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Pay-per-mile Car Insurance

How Does Billing Work

Is pay-per-mile auto insurance a good idea?

Youre charged for your first months base rate when you purchase a policy, plus any required prepayment. At the end of the first month, youll be charged for the next months base rate as well as any miles driven during the previous month. That way, youll only receive one bill each month. We also set you up for automatic billing when you first sign up, so theres no need to worry about missed payments. If you ever need to update your billing information, you can login to your online account.

How Much Does Pay

Pay-per-mile insurance often costs anywhere from three to six cents per mile on top of your base rate. For instance, if your base rate is $60 a month, your per-mile rate is 5 cents, and you covered a distance of 400 miles, then you would pay $89 that month.

This is how you can calculate your per-per-mile insurance cost: base rate + .For example- $60 + = $89

The cost of pay-per-mile insurance varies depending on how much you drive and factors such as your driving history, location, and the make and model of your car. Your bill will change from month to month based on actual driving habits that month.

Online Mileage And Premium Tracking

Insurers may also enable you to track your mileage, premium, and more online or through their app. For example, you could see your month-to-date mileage and premium, as well as how they compare to previous months. This online tracking option helps you see if youre over budget, so you can scale back your driving for the rest of the month.

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What Are The Benefits

Switching to pay-per-mile insurance would save money for someone who doesnt drive much. But what exactly does not driving much entail?

To save money on pay-per-mile car insurance, youd have to drive less than that. When calculating how much you travel, dont forget to include the time it takes you to get there, especially if you spend time stuck in traffic.

It has nothing to do with the amount of time you spend in your car, and it has to do with the distance youre driving. For the most part, people arent driving at all.

Some examples of car owners that dont put a lot of kilometers on their cars are:

  • Who drive solely on weekends and take public transportation to work
  • People who work from home
  • Car owners who have a car lease with strict mileage limits
  • On-campus students are college students who reside on campus.
  • Retirees who dont drive too often

Drivers who wish to save money based on actual mileage driven rather than driving behavior, such as usage-based auto insurance, may find a pay-per-mile insurance plan interesting.

Companies That Offer Pay Per Mile Insurance

Pay

According to ValuePenguin, there are several companies that provide pay per mile auto insurance policies. These include:

These are just three of the many insurance companies that offer pay per mile insurance. Now that you know the benefits and disadvantages of a pay per mile policy, you can decide if it’s right for you.

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How Do I Make Payments

Set up your Milewise account with an initial down payment, then pay as you go. Trip costs are deducted from your Milewise account after each trip is completed and processed usually within 48 hours. When your account reaches the minimum balance, it will automatically replenish via the credit card on file.

You can also make a payment on your account at any time by accessing the Payment Information section on the Milewise website via My Account .

  • Login to the My Account website
  • Select milewise.allstate.com to access Milewise website
  • Next, select “View Payment Information” to display the payment history

You can also make a one-time payment on the Allstate mobile app.

How Do I Confirm My Milewise Device Is Working And Recording Trips

A red light on the device will flash briefly once it is installed. You will also receive a notification through your app once the device is connected.

It’s important to check your app and/or website to ensure trips are being recorded. You will be notified in the app, website, or through email if there is an issue with the device or if trips are not recording. Trips should appear on the dashboard within 48 hours. Sometimes trips will not appear right away because the vehicle is in an area where the device does not have adequate cellular service. Once the vehicle is in an area where the device can connect, all data from the device will be transferred and recorded in the Milewise dashboard.

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What Are The Factors That Determine My Base And Per

Your base rate will always be lower than a personal auto policy. Average rates have been reported to be as low as $24 and as high as $30 monthly. Insurers use a wide range of factors to determine your base rate and per mile rate for quotes depending on the driver and their car.

Here√Ęs what matters when it comes to your per-mile insurance cost:

Definition And Examples Of Pay

MetroMile Pay Per Mile Car Insurance Review

Pay-per-mile insurance is a type of car insurance policy with a premium that varies based on how many miles you drive. This type of insurance also typically charges a base rate in addition to a per-mile rate.

  • Alternate name: Mileage-based insurance

For example, say your daily base rate is $1.50 and your per-mile rate is $0.06. If you drive 10 miles in one day, youd pay $0.60 plus $1.50, for a total of $2.10. After a month of similar driving, your premium would be about $63.

