By the Lapera Insurance Team · Reviewed by Joe Lapera, Licensed Illinois Insurance Agent (IL Lic #100722394)
The commute is gone. Maybe you retired this spring, or your employer finally made working from home permanent. The car that used to rack up miles every weekday now sits in the driveway most of the week, and the insurance bill looks exactly the same. It is a fair question: should driving less change what you pay? Here is how we answer it across the desk, including the part people often miss about the second car that barely moves.
Driving fewer miles can lower your Illinois car insurance cost, but how depends on the carrier: some rate on annual mileage and use, others reward it through a telematics app. When you retire or start working from home, tell your agent, update each car's use, ask whether telematics fits, and price the car that rarely moves. Keep liability and uninsured motorist limits where they are.
Here is the short version of what we tell people in your seat: less driving is good news, but it is not a reason to cut protection. It is a reason to make sure the policy describes how your household actually drives now. That means the right use on each car, the right primary driver on each car, and an honest look at whether a program that measures your driving would work for you. This guide walks through each of those, explains how insurers know how much you drive, and covers the one move that can cost far more than it saves: dropping coverage on a car that is still registered.
Why Does Driving Less Matter to Your Car Insurance Price?
TL;DR: Fewer miles means fewer chances to be in a crash, so many carriers treat mileage and vehicle use as a rating factor, though each carrier handles it differently.
The logic is simple. The Insurance Information Institute puts it this way: the more miles you drive, the more chance for accidents. It also notes that you will generally pay more if you use your car for work or to commute long distances, and less if you drive only occasionally, which some companies call pleasure use.
Illinois regulators say the same thing. The Illinois Department of Insurance's Auto Insurance Shopping Guide lists "use of vehicle, how far you drive to work, and annual mileage" as a factor that can affect your premium. It also describes a low annual mileage discount for vehicles driven less than a set number of miles a year, usually 7,500.
Here is where it gets less simple. Carriers do not all treat mileage the same way. Farmers, for example, says it does not use your annual mileage to set auto rates outside a single state, and Illinois is not that state. Farmers' view is that where you drive counts for more than how far. Instead, Farmers rewards lower and safer driving through its Signal® telematics app, which we cover below. Other carriers do rate on annual mileage and use. That is exactly why we check across Farmers and the Farmers family of carriers, plus additional markets, rather than assuming one approach fits every household.
Mileage is also only one factor among many. Your drivers, their records, the cars, your coverage choices and your address all move the price, as our guide to Illinois car insurance cost by driver profile explains. Driving less helps where a carrier counts it, but it rarely outweighs everything else.
Lapera Insurance Agency is a Farmers Insurance agency at 530 Barron Blvd in Grayslake, Illinois. Our team has served Illinois families since 1993, with over 40 years of combined experience, and we review policies every week for clients who just retired, went remote or parked a second car for good. We write auto coverage through Farmers and the Farmers family of carriers, plus additional markets. Every guide on this site is reviewed by a licensed Illinois agent before it publishes.
How Does an Insurer Know How Much You Drive?
TL;DR: Most policies start with what you tell the insurer about use and mileage, and some programs measure actual driving through an app, a device or your car's own connected data.
There are a few ways your mileage and use end up on a policy, and many households have more than one of them in play:
- What you tell us. When a policy is written, the application asks how each car is used (commuting, business or pleasure) and, with many carriers, roughly how many miles it is driven a year.
- Odometer readings. Some carriers ask for a reading or a photo, and mileage can also show up in vehicle history records.
- Telematics apps and devices. A smartphone app or plug-in device records actual trips, including miles, and often how and when you drive.
- Connected-car data. Some newer vehicles can share driving data with an insurer, usually only if you opt in. Ask what you have agreed to in your car's settings and apps.
The difference between those methods matters. The Insurance Information Institute notes that insurers generally ask drivers to estimate their annual miles when they apply, and that many drivers underestimate their mileage while some overestimate it. Telematics, by contrast, continuously monitors mileage, driving behavior and other factors. The III also notes that tracking has raised privacy concerns, and that some states require disclosure of tracking practices.
