Maybe it’s because you’re working remotely now. Or maybe your car mostly chills in the garage unless it’s Taco Tuesday. Either way—why are you paying full-price car insurance for part-time driving? It’s a question we hear a lot these days, especially from folks here in Frisco and across North Texas. With the shift to hybrid schedules, a bigger focus on the family budget, and more people just plain driving less, the old way of buying car insurance feels… well, a little outdated.
If you’ve ever typed “How can I save money on car insurance if I barely drive?” or “What’s the best insurance if I only drive on weekends?” into your phone, you’re in the right place. The answer might be the industry’s best-kept secret: usage-based car insurance. It’s hands down the cheapest car insurance for low-mileage drivers, and it’s changing the game for people who are tired of paying for miles they aren’t driving.
Let’s be honest. Your neighbor who commutes from Prosper to downtown Dallas every day shouldn’t be paying the same premium as you, whose biggest trip this week was to the H-E-B in McKinney. It just doesn’t make sense.
This is where the right insurance strategy comes in. It’s not about finding the cheapest policy, but the smartest one for your lifestyle. And for a growing number of Texans, that means paying for insurance based on how you actually use your car.
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What is Usage-Based Car Insurance, and How Does It Work?
Alright, let’s break it down. No jargon, just the straight scoop.
Usage-Based Insurance (UBI), also known as telematics insurance, isn’t a new-fangled, complicated thing. It’s actually pretty simple: it’s a type of car insurance that uses data about your driving habits to help determine your premium. Instead of relying solely on traditional factors like your age, driving record, and where you live, UBI programs look at how you personally drive.
Think of it like this: traditional car insurance is a buffet. You pay one flat price whether you eat one plate or five. Usage-based insurance is like ordering à la carte—you only pay for what you actually get.
There are generally two main flavors of UBI:
- Pay-How-You-Drive (PHYD): This model focuses on your driving behaviors. It tracks things like how hard you brake, how quickly you accelerate, the time of day you drive, and sometimes even phone usage. The safer you drive, the bigger your potential discount. Most major carriers offer a PHYD program (think Progressive’s Snapshot or State Farm’s Drive Safe & Save).
- Pay-Per-Mile (PPM): This is the star of the show for low-mileage drivers. With pay-per-mile car insurance, your rate has two parts: a low flat monthly base rate and a per-mile rate (usually just a few cents). If you drive 200 miles one month and 500 the next, your bill will reflect that. You get the same solid coverage as a traditional policy, but the cost is directly tied to your mileage.
How Do They Track It?
This is the part that gives some people pause, but it’s less “Big Brother” than you might think. Insurers typically use one of two methods:
- A Plug-In Device: A small device you plug into your car’s OBD-II port (it’s standard on most cars made after 1996 and is usually located under the steering wheel). It’s a simple, set-it-and-forget-it option.
- A Smartphone App: Many companies now offer slick mobile apps that use your phone’s sensors to track your trips. This is becoming the more popular option because, let’s face it, we have our phones with us anyway.
The data collected is pretty specific: mileage, speed, acceleration, and braking. According to the Texas Department of Insurance, this data is used to create a more accurate picture of your personal risk. It’s not about tracking where you go, but how you get there.
Is Usage-Based Insurance Worth It for Part-Time Drivers in North Texas?
Short answer: Almost certainly, yes.
Longer, more helpful answer: The lifestyle in North Texas has changed dramatically. What used to be a daily battle on the Dallas North Tollway might now be a 30-second commute from your bedroom to your home office. Or maybe you’re retired and your driving is limited to visiting the grandkids in Plano and the occasional trip to a Texas Rangers game.
If your car sits parked for most of the week, you are the ideal candidate for usage-based car insurance, especially a pay-per-mile plan.
According to data from Forbes Advisor, drivers who log fewer than 7,500 miles annually often see significant savings with UBI. To put that in perspective, the average American drives around 12,000 to 15,000 miles per year. If you’re a remote worker, a student, a retiree, or just a dedicated homebody, you are likely well below that threshold.
Let’s use a real-world North Texas example. Say your traditional insurance policy costs $150 a month. But you only drive about 400 miles per month—a few trips to the grocery store, a weekend visit to the Frisco Star, and maybe a drive out to Lake Lewisville.
