Annual mileage for car insurance: how does it affect the cost?
Your annual mileage for car insurance significantly affects the cost of your premium. So how do you work out your annual mileage for car insurance? And if you’re a low-mileage driver, what deals can you find?
Your annual mileage for car insurance significantly affects the cost of your premium. So how do you work out your annual mileage for car insurance? And if you’re a low-mileage driver, what deals can you find?
60-Second SummaryJust want the essentials? Here’s your quick guide to how annual mileage affects car insurance:
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What is annual mileage for car insurance and why does it matter?
When you buy or renew a car insurance policy, you’ll have need to estimate how many miles you drive per year. Annual mileage is one of the factors that car insurance providers look at when they’re deciding how much of a risk you are to insure.
The more you drive, the more likely you are to be in an accident and make a claim on your car insurance. It stands to reason that the higher your annual mileage, the more your premium is likely to cost. However, our data suggests that some lower mileage drivers might be paying more for their car insurance than higher mileage drivers.
Will restricting my annual mileage lower my car insurance?
Having low annual mileage could lower your premium. That’s because driving less lowers your risk of being in an accident. But your insurance provider will consider other factors too, including your age, your postcode, your claims history and the car you drive.
When you compare quotes with Compare the Market, you can see how much lowering your mileage could save you. However, you need to be as accurate as possible when predicting your annual mileage because your policy could be cancelled if it’s wrong.
What is the best annual mileage for car insurance?
Unfortunately, there’s no magic annual mileage figure that guarantees a low premium. It’s up to each car insurance provider (and their teams of actuaries) to decide how your annual mileage should affect the price you pay for your policy.
Government vehicle mileage stats show that the average annual mileage for drivers in England in 2023 was 7000. Some car insurance providers may give you a discount if you drive less than this, but it’s not a given.
Although a lower mileage might mean a lower premium, it’s only one of several factors involved in the calculations. For example, a young driver who only uses their car occasionally could still end up paying more than an experienced driver who commutes 50 miles to work every weekday from a safe suburban neighbourhood.
How mileage affects car insurance
Based on Compare the Market data, here is how annual mileage affects car insurance premiums:
| Annual mileage | Car insurance premium[1] |
|---|---|
| 0-999 | £943.32 |
| 1,000-1,999 | £870.69 |
| 2,000-2,999 | £853.58 |
| 3,000-3,999 | £864.88 |
| 4,000-4,999 | £833.43 |
| 5,000-5,999 | £800.45 |
| 6,000-6,999 | £713.54 |
| 7,000-7,999 | £726.02 |
| 8,000-8,999 | £670.33 |
| 9,000-9,999 | £594.51 |
| 10,000-10,999 | £695.94 |
| 11,000-11,999 | £531.65 |
| 12,000-12,999 | £573.61 |
| 13,000-13,999 | £549.52 |
| 14,000-14,999 | £568.14 |
| 15,000+ | £742.99 |
[1]Separating our customers by their annual mileage number, 51% of our customers were quoted less than these prices for their comprehensive car insurance in December 2024.
According to our data, premiums decrease significantly as annual mileage increases from 0-999 miles to 11,000-11,999 miles, with the lowest premium observed in the 11,000-11,999 bracket. However, premiums begin to rise again for those driving 15,000 miles or more annually.
This suggests that while driving less can lead to savings, there is an optimal range where premiums are minimised, likely due to a balance between risk and usage. The increase in premiums for very low mileage could be because infrequent drivers might not be as experienced, potentially increasing their risk.
On the other side, higher premiums for those exceeding 15,000 miles may reflect the increased likelihood of wear and tear on the vehicle and the higher probability of accidents due to more time spent on the road.
How can I work out my annual mileage?
If you’ve been driving for a while, there are a few simple ways you can work out your annual mileage:
- Check your most recent MOT certificates, which will tell you how many miles you’ve driven between each test.
- Check your car’s service record. When your car has its annual service, the mileage is noted in your service book.
- When you take out a new insurance policy, make a note of your mileage so you’ll be able to see how many miles you’ve driven when it comes to renew.
If you’re new to driving or your lifestyle and driving habits have changed recently, then you’ll need to do some calculations to get an accurate estimate of your annual mileage. Here’s how:
- Work out how many miles you drive in the typical week, for example:
- Your commute to and from your work or place of study
- Any regular errands you need to drive for, such as doing the weekly shop
- Social trips to see friends and family.