One more point worth keeping in mind. Farmers notes that most accidents occur within five to ten miles of home. Retiring or working from home cuts the long commute, but the short trips to the store, church, the doctor or the grandkids' games stay. Those are the miles a policy still has to protect.
What Should You Change When You Retire or Start Working From Home?
TL;DR: Tell your agent about the change, update how each car is used and who drives it most, and ask how your carrier treats lower mileage before you assume anything about the price.
You are far from alone in this. The National Household Travel Survey found the share of U.S. workers working from home five or more days a week rose from 12% in 2017 to 19% in 2022, and daily commute trips per person fell from 0.59 to 0.42 over the same period. A lot of policies were written for a commute that no longer exists.
Retirement
The daily commute ends, and most driving shifts to errands, appointments and visits.
Working from home
A full-time or hybrid remote schedule can take a car off the road most weekdays.
A car that stops commuting
The old commuter car may become a second car that only moves a few times a month.
A spouse who drives less
When one spouse stops driving often, who is the primary driver on each car may change.
Downsizing or moving
A move closer to family, shops or doctors can shorten everyday trips and change garaging.
Seasonal time away
Months away from Illinois can leave a car parked at home for a long stretch.
When one of those changes happens, here is what we suggest bringing to your agent:
- Tell your agent. A two-minute call is enough. Do not wait for renewal, and do not assume the carrier already knows.
- Update each car's use. A car that used to commute may now be pleasure use. How much that matters depends on the carrier.
- Update estimated mileage, where the carrier asks for it. Give an honest estimate for each car, not a hopeful one.
- Confirm the primary driver on each car. If one spouse now drives one car almost exclusively, the policy should say so.
- Ask what the change does to the price. With some carriers it can matter; with others, like Farmers, annual mileage is not a rating factor in Illinois, and telematics is the route instead.
Keep use and mileage accurate in both directions. If you go back to commuting, tell us. Under Illinois law (215 ILCS 5/154), a misrepresentation in a written application can void a policy only if it was made with actual intent to deceive or if it materially affects the insurer's acceptance of the risk. An honest mistake is not the same as a deliberate one, but the safest policy is simply an accurate one. This is general information, not legal advice.
Is a Telematics or Pay-Per-Mile Program Worth It If You Barely Drive?
TL;DR: It can be, if your miles are genuinely low and your habits are calm, but these programs watch how and when you drive as well as how far, and riskier driving can work against you.
For a household whose miles really dropped, a program that measures actual driving is one of the clearest ways to get credit for it. With Farmers, that program is Signal®, a smartphone app. According to Farmers, Signal monitors when you are distracted by phone use, how often you brake hard, when you drive and how many miles you drive. You get an initial discount for using the app, and a renewal discount is possible. Farmers is also clear that riskier driving behaviors could result in a higher renewal premium rather than a discount. Signal is not available in Florida, Hawaii or New York; Illinois is not on that list, and we confirm eligibility on your actual quote.
Other carriers use other designs. The National Association of Insurance Commissioners' consumer guide to usage-based insurance describes several types, including pay-as-you-drive, pay-how-you-drive and distance-based insurance. Some programs measure miles driven, time of day, where the car is driven, hard braking, rapid acceleration and phone use. The NAIC also says plainly that while these programs are promoted for their discounts, they can also lead to higher premiums.
Pay-per-mile is the distance-based version of the idea: part of the price is tied to the miles you actually drive rather than an estimate. In concept, it fits a car that barely moves. Whether a distance-based option is available to you, and whether it beats a standard policy with the right use and a telematics program, depends on the carrier and the household. That is a comparison we can run for you.
Before you enroll in any program, it is worth asking:
- What exactly is tracked? Miles only, or also braking, phone use, time of day and location?
- Can it raise my price? Some programs can, at renewal, if the driving data looks risky.