With a pay-per-mile program, your bill might look something like this:
- Base Rate: $40/month
- Per-Mile Rate: $0.07/mile
- Monthly Mileage: 400 miles
Total Monthly Cost: $40 + (400 miles x $0.07) = $40 + $28 = $68
In this scenario, you’d be saving $82 a month, or nearly $1,000 a year. That’s not chump change. That’s a weekend trip, a serious dent in your holiday shopping, or a whole lot of brisket.
How Pay-Per-Mile Car Insurance Saves Remote Workers Hundreds
The rise of the car insurance for remote workers category is no accident. The pandemic permanently shifted the work landscape. Major employers in and around Frisco, from the “Frisco North” Platinum Corridor to companies all over the DFW metroplex, have embraced remote or hybrid models.
If you’ve traded your commute for a Zoom call, you are a prime candidate to stop overpaying for car insurance.
Traditional insurance models are built on the assumption of a daily commute. They price in the risk of rush-hour traffic, fender-benders on I-35, and the general wear-and-tear of daily driving. When you remove that daily commute, you fundamentally change your risk profile. You’re less likely to be in an accident, which means you should pay less. Simple as that.
Pay-as-you-go insurance aligns your premium with this new reality. It’s the fairest model for the modern work-from-home Texan. Why should your premium subsidize the risk of someone else’s 5-day-a-week commute?
Best Car Insurance Options in Frisco if You Work from Home
Here in Frisco, you have options. The key is to work with someone who understands the local market and has access to multiple carriers. As an independent agency, The Agent’s Office® isn’t tied to one company. We partner with a variety of top-rated, A+ carriers who offer competitive usage-based programs right here in Texas.
This is a huge advantage. We can shop around for you, comparing the pay-per-mile rates and program features of different insurers to find the absolute best fit for your situation. Some companies might offer a lower base rate, while others might have a more forgiving per-mile charge or better discounts for safe driving.
You don’t have to spend hours on the phone trying to figure it all out. When you’re trying to decide who do I call to get a quote on car insurance?, the answer is a local agent who can do the heavy lifting for you. We know which carriers have the most user-friendly apps, the best customer service for UBI clients, and the most competitive rates for North Texas drivers.
Pros and Cons of Usage-Based Auto Insurance
Like anything, UBI isn’t a perfect fit for everyone. It’s important to be transparent about the good and the not-so-good.
The Pros (The Really Good Stuff)
- Significant Savings for Low-Mileage Drivers: This is the big one. If you drive less, you pay less. It’s the core promise and, for most eligible drivers, it delivers. According to The Zebra, some drivers can save up to 30% or more.
- Empowers Safer Driving: When you can see your driving habits on an app—like that time you braked a little too hard on Legacy Drive—it can actually make you a better driver. Many programs offer feedback and tips, gamifying the experience of being safe on the road.
- Fairness and Transparency: Your rate is tied to your actions, not just broad demographic data. It feels fairer because it is fairer.
- Control Over Your Costs: Have a month where you take a road trip to Austin? Your bill will be higher. Have a month where the car barely leaves the driveway? You’ll see the savings immediately. You have direct control.
The Cons (The Things to Be Aware Of)
- Data Privacy Concerns: This is the elephant in the room. You are sharing your driving data with an insurance company. Reputable insurers have strict privacy policies, but as Consumer Reports has noted, it’s crucial to understand what data is collected and how it’s used. At The Agent’s Office®, we only work with carriers who are transparent about their data policies. The Texas Data Privacy and Security Act also provides consumers with rights over their personal data.
- Not for Everyone: If you’re a road warrior, a salesperson who covers all of North Texas, or an Uber/Lyft driver, UBI is probably not for you. High mileage can lead to higher-than-average bills, completely defeating the purpose.
- The “Bad Driver” Penalty: With some Pay-How-You-Drive programs (less so with Pay-Per-Mile), consistently risky behavior like speeding or hard braking could potentially increase your rates at renewal. It’s important to know the terms of the specific program. We can help you navigate that.
