You don't drive a lot?  Pay per mile car insurance can save you big money

You don’t drive a lot? Pay per mile car insurance can save you big money

If you are looking for Reduce your car insurance costAnd, if you don’t drive often, you might consider switching to pay-per-mile or “pay-as-you-go” car insurance. Instead of paying a set amount each month for auto insurance coverage, Pay Per Mile Insurance allows you to pay a lower flat rate plus cash for every mile you drive.

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The concept of pay per mile car insurance was there Since at least 1968 Some drivers may help save money. In 2008, Brookings Institution Found That insuring pay-per-mile would save society “$50 billion to $60 billion annually by reducing driving-related damage.”

Pay-per-mile car insurance can not only cost you less money, but it can also give you more control over how much you pay and spend on fuel. There is also the benefit of knowing the exact cost of each mile you drive. According to Robert Lajdziak of JD Power, “Even customers who don’t save money are still more satisfied with the price because there is more transparency and a sense of control over their premiums.”

Find out how pay-per-mile car insurance works Car insurance providers It offers pay-as-you-go coverage, how much money you might save and whether or not pay-per-mile car insurance might be a good option for you. For more information, search for Best Choices for Cheapest Car Insurance.

What is pay per mile car insurance?

Pay-per-mile car insurance charges a monthly fee based on how much you drive. Instead of paying a fixed premium for your car insurance, you’ll pay a variable amount that fluctuates depending on the number of miles you put on your car.

How does pay per mile car insurance work?

You’ll pay your car insurance provider a standard base rate, plus a rate per mile multiplied by the number of miles you drive each month.

To keep track of mileage, most pay-per-mile auto insurance providers require that you plug an electronic device into the vehicle’s On-Board Diagnostic (OBD) port. Also known as remote devices, these devices can also track other driving behaviors such as driving speed, acceleration, and braking distance.

If you don’t want your auto insurance company to track your driving behaviors, some companies let you track your miles via smartphone apps or odometer photos.

Who Sells Pay Per Mile Car Insurance?

Currently, four auto insurance providers offer pay-as-you-go insurance: Allstate, Metromile, Mile Auto, and Nationwide.

Metromile and Mile Auto are both online-only insurance providers and only offer pay-per-mile car insurance. Allstate and Nationwide are the largest traditional insurers that sell many types of insurance, allowing more potential savings for pooling home, life, or other insurance policies.

For military and families, it’s worth noting the “Pay As You Drive” auto insurance program offered by a USAA affiliate. Nobler. Their UBI program will lower your bill when you drive less, but the algorithm for calculating your monthly premium isn’t fully correlated with miles, so it’s not technical pay-per-mile insurance.

Who can get pay per mile car insurance?

Pay-as-you-go car insurance is available in most of the 50 US states, with the exception of Alaska, Hawaii, Louisiana, New York, and North Carolina. Account requirements vary between insurance providers.

The broadest coverage comes from Nationwide SmartMiles, which offers policies for all states except for the five countries listed above. Small online insurance companies only offer pay-per-mile car insurance for eight or nine states.

How much does pay per mile car insurance cost?

Pay-per-mile car insurance rates vary based on a number of factors. Your personal monthly premium will depend on your age, gender, location, type of vehicle you drive, other drivers of the vehicle and your driving history – in particular any recent speeding tickets, accidents at fault or a DUI.

Compare pay-per-mile car insurance providers and plans below to learn more about how they work and some estimated rates for common scenarios.

NB: All insurance quotes provided are only estimates of pay-per-mile car insurance costs. Actual insurance policies final costs may differ significantly from these estimates.

The auto insurance quotes below are based on my personal driving situation – two drivers about 50 years old with clean records living in Berkeley, California, with one car – a 2008 Subaru Outback. My standard bid was $15,000 per person (30,000 $1 per accident) for bodily injury coverage, $5,000 in property damage, $15,000 per person ($30,000 per accident) for injuries from uninsured or uninsured motorists, and comprehensive collision coverage with a $500 deductible each.


Founded in California in 2011. metromil It was one of the first providers of pay-per-mile car insurance. To track your mileage, Metromile uses a device called a Pulse that connects via your OBD port.

Metromile logo


Metromile has a fairly small footprint to date, providing insurance policies in eight states – Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia and Washington.

With Metromile, you are charged for every mile you drive up to 250 per day (150 per day for NJ). Metromile claims that its customers “saved an average of 47% over what they were paying their previous auto insurance company.”

