Pay Per Mile Car Insurance - Metromile (2024)

FAQs

Would you recommend pay per mile insurance why or why not? ›

Is pay-per-mile car insurance worth it? It depends on how often you drive. If you consistently log low mileage, pay-per-mile insurance may be cheaper than a traditional auto policy. But if you're considering it only because you know you'll be temporarily driving less, a traditional policy is still the best choice.

Metromile Rates and Discounts

The company's premiums include a base rate and a per-mile rate. As an example, a driver could have a base rate of $29 per month and a per-mile rate of $0.06. If they drove 400 miles that month, they would pay $53 total. If they drove only 200 miles that month, they'd pay $41.

How do you measure miles? We send you a device that plugs into your car's on-board diagnostic (OBD-II) port. It securely transmits data through a cell modem to update your account with trip information. No smartphone or Bluetooth pairing is needed.

What if I take a long trip? No problem - we cap the number of miles you pay each day for each vehicle. In most states, the cap is 250 miles (150 in OR, IL, IN, and OH).

Geico customers pay an average of $655 per year or $55 per month for basic liability coverage. Our research found Metromile to be more affordable than Geico on average.

Metromile was founded in 2011 and is one of the leading pay-per-mile car insurance companies in the U.S. Here are a few other key things to know about Metromile Insurance: 2.7 / 5 rating from WalletHub editors. 4.4 / 5 average rating among users. Read reviews.

Lemonade announced on July 28 that it had closed on its purchase of Metromile, noting that “In return for under $145 million in stock, Lemonade receives over $155 million in cash, over $110 million in car premiums, an insurance entity with 49 state licenses, and precision data from 500 million car trips.”

If you're shopping for car insurance, you may have come across pay-per-mile car insurance, a type of coverage that lets you pay a daily base rate plus a per-mile rate as you drive. While it's a good choice for some drivers — notably those who work remotely and retirees — it's not a good fit for every driver.

Using a device plugged into your car's diagnostic port, Metromile's app tracks your driving behavior including mileage, average speed, cornering or braking and the time of day you drive.

Generally speaking, insurers will ask you for an estimate of your total mileage, but they might also take an annual odometer reading for verification purposes as well. If they choose to use databases or repair shops' information, they could have an accurate odometer reading at any point in time.

How many miles should I say I drive for insurance? ›

To avail yourself of the low-mileage discounts you should typically drive under 7,000 or 5,000 miles annually. Your car insurance rates will be higher if you drive more than 20 miles each way to work. Insure.com's data studies show many drivers get low mileage discount of 5% or under on average nationally.

A grace period lets us know you will be away from your car or won't be driving for a long time. During your grace period, you won't be charged fees if we aren't able to receive a signal from your car's Pulse device, for example. Help us improve our Support Center.

It's a great choice for low-mileage drivers, so you could benefit from Allstate Milewise if you're a stay-at-home parent, someone who works from home, a retiree or a commuter who drives less than the average person.

MileWise: A pay-per-mile car insurance program, suitable for low-mileage drivers to potentially save on insurance costs.

Yes, Allstate uses telematics through Drivewise, its usage-based program, and Milewise, its mileage-based program.

You can expect average per-mile rates of between 6 and 8 cents. Pay-per-mile insurance is an excellent option for low-mileage or infrequent drivers, though some drivers may pay less with traditional car insurance.

In general, you'll see the most savings if you drive less than 5,000 miles annually. According to Insure.com, someone who drives 10,000 miles annually will pay 4% less than someone who drives 12,000 miles. Driving 7,500 miles annually could reduce your premiums 10% compared with driving 10,000 miles.

If you drive a lot, insurance companies will charge you higher premiums because they're taking on more risk. Generally, anything over the U.S. average annual mileage (roughly 14,000 miles) is considered high and will result in a rate hike.