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How to qualify for a low mileage discount

By HUB SmartCoverage Team on March 20th, 2018

The average Canadian motorist drives around 18,000km per year according to Statistics Canada, with most insurers assuming an average of 20,000km. Did you know that if you drive less than this you could be making some decent savings with a low mileage discount?

What is a low mileage discount?

Car insurance providers tend to use risk-based logic when assessing how much they will charge a driver for a policy. Therefore, the lower risk you pose when behind the wheel, the lower the cost of your insurance is most likely to be. Low-mileage discounts follow the theory that the less often you are on the road, the less likely it is that you will run into any trouble, and so many insurers offer a discount to people who drive less than the average motorists.

How much could I save with a low mileage discount?

A study by Quadrant Information Services revealed that a driver who only clocks up around 5,000 miles per year pays an average of 8.4% less for car insurance than someone who drives 15,000 miles.

How do I qualify for a low mileage discount?

Did you recently move closer to your workplace, cutting your commute time in half? Or have you recently discovered the joy of cycling from A to B on weekdays? Anything that sees the time you spend behind the wheel decreasing could mean that you qualify for a low mileage discount.

While most insurers require less than 12,000km driven yearly to qualify for a discount, it varies company to company, with some being a bit more generous.

If your annual distance driven doesn’t exceed more than 18,000km, then you should talk to your insurance provider, or search the market, to discover what options are available to you.

If you want to reduce your annual mileage, consider joining a carpooling programme for your weekday commute, or using your car as a recreational vehicle. In any case, be sure to notify your insurer of any changes.


One thing to remember is that most insurers do not base your insurance rate on mileage alone, and therefore other factors will also come into play, including your driving history, your age, where you live and the make and model of your car. If you do not qualify for a low mileage discount, don’t worry; there are plenty of other discounts that you may be eligible for.

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