Many car insurance companies, including State Farm, acknowledge that lower mileage often equates to lower risk. This is why they offer low-mileage discounts. If you’re driving less than 50 miles a day, you might be wondering if State Farm’s low-mileage discount is the best option for you. Let’s delve into State Farm’s offerings and see how they compare to competitors in the low-mileage car insurance market.
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Understanding State Farm’s Low-Mileage Discount
State Farm provides a low-mileage discount for eligible customers. While the specific percentage isn’t publicly advertised, it’s designed to reduce your premium based on driving fewer miles annually. This recognizes that driving less than 50 miles a day, or approximately 18,250 miles a year (50 miles/day * 365 days), statistically lowers your chances of being in an accident.
However, State Farm also offers another program that can be particularly beneficial for those driving less than 50 miles a day: Drive Safe & Save.
State Farm Drive Safe & Save: A Usage-Based Approach
Drive Safe & Save is State Farm’s usage-based insurance (UBI) program. UBI programs determine your insurance costs based on both how much and how safely you drive. Drive Safe & Save takes this a step further by potentially offering even greater savings than a standard low-mileage discount, with advertised discounts of 30% or more.
For drivers consistently driving less than 50 miles a day, Drive Safe & Save could lead to significant savings. The program monitors your driving habits, including mileage, and rewards safe driving behaviors.
How State Farm Compares to Competitors for Low-Mileage Drivers
When considering car insurance for driving less than 50 miles a day, it’s essential to look beyond just State Farm. Several companies specialize in or heavily promote low-mileage and usage-based insurance options. Here’s a comparison:
| Company/Program | Discount Type | Advertised Discount |
|---|---|---|
| State Farm | Low-mileage discount | Unspecified |
| American Family Insurance | Low-mileage discount | Unspecified |
| USAA | Low-mileage discount | Unspecified |
| Metromile | Pay-per-mile insurance | 47% |
| Mile Auto | Pay-per-mile insurance | 30%–40% |
| Nationwide SmartMiles | Pay-per-mile insurance | Around 25% |
| Allstate Milewise | Pay-per-mile insurance | 20%–25% |
| American Family MilesMyWay | Pay-per-mile insurance | Up to 25% |
| State Farm Drive Safe & Save | Usage-based insurance | 30% or more |
| USAA SafePilot | Usage-based insurance | Up to 30% |
As you can see from the table, companies like Metromile and Mile Auto focus specifically on pay-per-mile insurance. This type of insurance can be extremely cost-effective if you consistently drive very low mileage, potentially less than 50 miles a day. Pay-per-mile insurance charges a base rate plus a per-mile rate, making it ideal for those who drive infrequently.
Nationwide SmartMiles and Allstate Milewise also offer pay-per-mile options, alongside their traditional insurance policies. This flexibility can be attractive if your driving habits might change in the future.
Is State Farm the Right Choice for Driving Under 50 Miles a Day?
State Farm is a reputable insurer with a low-mileage discount and the potentially significant savings of Drive Safe & Save. For drivers driving less than 50 miles a day, both options are worth exploring.
However, if your mileage is consistently very low, companies specializing in pay-per-mile insurance, like Metromile or Mile Auto, might offer even more competitive rates.
Ultimately, the best way to determine if State Farm is the right choice for you is to:
- Get a quote: Request a personalized quote from State Farm, specifically asking about their low-mileage discount and Drive Safe & Save program.
- Compare quotes: Compare State Farm’s quote with quotes from other insurers, including pay-per-mile specialists and other major companies like Allstate and Nationwide.
By comparing personalized quotes, you can confidently choose the car insurance policy that best suits your needs and driving habits when driving less than 50 miles a day.