- Device/App Reliance: You have to be comfortable with either the plug-in device or using the smartphone app. If the tech side of things feels like a hassle, it might not be the best experience for you.
Will I Really Save Money with Telematics? (Yes, and Here’s How)
Let’s cut to the chase. The data is clear. J.D. Power has consistently studied the UBI market, and while specific savings vary, the trend is undeniable: telematics saves safe, low-mileage drivers money.
The savings come from two places:
- The Initial Discount: Most insurers offer an immediate discount just for signing up for their telematics program, often around 5-10%.
- The Performance/Mileage Discount: This is where the real savings kick in. After an initial monitoring period (or on an ongoing basis for pay-per-mile), your premium is adjusted based on your actual data. While you’re focused on lowering your premium, it’s also a great time to make sure you understand all the moving parts of your policy. For example, do you know what is a car insurance deductible and how it affects your overall costs?
So, who benefits the most?
- Remote & Hybrid Workers: The new champions of low mileage.
- Retirees: Driving patterns often change significantly after retirement.
- Students: Especially those living on or near campus.
- Public Transit Users: People who own a car but primarily use the DART rail or buses for their daily commute.
- Families with an Extra Car: That third car that’s only used for specific errands is a perfect candidate for pay-per-mile insurance.
If you’re wondering if your mileage is low enough, a good rule of thumb is the 10,000-mile mark. If you drive less than that per year, you should absolutely be exploring insurance for people who rarely drive.
(Internal Link Idea: While you’re re-evaluating your coverage, it’s a good time to understand all the parts of your policy. Here’s a quick read on What is a car insurance deductible?)
Quick Answers for Smart Drivers (Q&A Section)
We get these questions all the time. Here are the quick, no-fluff answers you’re looking for.
What is usage-based car insurance? It’s a type of insurance where your premium is based on how much—and how safely—you drive, tracked by a small device or a smartphone app.
Is usage-based insurance cheaper if I drive less? Usually yes, especially if you’re under 10,000 miles a year or work from home. Pay-per-mile programs are specifically designed to save low-mileage drivers money.
Do I have to install a device? Some companies offer app-based tracking; others use plug-in devices. It depends on the carrier. Many top-rated insurers now offer a choice.
Can usage-based insurance affect my credit or privacy? It does not affect your credit score. It does monitor driving behavior like speed, braking, and mileage. It’s vital to review the company’s privacy policy, but Texas law provides you with protections. Insurers are focused on risk assessment, not your personal movements.
Is usage-based insurance available in Texas? Yes—and The Agent’s Office® partners with top-rated carriers offering it across Frisco and North Texas. We can help you find the best local options.
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The Bottom Line: Stop Paying for Miles You Don’t Drive
The world has changed. The way we work has changed. The way we drive has changed. So why hasn’t your car insurance?
For too long, the insurance model has been one-size-fits-all. But for remote workers, retirees, and careful low-mileage drivers in Frisco and across North Texas, that model is broken. It’s costing you money every single month.
Usage-based insurance, particularly pay-per-mile, is the logical, modern solution. It puts you in the driver’s seat of your own insurance costs. It’s fair, it’s transparent, and for the right person, it’s undeniably the cheapest car insurance for low-mileage drivers.
You don’t have to navigate this alone. The options can seem overwhelming, and the details matter. This is why knowing how often you should change your insurance company in Frisco can be so powerful; it empowers you to seek out better options. Working with a local, independent agency like The Agent’s Office® means you have a guide. We live here. We understand the driving patterns and the lifestyle. We’re not a faceless call center; we’re your neighbors, committed to helping you make smarter insurance decisions. We’ll help you compare the top UBI programs from multiple A+ rated carriers to find the one that rewards you for the way you actually live and drive.
Ready to see if your low mileage can unlock big savings?
Got questions about your mileage or driving habits? Let’s chat. We’ll help you find the smartest car insurance for how you actually drive.
Request a free, no-obligation quote today, or give our Frisco office a call. Let’s stop overpaying and start saving.
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Disclaimer: Insurance rates, discounts, and carrier program availability are subject to change. The information in this article is for educational purposes only. Please contact a licensed insurance agent at The Agent’s Office® for personalized advice and the most current options available to you in Texas.
