There are several aspects to this but at a high level it boils down to
- To some extent the insurer has fixed costs.
- Underwriters apparently think there is a marginal decrease in risk for each marginal mile driven.
- In the case of comprehensive coverage the car is being covered whether or not it's being driven, insurers are about to get pummeled with flood claims even though many of the affected autos were just sitting in garages and on streets.
A lot goes in to insurance rating and risk projecting. You can't adjust a single variable and expect a proportional change in your premium, 7,000 miles per year just won't be 70% of the cost of 10,000 miles per year, because there are a lot of other things in play as well.
To further address premium adjustments. Consider this:
Your fixed cost policy fee is $25
Your liability coverage is $100
Your comprehensive coverage is $75
Your total premium is $200
Even if your liability coverage did scale with perfect correlation to your mileage (using the same 70% from above, 7,000 miles per year versus 10,000 miles per year) then your premium composition is:
Policy fee: $25
Liability coverage: $70
Comprehensive coverage: $75
Total premium: $170
$200 to $170 is 15%. No change will have a direct linear correlation to your total premium because there are different component pieces of the total premium. Fixed costs may be built in to the amounts for other component pieces of the premium, for example maybe no line of coverage ever has a cost below $X.
Obviously these numbers are all made up
Additionally, and also less considered is the fact that your liability also scales because of a lot of factors that have nothing to do with you. It might be the other cars that are on the road, it might be that more densely populated areas have more fender benders. For example if you live in Beverly Hills you have a much higher likelihood of accidentally bumping a $70-$80-$90-$100k+ car than you do in say, rural Wisconsin. If your zip code is gentrifying and everyone starts buying Mercedes, your liability coverage increases.
You can not adjust one single variable and decide that you are lower risk than all insurers think you are. If you shop this coverage and all insurers are within a nominal margin of pricing for the same coverage levels, there isn't much to argue with; you are simply riskier than you think you are and the variable you are focused on is not as meaningful as you think it is.