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What Is Pay-Per-Mile Car Insurance?
Pay-per-mile is a type of car policy policy good suited for gloomy mileage drivers. rather of charging a flat monthly rate based entirely on factors like driving history, long time and localization, pay-per-mile policies besides factor in how much you drive. These policies typically add a cost-per-mile to your base insurance rate, charging you a few cents for every nautical mile you drive. MetroMile specializes in pay-per-mile insurance policies. early democratic insurers — like Allstate, Liberty Mutual and Nationwide — offer pay-per-mile programs in choice states. Note that pay-per-mile programs aren ’ t the same as behavior-based insurance, which tracks not just how much you drive but how safely you drive.
How Does Pay-Per-Mile Car Insurance Work? Should You Get It?
According to MoneyGeek ’ s research, pay-per-mile car indemnity is only the cheapest car insurance policy for people who drive infrequently. here ’ s how pay-per-mile indemnity plans typically function :
- An insurer calculates your base rate and rate per mile.
- Base rates and per-mile rates depend on your age, location, driving history and insurer.
- Say an insurer may offer you a base rate of $60 per month and 10 cents per mile driven. If you drive 1,200 miles per month (about 40 miles per day), you’ll pay $120 per month for the miles you drive and $60 for your base rate, or $180 per month.
Should You Get Pay-Per-Mile Car Insurance?
There ’ s no way to know with certainty that pay-per-mile cable car indemnity will save you money until you get a quotation. however, rates from the leading pay-per-mile provider — MetroMile — suggest that a typical driver would have to drive less than 26 miles per workweek to save money with a pay-per-mile plan. To help give you an idea of how much you might pay with pay-per-mile indemnity, MoneyGeek obtained quotes from MetroMile in Illinois for a typical car policy policy. We found that MetroMile charged our sample driver a base rate of $ 57 per month and 8 cents per nautical mile. On average, MetroMile charges drivers who drive less than 26 miles per week $ 65 a calendar month for insurance. The same coverage with GEICO costs about $ 66, while AAA charges $ 139.
Pay-Per-Mile Car Insurance Rates
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- insurance company monthly Rate
- 1. Metromile ( 26 miles per week ) $ 65
- 2. GEICO $ 66
- 3. mercury $ 72
- 4. Country Financial $ 72
- 5. USAA $ 73
- 6. state farm $ 79
- 7. Metromile ( 65 miles per workweek ) $ 80
- 8. erie $ 84
- 9. progressive $ 85
- 10. American Family $ 90
- 11. Travelers $ 94
- 12. Allstate $ 98
- 13. Metromile ( 130 miles per week ) $ 103
- 14. Farmers $ 111
- 15. MetLife $ 116
- 16. nationally $ 123
- 17. abdominal aortic aneurysm $ 139
- 18. Metromile ( 260 miles per week ) $ 149
If you ’ re matter to in pay-per-mile indemnity, note that you may have trouble finding a policy. MetroMile is available in precisely eight states. only three of the biggest insurers in the state offer pay-per-mile indemnity, but they besides have limited handiness. Certain states, like California, don ’ t even allow pay-per-mile car indemnity policies, though some behavior-based plans are available.
The Best Pay-Per-Mile Car Insurance Options
MoneyGeek identified pay-per-mile cable car policy policies offered by four policy companies across multiple states : MetroMile, Nationwide, Liberty Mutual and Allstate. Of these four, we chose Nationwide ’ second SmartMiles program as our crown pick for good pay-per-mile cable car indemnity. This plan is low-cost and widely available, and it gives customers opportunities to earn extra discounts for safe drive. Pay-per-mile car insurance could save you money, but be sure besides to evaluate each supplier ’ s fiscal stability, service quality, claims summons and customer gratification ratings before choosing a policy .
