Cheap Auto Insurance for Occasional Drivers in 2024 (Cash Savings With These 10 Companies!)

AAA is our top pick for cheap auto insurance for occasional drivers with rates starting at $32/mo. State Farm and Auto-Owners also offer competitive rates and discounts for infrequent drivers.

Infrequent drivers are people who are on the road less than 10,000 miles a year, and their auto insurance can be significantly cheaper than standard coverage.

Our Top 10 Company Picks: Cheap Auto Insurance for Occasional Drivers

If you have a license and don’t own a car but use a family member’s or roommate’s car now and then, insurance companies will offer low-mileage discounts, but you may be required to live in the same household as the person whose car you’re borrowing.

Enter your ZIP code into our free quote tool above to find the best auto insurance providers for your needs and budget.

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#1 – AAA: Top Pick Overall

Pros

• Discounted Rates for Infrequent Drivers: AAA offers cheap car insurance for low mileage drivers.
• Comprehensive Roadside Assistance: AAA’s auto insurance comes with roadside assistance, offering services such as towing, battery jump-starts, and flat tire changes. Learn more about AAA roadside assistance in our review of AAA insurance.
• Multiple Policy Discounts: Combining auto insurance with other AAA policies, such as homeowners or life insurance, can result in additional discounts.

Cons

• Membership Required: To avail of AAA’s auto insurance and its benefits, one must first become a member of the AAA club relevant to their region, which comes with an annual fee .
• Coverage Limitations: Some customers have reported limitations in policy options and coverage flexibility.

#2 – State Farm: Best for Customer Service

Pros

• Affordable: Competitive rates at only $33 per month for occasional drivers.
• Different Options: Offers multiple options for coverage levels and deductibles to fit different needs and budgets.
• Good Financial Strength: Has a strong financial strength rating and is known for excellent customer service. Wondering about their level of customer service? Find out in our State Farm Company Review.

Cons

• Average Discounts: While State Farm does offer discounts, they may not be as extensive as other insurance companies.
• Poor Claims Service: Claim satisfaction is below average in annual J.D. Power surveys

#3 – Auto-Owners: Best for Discount Variety

Pros

• Affordable Rates: Offers competitive rates starting at only $35 per month for occasional drivers. See our review of Auto-Owners auto insurance for more details.
• Personalized Service: Provides personalized service by working directly with independent insurance agents.
• High Customer Satisfaction: Auto-Owners has a high customer satisfaction rating and is known for their quick claims handling process.

Cons

• Availability: Auto-Owners insurance is only available in 26 states, so it may not be an option for everyone.
• May Require Agent Interaction: As a smaller insurance company, Auto-Owners may require more interaction with an insurance agent rather than online or over the phone services.

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#4 – Infinity: Best for Flexible Payments

Pros

• Wide Range of Coverage: Provides a wide range of coverage options including liability, collision, and comprehensive insurance. See what coverage options you have in our Infinity auto insurance review.
• Low Rates for High-Risk Drivers: Infinity may offer lower rates for high-risk drivers, making it a more affordable option for those with a less than perfect driving record.
• Flexible Payment Plans: Offers flexible payment plans to fit different budget needs.

Cons

• Not Available in All States: Similar to Auto-Owners, Infinity is only available in 43 states so it may not be accessible for all drivers.
• Mixed Customer Reviews: While some customers have had positive experiences with Infinity, others have reported difficulties with claims and customer service.

#5 – Progressive: Best for Qualifying Coverage

Pros

• User-Friendly Online Platform: Progressive offers a user-friendly online platform for customers to manage their policies and claims.
• Multitude of Discounts: Provides a multitude of discounts such as safe driver, multi-policy, and good student discounts. Our complete Progressive review goes over this in more detail.
• Mobile App: Offers a mobile app for easy access to policy information and claims filing on-the-go.

Cons

• Higher Rates for High-Risk Drivers: While Progressive offers discounts for safe driving, their rates may still be higher for high-risk drivers compared to other insurance companies.
• Ranks Low in Customer Satisfaction:  Progressive ranks below average in overall customer satisfaction

#6 – The Hartford: Best for Exclusive Benefits

Pros

• AARP Members Discounts: The Hartford offers discounts for AARP members, making it a popular choice for older drivers. Learn more about The Hartford in our review of The Hartford auto insurance.
• Lifetime Repair Guarantee: Provides a lifetime repair guarantee for any covered repairs made at their authorized repair shops.
• Accident Forgiveness: Offers accident forgiveness which means your rates won’t increase after your first at-fault accident.