Depending on my location and driving position, the online Metromile system moved me a base rate of $33 a month plus 6 cents per mile. At a driving rate of 500 miles per month, or 6,000 miles per year, I would pay $63 for auto insurance each month, or $756 per year. This is for the fairly standard insurance coverage mentioned above.

On a lower level of coverage, with no collision, comprehensive, or uninsured motorist coverage, Metromile moved me $20 a month base rate and 3 cents per mile. When I drive 500 miles a month, I’ll pay $35 a month or $420 a year.

Metromile was purchased by the insurance company Lemonade In November 2021. It’s not yet clear if or how Metromile will merge with Lemonade home owners, renters, and pet insurance products.

Auto mile

Auto mile — or simply Mile, as the company calls itself — is unique in the pay-per-mile insurance space because it doesn’t get you to install anything that tracks your vehicle usage and driving behavior.

Mile Auto . logo

Auto mile

Instead, Mile uses a smartphone app that allows you to send photos of your car’s odometer. Called MVerity, the app sends you a monthly reminder with a link that unlocks your phone’s camera. Pick up an odometer, upload your photo and MVerity will take care of the rest. It detects your odometer data by confirming the authenticity of your vehicle and image, then compares your image with previous odometer readings.

Mile Auto also has the advantage of having no daily mileage limit. You’ll pay for all your miles, even on long trips. Mile Auto is available in nine states – Arizona, California, Georgia, Illinois, Ohio, Oregon, Pennsylvania, Tennessee and Texas.

Based on a quote for location and driving condition, Mile Auto estimated a base price of $38.03 per month and a per-mile fee of 4.2 cents per mile, for the same standard collision, comprehensive and uninsured driver coverage criteria you used in the Metromile. At a rate of 500 miles a month, that would also cost me about $59 a month or $708 a year.

However, at minimal coverage (using the same minimal personal injury coverage as the Metromile), Mile Auto didn’t give me any savings. She quoted me a base price of $34.68 and a mile-per-mile rate of 4.9 cents. At 500 miles a month, I’m still paying $59 a month, or $708 a year. Mile Auto did not respond to requests for comment.

SmartMiles nationwide

like Metromile, SmartMiles nationwide It works by plugging a small device that tracks your mileage and driving behavior into your vehicle’s OBD port. As with most other programs, SmartMiles sets the maximum daily mileage at 250.

national emblem


SmartMiles is available nationwide in 45 states and Washington, DC – every state except Alaska, Hawaii, Louisiana, New York and North Carolina. (A Nationwide representative assured me that SmartMiles is available in Oklahoma, although their website says the state is excluded.)

This program does not provide an easy online pricing system – you can get a quote for traditional car insurance, but nothing explicitly gives a base rate per month or cost per mile.

After a few minutes with a Nationwide representative, I was able to get a quote for coverage similar to the common insurance scenario described above for Metromile and Mile Auto.

Nationwide estimated I would pay about $65 a month with my estimate of 500 miles. The mileage rate would be 5 cents, the representative said, making the monthly base rate $40. Remember, this is $15,000/$30,000 for basic bodily injury liability coverage, $500 deductible for collision and comprehensive coverage, $5,000 for property damage and $15,000/$30,000 for uninsured driver coverage.

Allstate Milewise

Miloise One is Allstate’s telecommunications software – the other is Drivewise, a traditional insurance policy that offers discounts on safe driving for those who want to install a monitor on their vehicle’s OBD ports.

Allstate . logo


Allstate Milewise is available in 21 states – Arizona, Delaware, Florida, Idaho, Illinois, Indiana, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, Virginia, Washington, West Virginia and Wisconsin – So does Washington, DC.

Drivers in most states have a maximum limit of 250 miles per day, although the limit is 150 miles in Illinois, Indiana, New Jersey, Ohio and Oregon.

Allstate Milewise is not available in California, so I was unable to get an actual quote for my driver’s parking lot. An Allstate representative told me that, “With Milewise, drivers who travel with lower mileage can save 50% on traditional insurance policies.”

Since prices vary so much based on individual drivers and the amount of insurance coverage offered, I recommend taking the time to complete online pricing tools or contact the companies for pay-per-mile insurance quotes based on your driving condition.

For additional reading, check out Best cheap car insurance companies And the Seven more ways to save money on car insurance.

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