Low Mileage Car Insurance
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Drive less, save more
Do you drive less than 8,000 km a year? If yes, low mileage insurance could be the right choice for you. This type of auto insurance is designed for drivers who use their car occasionally or only for short trips, helping you save on your car insurance premiums without compromising coverage.
Whether you own a secondary car, commute only short distances, or drive an Off-Peak Car, DirectAsia's low usage insurance offers meaningful savings for responsible drivers.
Why Choose Low Mileage Insurance?
Benefits at a glance:
- Lower car insurance premiums for driving less - Save 20% or more on your insurance premium when you declare less than 8,000 km annually.
- Enjoy flexible Mileage rollover benefit at renewal - unused mileage can be rolled over into your next policy year.
- Peace of mind with same coverage — you still enjoy the same protection as a standard policy, but at lower insurance rates.
- Simple sign-up — just declare your odometer reading at the time of your insurance quote.
This plan is especially valuable if you:
- Work from home or rarely commute.
- Own a secondary car used only for leisure.
- Drive short distances daily.
- Have an Off-Peak Car and want to lower your car insurance premiums.
Get more as a Shell GO+ member
Get $50 worth of Shell fuel when you purchase a new low mileage policy and submit your Shell GO+ ID. More details.
How Does Low Mileage Insurance Work?
Think of this plan as a step between traditional coverage and pay per mile insurance. Instead of paying per mile, you commit to an annual mileage cap (8,000 km).
- At policy inception, declare your odometer reading.
- Your insurance company applies a discount to your base rate automatically.
- If you exceed the mileage cap, your policy will be converted to a standard plan with an adjusted premium.
The best part is, sign up is easy! Simply confirm you drive less than 8,000KM per year when purchasing your DirectAsia motor insurance policy and declare your current odometer reading.
Benefits of DirectAsia’s Low Mileage Insurance
Save 20% or more when driving less. Declare your average miles as less than 8,000km at time of quote and the savings will automatically be applied to your price.
As a bonus, any unused mileage by the end of the insurance period can be rolled over to the next policy year on renewal with DirectAsia. Please keep in mind if you are going to exceed or have exceeded the permitted mileage specified in the policy at anytime within the insurance period, you must notify us immediately. We will then convert your Low Mileage usage to a standard plan with additional premium payable by you.
If you have not advised us that you will or have exceeded the permitted mileage allowed, do note that there will be an additional excess of S$5,000 applicable to you on each and every claim.
It is thus very important that you declare the correct odometer reading when you sign up for the policy. Additionally, do take note that your policy coverage will not be activated and we will not pay any claim if your car odometer reading is less than the reading declared on your policy schedule. To learn more about our car insurance policies for low mileage drivers, don’t hesitate to get in touch with us.
Frequently Asked Questions About Low Mileage Car Insurance
Who is eligible for Low Mileage usage Car policy?
This Low Mileage plan is suitable for drivers who cover 8,000km or less per year - typically those who rarely use their cars or only drive short distances. We will simply require your odometer reading declaration to qualify for this upon insurance policy inception.
How can I benefit from a Low Mileage usage Car policy?
As a low mileage driver, you enjoy a discount on your car insurance while keeping full protection with DirectAsia's Low Mileage plan.
Can Off Peak car scheme take up a Low Mileage usage Car policy?
Yes, Off-Peak cars are eligible for this plan.
How can I tell whether my mileage will exceed 8,000km or not?
As a rule of thumb, assuming you drive every day, 8,000km in a year equates to average of 21.9km per day.
I’m not sure whether my mileage will exceed 8,000km a year?
For peace of mind, if you are not sure, we do not recommend Low Mileage car insurance as you will be subject to additional excess of S$5,000 in case you are involved in an accident when mileage exceeds 8,000km.
My Low Mileage usage Car policy period is more/less than a year, what is my permitted mileage?
The permitted mileage allowed will be daily prorated accordingly if your policy period is more or less than a year.
How should I declare my current odometer reading?
You declare during the sign up for your low mileage car insurance policy. To make it easy for you, you can declare the reading by rounding it up to the nearest 100km. For example, if your odometer reading is 60,123km, you can declare as 60,200km when you sign up with us.
What happens when I am going to exceed my permitted mileage?
If you foresee your mileage is going to, or has, exceeded the permitted mileage allowed, you must notify us immediately. We will convert your low mileage car insurance policy to a standard plan with additional premium payable by you.
In the event of an accident, what happens if I exceeded the permitted mileage?
If you have not advised us that you have exceeded the permitted mileage allowed, there will be an additional excess of S$5,000 applicable to each and every claim.
If the total claim amount is S$5,000 or less, you will be required to settle this amount with the third-party/workshop directly.
If the total claim amount is more than S$5,000, DirectAsia will collect the full S$5,000 excess from you and settle the total claim with the third-party/workshop on your behalf. For example, if your total claim amount is S$10,000, we will collect S$5,000 excess from you and pay the S$10,000 claim amount to the parties concerned.
I drive less than my permitted mileage, can it be carried to the next policy year?
Yes, the unused mileage can be rolled over to the next policy year on renewal.
What happens if I overdeclared my odometer reading?
It is very important that you declare the correct odometer reading when you sign up for the low mileage car insurance policy. Do take note that your policy coverage will not be activated and we will not pay any claim if your car odometer reading is less than the reading declared on your policy schedule.
Do I need to declare my odometer reading during the policy coverage period?
No. Declaration of the odometer reading is required only during policy inception and on each renewal. For your low mileage car insurance plan, it is important to ensure that the odometer reading is accurately declared to avoid any difficulty in times of accident claim.
Will there be any telematics or smart-devices installed into my vehicle to monitor my driving usage?
No. There will not be any telematics or smart-devices installed into your vehicle. All that is required is for you to declare the odometer reading accurately during your policy signup.
How will a claim be assessed during an accident for Low Mileage insurance plan?
Be sure to follow our insurance claims process. After the accident has been reported within 24 hrs, the Accident Reporting Centre (ARC) or DirectAsia appointed accident investigators will provide a picture image of the vehicle’s dashboard showing the odometer reading at that time. This odometer reading taken will be used to validate against the declared odometer reading on the policy if the usage is still within the permitted mileage allowed.