Cons

• Higher Rates for Younger Drivers: While The Hartford offers discounts for older drivers, their rates may be higher for younger drivers.
• Limited Availability: Similar to Infinity and Auto-Owners, The Hartford is only available in select states so it may not be accessible for all drivers.

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#7 – American Family: Best for Loyalty Rewards

Pros

• Bundle and Save: American Family offers discounts for bundling multiple policies such as home and auto insurance. Read our American Family auto insurance review to find out more about the company.
• Homeowners Discounts: Provides discounts for homeowners, making it a popular choice for those who own their own homes.
• Variety of Coverage Options: Offers a variety of coverage options including liability, collision, comprehensive, and more.

Cons

• Limited Availability: American Family is only available in 19 states.
• Higher Rates for Younger Drivers:  American Family may have higher rates for younger drivers due to their perceived higher risk.

#8 – Amica: Best for Dividend Payments

Pros

• High Customer Satisfaction: Amica consistently ranks high in customer satisfaction surveys, making it a popular choice for those looking for reliable and quality insurance. Check out our Amica auto insurance review to learn more about the company’s customer service and claims ratings.
• Multiple Discounts Available: Offers a variety of discounts including multi-policy, loyalty, and good student discounts.
• Online Services: Amica’s online platform is user-friendly and offers convenient services such as bill pay and policy management.

Cons

• Limited Availability: Amica is not available in Hawaii.
• Home Insurance not Available in All States: Amica does not offer home insurance in all states, which may be a drawback for those looking to bundle their policies.

#9 – Metromile: Best for Low-Mileage Drivers

Pros

• Pay-Per-Mile Option: Metromile offers a unique pay-per-mile option for those who don’t drive often, potentially saving them money on their insurance premiums. Learn how mileage-based insurance works in our Metromile auto insurance review.
• Monitoring App Useful When Car Is Stolen: Metromile’s app allows customers to track their car’s location in case it is stolen, providing added security and peace of mind.
• Roadside Assistance: Metromile offers roadside assistance as an add-on option, which can be convenient for drivers in need of emergency services.

Cons

• Constant Monitoring: Some customers may feel uncomfortable with the constant monitoring of their driving habits that is required for the pay-per-mile option
• Not Suitable for Frequent Drivers: Metromile may not be a cost-effective option for frequent drivers.

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#10 – Liberty Mutual: Best for Occupational Discount

Pros

• Variety of Policy Options: New car replacement, original parts coverage, teacher’s auto insurance, and more that can be tailored to meet drivers’ needs
• Rewards for Safe Drivers: Deductible funds help good drivers save money after their first accident
• Usage-Based Savings for Safe Drivers: Track mileage and driving habits to save up to 30%. Learn more in our Liberty Mutual RightTrack review.

Cons

• Expensive: Higher-than-average rates for high-risk drivers, seniors, and drivers under 25.
• Poor Customer Satisfaction: Ranks below average for customer and claims service in annual J.D. Power survey

How to Get Cheap Auto Insurance for Infrequent Drivers

How much does occasional driver insurance cost? By the title, you may think an occasional driver is someone who doesn’t drive very often. While this definition is partly true, it does not encompass the whole meaning of the term.

As an occasional driver, you can expect lower-than-average rates on your car insurance coverage since you pose less risk to most insurance companies. But it’s important to know whether you qualify a part-time driver to benefit from the lower cost of coverage.

Auto Insurance for Occasional Drivers: Monthly Rates by Coverage Level & Provider

You may not qualify for a low-mileage discount if you drive more than that, but you can still get cheap rates from pay-as-you-go auto insurance companies.

Overall, the amount you will pay for car insurance depends on several factors. Insurance companies use these common factors that affect auto insurance rates to set premiums:

• Age
• Gender
• Marital status
• Annual mileage
• ZIP code
• Car make and model
• Driver history
• Credit score
• Coverage types

In some cases, occasional drivers may pose more of a risk to insurance companies because they are often teen drivers or drivers over 65 years of age. The best way to discover whether being an occasional driver helps you save a significant amount on coverage is to compare rates from multiple providers.

Cheap Auto Insurance Policies for Infrequent Drivers

You might be wondering, “Does an occasional driver need insurance?” Well, infrequent drivers must carry car insurance, but they have several policy options to choose from designed for low-mileage drivers.

Insurance companies also offer discounts on car insurance to occasional drivers, and certain companies may allow you to save as much as 30% on coverage if you drive less than 10,000 miles annually. 