- Who drives the car? If a grandchild or a visiting adult child borrows it, their driving may count too.
- How is my data used and shared? The NAIC suggests making sure you trust your insurer with your information.
For how telematics fits alongside every other credit, see the telematics section of our Illinois auto insurance discounts guide.
What Should You Do With a Second Car That Rarely Moves?
TL;DR: Keep liability on any car that is still registered, and talk with us before changing anything else, because what is allowed for a truly stored car depends on Illinois rules and on the carrier.
This is the question we hear most from retired couples. Two cars made sense with two commutes. Now one of them leaves the garage a few times a month. If the change came because a spouse stopped driving, our guide to what happens when a spouse or driver stops driving covers that side of it. Here we focus on the car itself.
Start with the law. Illinois' mandatory insurance statute, 625 ILCS 5/7-601, says no one may operate, register or maintain the registration of a vehicle designed for public roads unless it is covered by a liability insurance policy. The statute exempts inoperable or stored vehicles that are not operated, as defined by rules and regulations of the Secretary of State. In plain terms: if the car has plates and a current registration, it needs liability coverage, even if it rarely moves.
From there, you have a few honest options:
- Keep it fully insured. If anyone in the household might drive it, even occasionally, it should carry the same protection as the car you drive every day.
- Keep it, but describe it accurately. Make sure the policy lists the right primary driver and the right use. Ask us how your carrier prices a lightly used second car.
- Store it properly, with a plan. If the car will truly sit, ask us whether a carrier will write comprehensive-only coverage on a genuinely stored car. That is a carrier decision, and it does not work for a car that is still being driven. Talk with us and the Secretary of State about registration status before dropping liability.
- Sell it or pass it on. If no one needs it anymore, removing it from the policy once the new owner has coverage is often the cleanest answer.
A couple in the suburbs retire within a year of each other. Between them they have a newer SUV and an older sedan that used to handle the daily commute. When they call, we update the SUV to pleasure use with the right primary driver, talk through whether a telematics program fits how they drive now, and look at the sedan separately. It still has plates, so it keeps liability and uninsured motorist coverage matched to the SUV. Because they plan to keep it for a grandchild who will be licensed in two years, they decide to keep it insured rather than store it. This scenario is illustrative only. It is not a quote, a savings estimate or a coverage determination; the right setup depends on the carrier, the cars and the household.
Why Is Dropping Coverage on a Parked Car Risky in Illinois?
TL;DR: Illinois checks insurance on registered vehicles electronically, so cancelling coverage on a plated car that is just parked can lead to a registration suspension and a reinstatement fee.
Illinois does not wait for a traffic stop to find an uninsured car. Under 625 ILCS 5/7-603.5, the Secretary of State verifies coverage on registered vehicles electronically at least twice per calendar year. If a vehicle does not verify, the owner is notified and has 30 calendar days to show proof of insurance, or proof that the vehicle is no longer operable. If the owner does not respond, the Secretary suspends the vehicle's registration. Clearing that suspension takes proof of insurance and a $100 reinstatement fee for a first violation under 625 ILCS 5/7-606. A gap in coverage can also follow you into your next quote. Our guide to getting car insurance after a lapse in Illinois covers what happens next and how to fix it.
Which Coverage Should You Never Cut Just Because You Drive Less?
TL;DR: Fewer miles means fewer chances to crash, not a smaller crash, so liability limits, matching uninsured motorist coverage and collision on a car you still drive should stay put.