Nationwide Nationwide is our crown pick for pay-per-mile car policy for respective reasons. Drivers can purchase the design in 40 states, making it the most widely available pay-per-mile policy. It besides gives drivers even more opportunities to save, with up to a 10 % discount for dependable drive. Plus, if you don ’ t drive much but occasionally go on long road trips, Nationwide entirely charges you for the first 250 miles driven on any given day. many pay-per-mile insurance policies have limited handiness. Below are some of the most democratic policies available to drivers, along with their particular features and the states where they ’ rhenium available :
Pay-Per-Mile Insurance Programs
| policy party | Pay-Per-Mile Program description | deduction | States available |
|---|---|---|---|
| MetroMile | Charges a monthly pace and a pace per mile driven . | none
Read more: The 7 Best Car Insurance Companies (2022) |
Eight states : AZ, CA, IL, NJ, OR, PA, VA, WA |
| countrywide | SmartMile plan charges a foundation monthly rate and a per-mile rate. Provides an exception for road trips — only the first 250 miles drive in a day count toward your premium . | up to 10 % for dependable force . | 40 states : AR, AZ, CO, CT, DC, FL, GA, IA, ID, IL, IN, KS, KY, MD, ME, MI, MN, MO, MS, MT, ND, NE, NH, NM, NV, OH, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY |
| Allstate | Allstate ’ mho Milewise program charges drivers a daily rate plus a rate per sea mile drive . | none | 16 states and Washington D.C. : AZ, DE, FL, ID, IL, IN, MA, MD, NJ, OH, OR, PA, TX, VA, WA, WV |
| Liberty Mutual | ByMile program tracks the count of miles you drive. You ’ re billed based on miles driven in the anterior calendar month plus a base rate. Never charges drivers for more than 150 miles per day . | none | available in blue-ribbon states . |
Pay-Per-Mile Car Insurance vs. Behavior-Based Car Insurance
While pay-per-mile car indemnity and behavior-based policy share some similarities, there are some winder differences between the two. Pay-per-mile insurance charges you based on miles drive, while behavior-based plans reduce or increase premiums based on your driving performance. Some of the drive behaviors measured for behavior-based policies include :
- Braking or accelerating quickly
- Using your phone
- Cornering
- Driving on weekends
- Driving at night
- Driving during inclement weather
- Driving speed
- Driving smoothness
Behavior-based plans lower your insurance premiums if you practice condom driving behaviors — like driving smoothly — and may increase your rates if you engage in insecure drive behaviors.
The Best Behavior-Based Car Insurance Options
Most major policy companies offer behavior-based car insurance programs, although handiness can be limited depending on where you live. Root is the most democratic car indemnity caller whose pricing is based entirely on driving behavior.
Behavior-Based Insurance Programs
| policy company | Behavior-Based Program description | rebate | States available |
|---|---|---|---|
| beginning | Behavior-based indemnity that measures braking, travel rapidly of turns, driving times and road consistency. This company merely insures safe drivers . | Varies | 31 states : AZ, AR, CA, CO, CT, DE, GA, IL, IN, IA, KY, LA, MD, MS, MO, MT, NE, NV, NM, ND, OH, OK, OR, PA, SC, TN, TX, UT, VA, WA, WV |
| progressive | company ’ second behavior-based insurance — Snapshot — measures how safely you drive and when you drive . | $ 145, on median | 49 states : AK, AL, AR, AZ, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY |
| GEICO | DriveEasy plan penalizes drivers for distracted drive, hard brake and cornering while rewarding policyholders for legato tug and driving on easy roads. The policy besides takes time of day, distance driven, and weather into report . | Varies | 20 states : AZ, CO, CT, FL, IL, IN, KY, LA, MD, NC, NJ, NM, OH, OK, OR, PA, TN, TX, VA, WI |
| state farm | Drive Safe and Save policy measures flying acceleration, hard brake, fast corner, speed, distracted drive, miles drive, night drive, and gloomy visibility drive. This program does not penalize drivers for insecure drive behaviors . | astir to 50 % | 47 states : AK, AL, AR, AZ, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY |
| Allstate | Behavior-based policy — Drivewise — measures speed, brake, and meter of day to determine discounts . | 40 % or more | 50 states and Washington D.C. : AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY |
| Liberty Mutual | right Track awards discounts based on miles drive, frequency of night drive, braking and acceleration. The ship’s company doesn ’ thyroxine punish drivers for insecure driving behaviors . | 5 % to 30 %, drivers besides receive a rebate for signing up | 42 states : AL, AR, AZ, CO, CT, DC, DE, FL, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, TN, TX, UT, VA, VT, WI, WV |
| Farmers | signal behavior-based policy measures focused force, unvoiced brakes, excessive speed, clock of day, and entire mileage to determine discounts . | 5 % rebate for signing up and up to 15 % for safe drive | 47 states : AK, AL, AR, AZ, CO, CT, DC, DE, FL, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, OH, OK, OR, PA, RI, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY |
| abdominal aortic aneurysm | SMARTtrek program tracks driving time of day, smoothness, call habits, travel rapidly and mileage to determine discounts . | up to 10 % | choice states |
| Esurance | Drivers who enroll in the company ’ s behavior-based program, DriveSense, get a deduction for signing up. Awards another deduction based on driving demeanor after the first 50 miles and measures speed, hard brake and time of day . | Varies | 35 states : AL, AR, AZ, CO, CT, GA, IA, ID, IL, KS, KY, LA, MD, ME, MI, MN, MO, ND, NE, NJ, NM, NV, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, WA, WV |
| countrywide | SmartRide records miles drive, hard brake and acceleration, dead time, and night driving. Doesn ’ thymine punish policyholders for insecure drive . | up to 10 % when you sign astir and up to 40 % for condom repel | 50 states : AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY |
| USAA | USAA ’ south SafePilot app gathers data about your location, time of day while driving and whether you ‘re the passenger or driver. It besides measures the frequency of call treatment, hand-held calling, hands-free calling or harsh brake. full drivers can receive a rebate . | up to 10 % for signing up and up to 30 % for safe drive when you renew your policy | 16 states : AK, AR, AZ, IA, ID, KY, MD, MO, MT, NM, OH, OR, SD, TN, TX, VA |
| Travelers | 90-day program — IntelliDrive — monitors the prison term of day you drive, adenine well as your speed, acceleration, brake, and distracted drive frequency. Rates increase if you have insecure drive habits and decrease if you don ’ thymine . | 3 % to 40 % off | 36 states : AL, AR, AZ, CO, CT, DC, FL, GA, IA, ID, IL, IN, KS, KY, MD, ME, MN, MO, MS, MT, NE, NJ, NM, NV, OH, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI |
Frequently Asked Questions About Pay-Per-Mile Car Insurance
Pay-per-mile car policy is a relatively new product, so drivers often wonder how it works and whether or not it ’ south worth it. MoneyGeek answered some of the most common questions about pay-per-mile indemnity to help you learn more .
Pay-per-mile indemnity may be worth it if you drive infrequently. sample rates provided by MetroMile suggest that people who drive less than 26 miles per workweek could save money with a pay-per-mile policy .
policy companies calculate costs for pay-per-mile policies using two factors : a infrastructure rate and a rate per mile driven. Like they would for a criterion insurance policy, your placement, old age, and past drive history influence these rates .
Nationwide is our top pluck for a pay-per-mile indemnity policy. The company ‘s SmartMiles course of study provides coverage to 40 states around the nation, making it the most widely available pay-per-mile plan MoneyGeek evaluated. SmartMiles besides tracks driving behaviors, awarding extra savings to policyholders who drive safely.
Methodology
MoneyGeek collected data for traditional indemnity companies based on our established methodology. To collect rates from MetroMile, Moneygeek used a sample driver populate in Illinois with identical policy coverage. Data on state handiness of pay-per-mile and behavior-based car indemnity policies were drawn from insurance company websites.
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About the generator
Margaret Wack is a freelancer writer who covers policy, saving, investing, bank, and more. Margaret earned a bachelor ‘s degree in classics, comparative literature, and poetry from Smith College and a master ‘s degree from St. John ‘s College.