Pay-Per-Mile and Usage-Based Auto Insurance

Pay-per-mile insurance is a great option for drivers who clock fewer than 10,000 miles annually.

With most pay-as-you-go car insurance programs, you’ll pay a daily set rate — usually a few dollars per day — and a small fee for miles driven daily.

For example, your set fee might be $3 a day, with a $0.05 charge per mile. So if you drive five miles one day, your total amount that day would be $3.25.

Compare usage-based rates in the table below to find cheap auto insurance for infrequent drivers.

If you can’t find a pay-per-mile program in your state, see if any companies offer a discount on car insurance policies for driving less.

Minimum Liability Insurance

Drivers may choose to drop extra coverages and carry only the minimum car insurance required in their state. Usually, this means carrying only liability auto insurance. Though switching to a liability-only policy can significantly reduce rates, we only recommend it if your car is old and not worth much. Learn more about cheapest liability-only auto insurance in our guide.

Before dropping any coverage, make sure you understand the difference between collision and comprehensive auto insurance coverage to make sure you don’t need it. For example, without it, you’ll have to pay out of pocket for repairs if your car gets damaged.

However, if your car is old and the cost of collision and comprehensive coverages would equal 10% or more of your car’s value in a year, you can consider dropping these coverages to reduce prices.

Parked Car Insurance

In some cases, insurance companies offer auto insurance for a parked car, sometimes known as storage or stored car insurance. These policies only apply to drivers storing the vehicle and not driving it.

Once you start driving the car regularly, you’ll need to purchase a regular auto policy or pay-per-mile auto insurance. 

However, if you won’t be driving for a year or so, it’s worth it to purchase a parked car insurance policy to save on auto insurance until you start driving again. Check out our detailed guide on the best parked car insurance.

Classic Car Insurance

If your car qualifies as a classic car, you should buy classic car insurance. Since classic car insurance is for pleasure use only, they’re good policies for infrequent drivers with older vehicles.

Did you know #ClassicCar insurance can extend to vintage motorcycles, military vehicles, and even some tractors? See how storage, usage, and more play a part in determining coverage. https://t.co/vfJD2ChkYd pic.twitter.com/uy0Dq1uc3M

— Progressive (@progressive) April 9, 2024

Generally, a car must be at least 20 years old to be a classic collector car.

Read More: Does my car qualify for classic auto insurance?

Adding Occasional Drivers to a Policy

Adding a driver to car insurance is not difficult, but your insurance company may have you answer a few questions. Once the added driver is on your insurance policy, you will notice your rates have increased. But if the driver added is an occasional driver, you should be able to get away with paying less for that person’s coverage.

Whether your insurance costs go up a little or a lot, you still need to let your insurance company know when someone else is driving your car. Otherwise, your provider could deny your insurance claim if that person was driving and in an accident.

One common question that arises when considering adding an occasional driver to a car insurance policy is, “how much does it cost to add an occasional driver to insurance?” The answer varies significantly from one insurance provider to another and may depend on factors such as the occasional driver’s age, driving record, and the frequency with which they are expected to use the vehicle.

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Auto Insurance Discounts for Infrequent Drivers

Most car insurance companies offer discounts for various reasons. Some of the most common auto insurance discounts available are:

• Accident-free
• Safe driving
• Defensive driver
• Military
• Alumni
• Safety devices
• Good student
• Homeowner
• Multi-policy
• Paid-in-full
• Paperless

Discounts on coverage typically help policyholders save anywhere from 5% to 25%, so ask your provider if you or anyone listed on your policy qualifies for a discount on coverage.

Bottom Line on Finding Cheap Auto Insurance for Infrequent Drivers

If you only drive less than 10,000 miles a year, you may be considered an infrequent driver. AAA, State Farm, and Auto-Owners provide cheap auto insurance for infrequent drivers. Teens will get better rates with Geico, but consider signing up for pay-as-you-go car insurance for new drivers for the cheapest rates possible. 

 

Pay-per-mile companies like Metromile track only your mileage to set rates, while other usage-based auto insurance companies track driving habits as well, which can raise rates. Shop around with multiple companies to find the cheapest car insurance for infrequent drivers. 

You can also save money on coverage by utilizing discounts. Lowering your coverage level or increasing your deductible are ways to get lower rates on coverage as well, but if you’re ever in an accident, you may regret choosing these routes. Explore your auto insurance options by entering your ZIP code into our free comparison tool below today.

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