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How Does My Car Insurer Know How Many Miles I Drive

When youre shopping around for car insurance quotes, car insurance providers will generally request an estimate of your total mileage. They may later ask you to verify it with a regular odometer reading.

If youd like to figure out your cars annual mileage, start by taking a look at the mileage currently on your cars odometer. If you know how old your car is, divide that mileage by the age of the car. If you dont know what year your car was manufactured, you can find this information on the drivers door jamb of your car.

With a pay-per-mile program, your insurer will need an accurate reading of how much youre driving each month. As a result, mileage is usually determined using a simple mobile app or a plug-in telematics device in the car.

Can You Save With Pay

The cost of pay-per-mile insurance varies by insurer and how much you drive. Your own driving history and personal characteristics are also factored into the cost, like with a traditional auto insurance policy.

Dont automatically buy into the savings the company says you may find in order to know how much you can save over your current carrier, youll need to do the math after you get a quote.

To estimate how much youll pay for pay-per-mile insurance, use the following formula: Monthly base rate + .

For instance, lets say your pay-per-mile quote shows a monthly base rate of $34 and a per-mile rate of 5 cents. You generally drive 800 miles a month.

You can calculate your monthly rate as: $34 + = = $74.

Again, this is only an estimate, and your actual cost per month will vary depending on how many miles you drive.

Not sure how many miles you drive? Keep track of your mileage before trying a pay-per-mile plan. This will allow you to better estimate what your pay-per-mile insurance rate will be.

If you don’t want to manually track your mileage, one option is Metromiles Ride Along program. Metromile will track your driving for about two weeks through its app and give you an estimated bill based on your driving. You are not obligated to switch to Metromile if you use the Ride Along feature.

Also Check: Cheap Full Coverage Car Insurance

Is Telematics Car Insurance The Same As Pay

Telematics car insurance, also called usage-based car insurance, tracks driving habits using an in-car tracking device. The in-car tracking devices monitor your driving habits and tendencies, which the company uses to calculate a discount. You can easily access real-time data relevant to your rate with an easy mobile app on the go. It also alerts if there’s something wrong with the vehicle.

Pay-per-mile and telematics use the same technology but base rates on different things. Pay-per-mile is only concerned about the distance you drive while telematics may consider your driving habits to determine what risk you present to the insurance company.

Can I Customize A Pay

Pay per mile car insurance

Yes, you can customize your policy! Like traditional car insurance programs, pay-per-mile policies include the same standard insurance coverage options and add-onslike liability coverage, and comprehensive and collision coverages .

You can customize the coverages on your policy to best fit your needs, just keep in mind that this will affect the monthly base rate that you pay as part of your premium.

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How Does My Car Insurer Know My Annual Mileage

When youre shopping around for car insurance quotes, some car insurance providers may ask for an estimate of your total mileage. They may later ask you to verify it with an annual odometer reading.

When you buy a Lemonade Car policy, your estimated annual mileage is a major factor that helps us fairly price your policy from the get-go. We may ask you how much you expect to drive your car over the next year. Its fine to estimate based on your past mileage if you dont foresee any big changes with the way you use your car.

Once you enable location services on the Lemonade app, we use telematics to help fairly price your coverage based on the number of miles you actually drive, along with other factors like your driving habits and driving history. We also use your mileage to calculate how many trees we should plant to help clean up your carbon emissions from driving.

Which Providers Offer Pay

Pay-per-mile car insurance is a relatively new concept, although it is gaining in popularity. It is possible that the pandemic contributed to the growth of usage-based insurance policies, as more people have generally been staying home and driving fewer miles. However, several other circumstances such as having a work-from-home job or living in a city and relying more on public transit could also make pay-per-mile insurance a convenient choice.

Below are some of the pay-per-mile options from a few popular auto insurance companies. All the base rate and per-mile rate examples, along with the estimated savings, come directly from the insurance providers websites and are subject to change.

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How We Make Money

The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.

How is this page expert verified?

At Bankrate, we take the accuracy of our content seriously.

Expert verified means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced.

Their reviews hold us accountable for publishing high-quality and trustworthy content.

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At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to stricteditorial integrity,this post may contain references to products from our partners. Here’s an explanation of how we make money.Our content is backed byCoverage.com, LLC, a licensed entity . For more information, please see ourInsurance Disclosure

What Are The Downsides Of Pay Per Mile Car Insurance

Eric Rosenberg: Is Pay Per Mile Auto Insurance Right For You?

