’re on the road less, in the eyes of insurance providers, you’re less likely to have an accident. That means low-mileage car insurance can be cheaper than a normal annual policy.  

According to the 2022 National Travel Survey by the Department of Transport, drivers in England had an average annual mileage of 6,600. This varied by fuel type, however. Petrol cars had an annual mileage of 6,000, compared to 7,900 for diesel cars. 

While there might be regional differences across Scotland, Wales and Northern Ireland, and providers will have their own criteria, if you drive less than the averages above you should consider low-mileage car insurance.

Should I get low-mileage car insurance?

You might be surprised at how many people could make use of low-mileage car insurance.

What is considered low mileage by insurers?

Every insurance provider will have their own criteria for what is classed as low-mileage usage. But if your annual mileage is under 7,500, you stand a good chance of being able to access low-mile car insurance. 

How can I find out how many miles I drive?

The easiest way to find out how many miles you’ve driven in a year is by checking your car’s service record, or its last MOT certificate. 

However, if you intend to drive more than you have in the past year – say you’re commuting further for a new job – you need to factor that in when getting a quote.

If that is the case, and your car has a trip meter, you could reset your short-term mileage meter and track how far you travel in what for you is an average week. By multiplying this by 52, you’ll have an estimate for the year – as long as you also factor in other, less frequent trips you might make across a 12-month period.

This method can also be useful if you have a new car, or have only recently qualified, and don’t have an extensive driving history to look back on.

If your car is older, and doesn’t have a trip meter, you may need to manually calculate how many miles you drive in an average week, alongside those less frequent journeys that all add to your annual mileage.

You need to be accurate when providing an insurer with your estimated annual mileage, as if you make a claim, and your mileage is drastically different to what you stated it would be, your policy may be nullified.

Alternatives to low-mileage car insurance

If you’re an infrequent driver, there are other options that might make financial sense aside from low-mileage car insurance

Pay-as-you-go car insurance

Pay-as-you-go car car insurance is a form of black box, or telematics, insurance. This involves a device being installed in your car that will track how many miles you drive.

It normally works in one of two ways:

• You pay a fixed cost for every mile you drive, tracked by the device in your car. There may be a monthly fee attached to cover you for when you car is parked
• You select a number of miles at the start of your policy, and track how many you have used via the device in your car. You can then top up your miles if you need more

This means your premium is more tied to exactly how many miles you drive than with low-mileage car insurance, which is a more general policy for motorists with a below-average annual mileage.

Temporary car insurance

If you find yourself driving very infrequently, you could consider temporary car insurance. With temporary insurance, you can purchase a policy that lasts as little as one hour, usually up to a maximum of 30 days. 

This could be useful for anyone who doesn’t need a car themselves, but still wants the option to drive someone else’s vehicle when the occasion arises.

Although you can use temporary car insurance on your own car, it is more appropriate if you need to borrow someone else’s vehicle. This is because, unless you declare your car as off-road using a Statutory Off Road Notification (SORN), you need a valid car insurance policy on your vehicle, even when you aren’t driving it.

Being added as a named driver 

If you aren’t a frequent driver, but know someone – say a partner, parent or trusted friend – that has a car, you could be added to their insurance as a named driver.

This would allow you to drive their car and be covered in the event of an accident, up to the same level of cover as they have on the vehicle.

This may make more financial sense than taking out your own annual low-mileage policy. It all depends on how much you need to drive in a year, and whether you are the main driver on the household’s vehicle.

You should note, however, that you won’t be able to build a no-claims bonus as a named driver. But, if you were to have an accident, it would affect the no-claims bonus of the car’s owner.