Telematics & Usage-Based Programs: Which Insurers Offer the Best Insurance Savings for Low-Mileage Drivers

Low-mileage drivers are uniquely positioned to benefit from telematics and usage-based insurance (UBI). These programs track miles and driving behavior through apps or plug-in devices and can translate safer, less frequent driving into real premium savings. This guide compares leading telematics programs, explains how low-mileage drivers can maximize savings, and links to related resources for stacking discounts and qualifying for the biggest reductions.

Table of Contents

How telematics helps low-mileage drivers save

Telematics programs collect data such as:

Miles driven
Trip times (rush hour vs off-peak)
Hard braking, rapid acceleration, and speeding
Phone use while driving (in some apps)
Location patterns (for per-mile programs)

For low-mileage drivers, the most impactful benefits are:

Per-mile pricing (you pay for what you drive)
Low-mileage discounts when mileage falls below carrier thresholds
Behavior-based bonuses that multiply savings when combined with low mileage

For a primer on how telematics fits with other safe-driving incentives, see: Best Insurance Discounts 2026: Telematics, Safe Driver Programs, and How to Qualify for Maximum Savings.

Which insurers offer the best savings for low-mileage drivers? (Quick comparison)

Insurer	Telematics Program	Typical reported savings for low-mileage drivers*	Key features / notes
State Farm	Drive Safe & Save	6–30%	App or device; discounts for low mileage + safe driving; widely available
Progressive	Snapshot	10–25%	Behavior-focused; good for younger drivers who drive less aggressively
Nationwide	SmartRide	10–30%	Mix of driving behavior and mileage; sign-up bonus + renewal discounts
GEICO	DriveEasy	5–25%	App-based; low-mileage drivers benefit if combined with clean driving record
Allstate	Drivewise / Milewise (varies)	5–30%	Some states offer per-mile options (pay-per-mile) — ideal for very low mileage
USAA	Drive Easy	8–30%	Competitive rates for eligible members; strong telematics incentives
Farmers	Signal	5–25%	App-based coaching plus mileage-based reductions in select markets

*Ranges are illustrative based on insurer disclosures and consumer reports; actual savings depend on state, driving behavior, vehicle, and eligibility.

Note: Program names and availability vary by state and over time. Always confirm details with the carrier in your state.

Best programs by low-mileage scenario

If you drive fewer than 5,000 miles/year: look for per-mile or pay-per-mile plans (e.g., Allstate’s Milewise where available).
If you drive 5,000–10,000 miles/year: behavior-based programs (State Farm, Progressive, Nationwide) typically yield the best blended discounts.
If you’re a student, senior, or part of an affinity group: combine telematics with other discounts — see How to Stack Discounts: Multi-Policy, Good Student, Low-Mileage, and Affinity Programs That Lower Premiums.

How to choose the right telematics program

Consider these factors:

Measurement method: app-only is convenient; plug-in devices can be more accurate.
What’s measured: mileage alone vs. driving behavior + mileage.
Discount structure: immediate discount, renewal bonus, or premium credit.
Privacy & data retention: how long the insurer keeps trip data and whether it shares data with third parties.
State availability: some programs are not offered in every state.
Eligibility: presence of clean driving record or minimum miles threshold.

For a checklist of required documents and behavior rules, consult: Discount Eligibility Checklist: Documents, Driving Habits, and Safety Upgrades That Unlock the Best Insurance Rates.

Tips to maximize savings as a low-mileage driver

Track your annual mileage now — many insurers give immediate low-mileage discounts if you report and verify it.
Enroll in a telematics program for at least one policy term to build a record of safe, low-mileage driving.
Avoid high-risk times (late night, rush hour) and frequent hard braking or rapid acceleration.
Combine telematics savings with other discounts: multi-policy, bundling, or affinity group savings. See Best Insurance for Bundling: How Much You Can Save by Combining Auto, Home, and Umbrella Policies.
Check limited-time offers and coupons before buying a policy: Best Insurance Coupons & Promotional Offers: Where to Find Limited-Time Incentives from Major Carriers.

Real-world examples

Example A: Jane drives 6,000 miles/year and enrolls in a behavior + mileage program. After 12 months of low-risk driving, she saw a 22% reduction on renewal.
Example B: Kyle drives 3,000 miles/year and chooses a pay-per-mile plan. His premium dropped by roughly one-third versus a standard policy because his total paid miles were low and his driving profile was clean.

For targeted scenarios (students, seniors), see: Best Insurance Savings for Seniors and Students: Programs, Eligibility Rules, and Real-World Savings Examples.

Stacking discounts — maximize without losing coverage

Telematics savings are most powerful when stacked properly. Common stackable discounts include:

Multi-policy / bundling (auto + home)
Low-mileage discount
Safe driver / good-driving telematics reward
Affinity / employer group discounts
Good student discounts (for eligible drivers)

Learn stacking strategies here: How to Stack Discounts: Multi-Policy, Good Student, Low-Mileage, and Affinity Programs That Lower Premiums. Also review how loyalty vs shopping affects outcomes: Best Insurance Loyalty vs Shopping: When Renewing Beats Switching and How to Negotiate Better Rates.

Common pitfalls and privacy concerns

Some telematics programs reduce initial savings in exchange for future credits — read terms carefully.
Data privacy: ask how trip data is used, stored, and whether you can opt out.
Cancellation or switching: confirm whether program credits or eligibility are portable across renewals or carriers.
Don’t drop needed coverage just to chase telematics savings — see: Maximizing Savings Without Losing Coverage: Discount Combinations and Policy Adjustments That Work.

Quick decision checklist

Do you drive significantly less than the national average? Yes → telematics/per-mile could save money.
Is your driving consistently calm and off-peak? Yes → behavior credits will compound savings.
Are you eligible for other discounts to stack? Yes → potential for substantial total premium reduction.

For a full eligibility checklist and safety upgrades that help, see: Discount Eligibility Checklist: Documents, Driving Habits, and Safety Upgrades That Unlock the Best Insurance Rates.

Bottom line

For low-mileage drivers, telematics and usage-based programs are one of the most reliable ways to cut auto insurance costs — especially when paired with bundling, affinity, and safe-driver discounts. Compare program types (per-mile vs. behavior), confirm availability in your state, and stack discounts where possible. If you want personalized next steps, start by documenting your annual mileage and then request telematics quotes from the top carriers listed above.

Need help comparing specific quotes or building a discount stack? Explore related savings strategies and decision tools in these guides: