Haris Ashley
State Farm is one of the few car insurance companies that offer a low-mileage discount. The company does not disclose the exact discount amount, but it depends on factors like driving history, address, vehicle type, and ZIP code. State Farm defines low mileage as driving fewer than 7,500 miles per year, and customers can lose the discount if their annual mileage increases beyond this threshold. To monitor mileage, State Farm contacts customers annually to collect odometer information or uses a small receiver to track driving behaviour. State Farm's Drive Safe & Save program also offers discounts of up to 30% based on driving characteristics and safe driving practices.
| Characteristics | Values |
|---|---|
| Discount Criteria | Driving fewer than 7500 miles per year |
| Discount Amount | Varies depending on driving history, ZIP code, vehicle type, address, and car type |
| Discount Loss | Occurs if annual average mileage increases beyond 7500 miles |
| Discount Verification | Annual odometer information collected by a State Farm agent |
| Tracking Devices | In-Drive device provided by State Farm; placed on the windshield or by the gear shift |
| Tracking Apps | Drive Safe & Save app; Steer Clear app for drivers under 25 |
| Exclusions | Certain policies in certain states; antique/classic cars, motorcycles, RVs, and golf carts |
| Unavailable Regions | Massachusetts and Rhode Island |
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What You'll Learn
State Farm's low-mileage discount criteria
State Farm is one of the few car insurance companies that offer a low-mileage discount. However, the company does not disclose how much you can save with this discount. The exact amount you save depends on your driving history, ZIP code, and vehicle type.
State Farm classifies low mileage as driving fewer than 7,500 miles per year. A State Farm representative will contact you annually to collect your vehicle's odometer information and confirm that you have driven fewer than 7,500 miles. If your annual average mileage has increased, you will lose the discount.
State Farm also offers the Drive Safe & Save program, which bases your rate on your mileage and driving characteristics. After enrolling in the program, you can turn on Accident Assistance, which offers help during a detected accident. You can also ask Alexa how you're doing with your Drive Safe & Save discount.
In addition to the low-mileage discount, State Farm offers various other discounts, such as the Steer Clear app, which offers drivers under 25 savings on auto insurance. Maintaining good credit characteristics and a good driving record can also help keep your rates lower.
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State Farm's Drive Safe & Save program
State Farm is one of the few car insurance companies that offer a low-mileage discount. The exact discount amount depends on your driving history, ZIP code, and vehicle type. However, State Farm does not disclose what they consider to be low mileage, although insurance companies typically define low mileage as less than 7,500 miles per year.
To enrol in the Drive Safe & Save program, you need to download the State Farm app and enrol your vehicle. Most private passenger vehicles are eligible, including cars, trucks, SUVs, and minivans. After enrolling, you will need to complete the setup, which includes providing odometer readings and accepting consent to participate. You will receive a discount just for enrolling, but you must complete the setup to keep the discount.
It is important to note that data collected through the Drive Safe & Save program is not currently used to determine rates, but State Farm reserves the right to change that in the future. Some users have expressed concerns about the potential for DSS data to be used unfairly against drivers in the event of an accident. Additionally, the low-mileage discount and the Drive Safe & Save discount cannot be combined, and customers can only have one or the other.
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State Farm's insurance rates and mileage
State Farm is one of the few car insurance companies that offer a low-mileage discount. The company does not disclose the amount of the discount or what it considers to be low mileage. However, according to some sources, insurance companies typically consider driving less than 7,500 miles per year to be low mileage. State Farm customers can qualify for the low-mileage discount if they drive fewer than 7,500 miles per year. A State Farm representative will contact the customer annually to collect their vehicle's odometer information and confirm they have driven fewer than 7,500 miles. If the customer's annual mileage increases above 7,500, they will lose the discount.
State Farm also offers a Drive Safe & Save program, which bases insurance rates on usage. Customers who sign up for the program receive an In-Drive device to plug into their car's OBDII diagnostic port. The device records and sends information about the customer's braking, turning, acceleration, speed, mileage, and driving hours. State Farm then uses this information to calculate a discount of up to 30%. Customers can also enable Accident Assistance, which offers help during a detected accident.
In addition to low mileage and usage-based discounts, State Farm offers several other ways for customers to save on their car insurance. Maintaining a good driving record can help lower rates, and drivers under 25 can earn savings through the Steer Clear app. Customers can also maintain good credit characteristics and financial responsibility to keep their rates lower. Finally, State Farm offers various discounts, and a local State Farm agent can help customers find the best coverage and discounts for their situation.
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State Farm's insurance alternatives
State Farm is one of the largest car insurance companies in the US. While it is a popular choice for many, some customers have reported that their auto rates have increased by a large percentage at renewal. State Farm also does not disclose how much you can save with their low-mileage discount. If you are looking for alternatives to State Farm Insurance, there are several competitors in the market that offer similar or specialised insurance products. Here are some options:
Bestow
Bestow is an insurance technology company that develops products and software for insurance companies. They provide an application programming interface (API) and offer a range of insurance products.
New York Life Insurance Company
New York Life Insurance Company operates in the financial services and insurance sectors. They offer a variety of insurance products, including term life, whole life, universal life, long-term care, and individual disability insurance.
Singlife
Singlife operates in the insurance and investment sectors, providing a range of insurance products including life, medical, critical illness, disability, and more.
Everlake
Everlake is an insurance company that offers life insurance and annuity products. Their policies are designed to provide financial coverage for individuals.
Safeco
Safeco is a company that provides personal insurance products, including vehicle and property insurance.
Travelers
Travelers is a property casualty insurance company that offers personal insurance products such as auto, home, renters, and valuable items insurance.
FarGlory Life Insurance
FarGlory Life Insurance provides life insurance and related financial services. They offer products such as life, health, injury, and other financial services.
Farmers Insurance Group (Farmers)
Farmers Insurance Group provides insurance and financial products and services, including auto insurance, home insurance, umbrella insurance, and vacation insurance.
Frontline Insurance
Frontline Insurance provides home and commercial property insurance, specifically serving coastal homeowners and businesses in the Southeast United States.
Northwestern Mutual
Northwestern Mutual offers financial planning and life insurance services, including retirement planning, college savings plans, estate planning, and investment advisory services.
USAA
USAA is another insurance company that offers a low-mileage discount. They also provide a range of other insurance services, but eligibility is limited to those with military connections.
These alternatives to State Farm Insurance may offer similar or specialised insurance products that better suit your needs and preferences. It is always a good idea to compare quotes and offerings from multiple companies before making a decision.
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State Farm's insurance rates and driving history
State Farm is a mutual insurance company, meaning that it is owned by its policyholders. It offers auto insurance with competitive rates, which are generally lower than the national average. The exact premium a customer pays depends on various factors, including the driver's age, driving history, address, and vehicle type.
State Farm offers a low-mileage discount for drivers who travel no more than 7,500 miles per year. The amount saved through this discount depends on the driver's record, address, and vehicle type. To qualify for the discount, a State Farm representative will contact the customer annually to collect their vehicle's odometer information and confirm they have driven fewer than 7,500 miles.
State Farm also offers a Drive Safe & Save program, which tracks a customer's driving habits and offers discounts of up to 30% for safe driving. This program requires customers to install an In-Drive device in their car's OBDII diagnostic port, which records information about their driving, including braking, turning, acceleration, speed, mileage, and driving hours.
State Farm offers several other ways to save on car insurance premiums, including bundling discounts, multi-car discounts, safe vehicle discounts, and anti-theft discounts. Customers can also save by maintaining good credit characteristics and being financially responsible.
While State Farm offers competitive rates for drivers with accidents or speeding tickets on their records, it has been noted that their rates for drivers with poor credit are higher than the national average and other competitors. Therefore, drivers with poor credit may find cheaper rates with other insurance providers.
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Frequently asked questions
State Farm does not disclose what they consider to be low mileage, but insurance companies typically consider driving less than 7,500 miles per year to be low mileage.
State Farm will contact you annually to get your odometer reading and confirm you have driven fewer than 7,500 miles per year. The discount amount varies depending on your driving history, ZIP code, and vehicle type.
State Farm offers a Drive Safe & Save program that tracks your driving behaviour and offers a discount of up to 30% for safe driving. You can also maintain good credit and a good driving record to lower your rates.
