Glossary
Annual mileage
How many miles a car is driven in a year, a rating factor because more time on the road means more chances of a claim.
Also called: miles driven per year, yearly mileage
Annual mileage is how many miles you expect to drive each vehicle over a year. Insurers ask for it when you get a quote because exposure drives risk: a car driven 20,000 miles a year spends far more time in traffic than one driven 5,000, and claims tend to rise with it.
Most insurers group mileage into bands and charge less for low-mileage cars, sometimes through a named low-mileage discount. How much it counts varies. In California, Proposition 103 makes miles driven annually the second most important of the mandatory rating factors, after driving safety record. Insurers may check your estimate against odometer readings from inspections, service records or vehicle history data.
To have mileage counted precisely, you can choose pay-per-mile insurance, which charges a base rate plus a per-mile fee measured by a device or the car's connected system, or a telematics program that factors in how much you drive. Estimate honestly. Understating mileage to get a lower rate is misrepresentation and can lead to a premium adjustment or, in serious cases, trouble with a claim. If you start working from home or retire, tell your insurer, since lower mileage can mean a lower premium.
Last reviewed October 4, 2026