Drivers who drive less than 7,000 miles a year are paying an average of £180 more for car insurance than those who drive over that amount, according to By Miles.
It comes as the motor insurance group analysed over 1.7 million quotes from comparison site MoneySuperMarket.
The average UK motorist drives 7,090 miles a year, but 19.3 million insurance customers are being overcharged due to a “low mileage penalty”, the group said.
While 5,000 to 6,000 miles a year is the most popular mileage bracket declared by drivers, according to By Miles, these drivers are being charged £215 more than those that drive between 11,000 to 12,000 miles a year.
Nonetheless, motorists who said they drive 11,000 to 12,000 miles a year are around one and a half times more likely to declare making a claim than the average lower mileage driver.
James Blackham, CEO and co-founder of By Miles, said: “People are still reeling from the insurance industry’s loyalty penalty scandal and now we have another issue – the low mileage penalty.
“Based on the latest Government car ownership data, that means nearly 19.3 million UK motorists could be overcharged due to the low mileage penalty. Spending less time on the road makes you far less likely to have a claim, but this isn’t being taken into account in quotes from traditional car insurers.”
He added: “At a time when drivers are completing fewer miles during the lockdown, the unfairness of the traditional car insurance pricing structure is clear to see. If you drive less, you should pay less.
“The technology is there, the data proves it. Let’s just be honest – it’s time lower mileage drivers got a better deal. It’s only fair.”