The State Farm low mileage discount is available for drivers who travel no more than 7500 miles per year. The discount amount varies depending on your driving history, the make and model of your vehicle, where you live, and other factors.
How the Program Works
Each year, a State Farm representative will contact you to collect your vehicle’s odometer information and confirm you have driven fewer than 7500 miles. You will lose the discount if one of these periodic check-ins finds your annual average mileage has increased.
Many insurance companies offer usage-based insurance (UBI). According to auto insurance website The Zebra, these are the average annual premium rates based on driver mileage per year:
- $1409 for fewer than 7500 miles.
- $1470 for 7500 to 10,000 miles.
- $1485 for 10,000 to 15,000 miles.
- $1495 for more than 15,000 miles.
Some UBI insurance companies, such as Metromile and Root, allow drivers to pay for their insurance as they accumulate miles. In addition, many mainstream companies provide telematics programs that offer UBI to their clients.
For example, State Farm has a Drive Safe & Save program. If you sign up, your agent will provide an In-Drive device to plug into your car’s OBDII diagnostic port. The device records and sends information about your braking, turning, acceleration, speed, mileage, and driving hours. It can also determine whether you use your phone while driving. You can log into State Farm’s website or app to track your driving information and see how it affects your rates.
You can also coordinate Drive Safe & Save with SYNC or OnStar instead of using a plug-in device. These programs send mileage information to State Farm once a month. Your policy premium will adjust to reflect how often you drive.
Currently, an OnStar subscription costs $349.40 a year or $34.99 monthly. In addition to Drive Safe & Save access, you receive benefits such as maintenance alerts, vehicle diagnostics information, roadside assistance, and emergency response. You can upgrade your subscription to take advantage of 30 monthly hands-free call minutes and navigation.
Another option involves signing up for the Drive Safe & Save app on your phone. The insurance company will send you a small receiver to place inside your car, often on the windshield or by the gear shift, that tracks driving behaviors.
If you live in Ohio, you can send information to Drive Safe & Save with your vehicle’s Bluetooth system and your smartphone. State Farm allows California drivers to report their own mileage.
CarInsurance.com reports that drivers who stay below 12,000 miles per year can save up to 25 percent on premiums with Drive Safe & Save. Additional savings apply for drivers who stay off the road between midnight and 4 a.m. and stay under 80 miles per hour.
Each car in your household can enroll separately for the OnStar program. That means even if you have this type of coverage, other family members do not need to sign up.
Average Cost for Low Mileage Insurance
According to CNET, State Farm reports that California drivers who qualify for the low mileage discount will save about 6 percent on the state’s annual average policy cost of $750. Some customers might qualify for a bonus discount of 5 percent for signing up. However, prepare for a policy increase if you drive more than expected.
Other State Farm Discounts
According to WalletHub, other discounts State Farm offers beyond the low mileage discount include:
- Driver education or defensive driving course discount, with course approval from your State Farm agent.
- Vehicle safety feature discount, which provides up to 40 percent off your medical-related auto insurance coverage if your vehicle model year is later than 1994 and has a good crash test history.
- Discount for having a good driving history.
- Discount for students who require coverage but live away at college and rarely drive, as long as they are younger than 25.
- Discount of up to 25 percent for being accident- and claim-free for at least three years
- Drive Safe & Save discount, a program that allows you to save up to 30 percent on your auto policy premium if you use an OnStar device to collect and share your driving information
- Discount for full-time high school or college students on your policy ages 16 to 25 if they maintain a B average. They must show outstanding test scores, be in the top 20 percent of their class, or have a grade point average of at least 3.0.
- Discount of up to 40 percent for having passive restraint safety systems such as airbags in your vehicle, as long as it was made after 1993.
- Multiple policy discount, which the company calls a line discount, of up to 17 percent.
- Multiple car discount, including savings of up to 20 percent for insuring two or more vehicles owned by family members who live in the same household.
- Discount for having anti-theft devices such as an alarm in your vehicle, with insurer approval.
These discounts fall into three categories: customer loyalty, driving safety, and vehicle safety. While any driver on your policy can qualify for a discount, you can use each discount only once. In addition, the availability and terms of these programs vary depending on the state where you live.
About State Farm
AutoInsurance.org lists these ratings State Farm received from the insurance industry and consumer protection organizations:
- 4/5 Overall Satisfaction Rating from J.D. Power and Associates.
- 0.49 Complaint Index Ratio from the National Association of Insurance Commissioners in 2018.
- AA rating from Standard & Poor.
- Aa1 rating from Moody’s.
- A+ rating from the Better Business Bureau in Milwaukee, Wisconsin.
- A++ financial strength rating from AM Best.
- 89 rating from Consumer Reports magazine.
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