If your monthly mileage is somewhere closer to that 1,000 miles/month figure , there are good reasons to steer clear of PPM. Potential downsides include:

  • After calculating your base rate and your typical mileage, you may not actually save any money.
  • Not every car insurance carrier offers this option.
  • Switching to a company that DOES offer PPM might block you from important coverages or better discounts you are already getting .
  • Switching to an agent that represents this coverage probably means switching to a direct writer or a captive agent, which in turn means losing access to an independent agent
  • Switching to a direct or captive agent also limits your ability to shop multiple carriers. So, if your premium increases at renewal, you have nowhere else to go. For more on this important point, check out: Do I Need an Insurance Agent?

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What Are Some Additional Ways I Could Save On My Pay

Outside of your insurance, there are several methods that you can use to reduce your per-mile insurance rates. It goes without saying that being a safe driver will give you discounts on your premiums. Being a smart driver with good driving habits lowers per mile premiums.

Become a smart and efficient driver with good driving habits by:

Is Root Car Insurance Good

Root has a very simple approach when it comes to car insurance. Their “download, drive and save” mantra is accurate, to say the least. How much you pay depends on you, your driving habits and how much you drive. Once you have the app, use it for a few weeks and then you’ll get a quote from Root. This car insurance is as good as you are.

Also Check: Blank Fillable Fake Car Insurance Card Template

Its All About You We Want To Help You Make The Right Coverage Choices

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships dont influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

How To Get Pay

How Does Pay Per Mile Car Insurance Work?

Allstate, Metromile, Mile Auto and Nationwide are the handful of companies that offer pay-per-mile insurance. With all four, you can get rate quotes online and get a better idea of how much youd pay for coverage based on the miles you drive.

Pay-per-mile plans may not all be available nationwide.

Insurance company

Nationwide SmartMiles

Arkansas, Arizona, Colorado, Connecticut, District of Columbia, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Maryland, Maine, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Mexico, Nevada, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Vermont, Washington, Wisconsin, West Virginia, Wyoming

Before switching to a pay-per-mile insurance policy, get quotes from companies that offer a program in your state. Then check your current policy to see if you can get the same level of coverage with a pay-per-mile program at a lower cost.

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Best Pay Per Mile Car Insurance: Nationwides Smartmiles

If youre thinking about switching your policy to pay-per-use auto insurance, consider Nationwides Smartmiles program. Unlike competitors, Nationwide has a road-trip exception feature that lets you avoid more expensive coverage for the first 250 miles of a long trip.

Nationwide also offers an additional special discount to drivers who sign up for Smartmiles. Policyholders also get a 10% discount when they renew if they were accident-free during the last policy period.

Nationwide is also the best pay-per-mile car insurance company in terms of availability, since its available in all but 10 states. But if you live in any of the following states, you wont be able to opt in to Smartmiles:

What Impacts Your Car Insurance Premiums In Richmond Hill

  • Growing population: Richmond Hill was the fastest-growing Canadian municipality throughout the 1900s, beating out even Brampton. Cities with higher population density tend to pay higher rates for car insurance.
  • Difficult winter driving conditions: Driving in Richmond Hill in the winter can actually be trickier than driving in Toronto, as Richmond Hill gets more snow. Areas with a higher risk of weather-induced collisions are likely to pay more for car insurance.

Read Also: No Down Payment Commercial Truck Insurance

What Is Full Coverage Car Insurance In California

First of all, California full coverage car insurance doesnt existtechnically. Theres no one single policy that will cover you in every situation you might face as a California driver.

You may still hear the term, though, and thats because some people use full coverage to mean a policy that includes liability coverage to protect other drivers as well as comprehensive and collision coverages for your own vehicle.

In any case, Metromile makes it easy to choose the coverages that are right for your situation.

What All Does A Pay

5 Reasons Why I Absolutely Hate Pay Per Mile Car Insurance

You obtain the same coverage kinds with pay-per-mile insurance as you would with regular auto insurance. Liability coverage, collision and comprehensive coverage, uninsured motorist coverage, and roadside assistance are all included.

However, because your rate is based in part on the number of miles you travel, you have greater control over it. Discounts may be available as well.

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