- Multiply your typical weekly mileage by 52 to get your yearly estimate.
- Don’t forget to add on some contingency for occasional trips like holidays, road trips to see distant relatives, and unexpected errands.
It’s not an exact science, so remember to keep an eye on your mileage as the year progresses, and if it looks to be considerably under or over your estimate, get in touch with your insurance provider and let them know.
Can’t I just guess how many miles I drive?
No, it’s important to be as accurate as possible when estimating your mileage, so don’t just guess.
If you underestimate your annual mileage for car insurance and need to make a claim, you could find your policy is invalidated and won’t pay out.
If it’s thought that you knowingly misled your insurance provider to get a cheaper policy, you may have problems getting cover in future or find your premiums could be expensive.
Don’t overestimate your mileage either, as you could end up paying more than you need to for your premium.
Are there cheaper car insurance policies for low-mileage drivers?
If you don’t drive much, you could save money by taking out a low-mileage car insurance policy.
You could be a student and only drive at home in the holidays, a parent who just uses the car for the school run or maybe you’re retired and no longer use your car to commute. Not only could driving less save you money, but it’s also a win for the environment.
These policies include:
Classic car insurance
If you drive a classic car and use it rarely, or only during the summer months, you might want to consider specialist classic car insurance. Please note that you can only compare insurance for cars manufactured after 1970 with Compare the Market.
Restricted mileage policy
Some specialist insurance providers offer discounted policies if you drive less than an agreed limited mileage per year. Be sure to compare these with policies offered by mainstream providers, though, to make sure you’re genuinely saving money.
Telematics insurance
Telematics insurance involves a device or app that monitors your driving, including recording your mileage. If you drive safely, you’re rewarded with a lower premium, and you may get a discount if you stick to your mileage limit.
Pay-per-mile insurance
Some insurance providers offer pay-per-mile car insurance – or pay-as-you-go car insurance – where you only pay for the miles you drive. You simply attach a tracker to your dashboard, which measures your daily mileage and tells you how much to pay.
Tips for reducing annual mileage
Reducing your annual mileage not only has the potential to lower your car insurance premium, but it also benefits the environment. Here are some practical tips to help you drive fewer miles:
- Car sharing: share lifts with colleagues, friends or family who live nearby. This reduces the number of vehicles on the road and can save you money on fuel.
- Public transport: consider using buses, trains, or trams for your daily commute or regular errands.
- Walking or cycling: for short distances, walking or cycling can be a healthy and eco-friendly alternative to driving.
- Combine errands: plan your trips to combine errands into one journey rather than multiple short trips. This saves time and fuel.
- Remote work: the shift to remote working has become more common since the pandemic. It could also lead to a better work/life balance.
Where can I compare cheap car insurance quotes?
Whatever your mileage, comparing car insurance with us is quick and easy, and it could save you time and money. Get a quote today to see how much you could save.
Frequently asked questions
What happens if I go over my annual mileage?
If you realise partway through your policy that you’ve gone over your estimated annual mileage – or you’re on track to do so – the right thing to do is to tell your insurance provider.
It might mean you end up paying more for your premium, but at least you’ll know your policy is still valid if you need to make a claim.
How accurately do I have to estimate my annual mileage for car insurance?
You’ll need to provide your car insurance provider with a reasonably accurate estimate of your annual mileage, but no one is expecting you to get it right on the dot. Car insurance providers usually look at yearly mileage in brackets that typically go up in increments of 1,000.
What’s considered low mileage for car insurance?
Different insurance providers have their own idea of what constitutes low mileage. A good rule of thumb is anything that’s below the national average could be considered low mileage.
For example, the average number of miles driven in a private car in England in 2023 was 7000. If you drive far less than that, you could be on track for discounted insurance.
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Rebecca Goodman – Personal finance expert
Rebecca Goodman is a freelance financial journalist who specialises in insurance, personal finance and consumer affairs. Rebecca regularly writes for national newspapers including The Independent and The Mail on Sunday on a wide-range of financial topics. She covers everything from money-saving tips and holiday advice to investigations into how energy efficient appliances can cut the cost of household bills and the impact donating money can have on those in need. Along with features in national papers, Rebecca also writes news stories for websites including Yourmoney.com and The Money Edit.
This article is written by a Compare the Market expert, backed by data and enhanced by AI. Find out how we ensure accuracy and quality in our Editorial Guidelines.