This is the trap we see most often. Someone drives less, feels like they are using the insurance less, and trims the policy to match. But a crash on a short trip to the pharmacy can be just as serious as one on the expressway. Driving less changes how often you are on the road. It does not change what is at stake when something goes wrong.
| Move | Why | Our take |
|---|---|---|
| Update each car's use and estimated mileage | Keeps the policy accurate and can matter with carriers that rate on use and mileage | Do it |
| Enroll in a telematics program | Can reward calm, low-mileage driving, but riskier driving could raise a renewal | Ask first |
| Comprehensive-only on a genuinely stored car | A carrier decision that depends on registration status and how the car is kept | Ask first |
| Cancel liability on a car that still has plates | Illinois requires liability to maintain registration, and electronic checks can lead to suspension | Do not |
| Lower uninsured motorist coverage below your liability limits | Leaves you and your passengers exposed when the other driver has little or no insurance | Do not |
Liability. Your liability limits protect your home, savings and retirement income if you cause a serious crash. Illinois only requires 25/50/20, as our Illinois auto insurance guide explains, and that is thin for anyone with assets. If you have a lot to protect, a personal umbrella policy can sit on top.
Uninsured and underinsured motorist coverage. Insurance Research Council estimates put 15.2% of Illinois drivers uninsured in 2023, ranking Illinois 17th nationally, against a U.S. rate of 15.4% (IRC study, 2025, via the Insurance Information Institute). How far you drive does not change who hits you. Keep this coverage matched to your liability limits.
Collision on a car you still drive. If you would struggle to repair or replace the car from savings, collision still earns its place, even at lower mileage. On an older car worth very little, it can be a judgment call, and we will show you the math honestly.
If the goal is a lower bill, start with the levers that do not shrink your protection: the right use and primary driver on each car, a telematics program if it fits, and the discounts you already qualify for. Cutting limits is the last place to look, not the first.
The Bottom Line
Driving less is good news, and it deserves a phone call. Whether lower mileage changes your price depends on the carrier: some rate on annual mileage and use, while Farmers does not use annual mileage to set Illinois rates and rewards lower, safer driving through Signal instead. Either way, the policy should describe how your household actually drives now, car by car.
While you are at it, look at the whole household picture. A second car, a home and an auto policy that are not working together can matter more than mileage, so ask about multi-car credits and see whether bundling home and auto makes sense in Illinois. Keep liability on every plated car and uninsured motorist coverage matched to your liability limits. Then send our Grayslake office your declarations page, or visit our auto insurance page, and a licensed agent will compare what fits across Farmers, the Farmers family of carriers and additional markets.
Related Questions
Does driving less lower car insurance in Illinois?
It can, depending on the carrier. The Illinois Department of Insurance lists use of vehicle, distance to work and annual mileage as rating factors and describes low annual mileage discounts, usually for vehicles driven under about 7,500 miles a year. Some carriers do not rate on mileage and reward lower, safer driving through telematics instead. Ask your agent how your carrier handles it.
Does Farmers use mileage to set car insurance rates?
According to Farmers, it does not use annual mileage to determine auto insurance rates, with one state exception that is not Illinois. Farmers instead offers Signal, a smartphone app that tracks phone distraction, hard braking, when you drive and how many miles you drive. You get an initial discount for using it, but riskier driving could raise your renewal premium.
Should I tell my car insurance company I work from home now?
Yes. Tell your agent whenever a car's use or the primary driver changes, in either direction. Depending on the carrier, it may or may not change the price, but it keeps the policy accurate. Illinois law lets an insurer void a policy over a misrepresentation made with intent to deceive or that materially affects the risk.
Can I cancel insurance on a car I am not driving in Illinois?
Not while it is registered. Under 625 ILCS 5/7-601, a vehicle must carry liability insurance to be operated or to keep its registration, with an exemption for stored vehicles as defined by Secretary of State rules. The state verifies coverage electronically at least twice a year. Talk with your agent and the Secretary of State before dropping liability.
Is pay-per-mile car insurance a good idea for retirees?
It can be for a car that truly barely moves. The NAIC describes distance-based insurance as one type of usage-based insurance and notes these programs can also lead to higher premiums. Whether it beats a standard policy with the right use and a telematics program depends on the carrier and the household, so compare before switching.
Last reviewed October 2026 by Joe Lapera, Licensed Illinois Insurance Agent (IL Lic #100722394). Figures verified against the sources linked above on that date.