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While most insurance policies have a set monthly premium, several auto insurers offer pay-per-mile insurance plans that charge based on the number of miles driven. These types of policies provide the same coverage as standard insurance but can be a good option for drivers who don’t put many miles on the odometer each year.
If you’re looking for the lowest possible auto insurance rates, it’s a good practice to compare rates from several insurers. We’ve reviewed the car insurance companies and you can reach out for free quotes from top providers in your area below.
In this article:
- How does pay-per-mile insurance work?
- How much does pay-per-mile insurance cost?
- Should you get pay-per-mile insurance?
- Companies that offer pay-per-mile insurance
- Usage-based insurance
- Recommendations for car insurance
How does pay-per-mile insurance work?
Pay-per-mile auto insurance monitors your driving distance either through a mobile app or plug-in device. Premiums are determined based on your total driving distance, with low-distance drivers receiving lower car insurance rates. This type of insurance policy can result in cheaper insurance for those who do not drive frequently.
How much does pay-per-mile insurance cost?
Rates for pay-per-mile insurance are based on some of the standard auto insurance cost factors, such as age, driving history, location and marital status. However, as the name implies, pay-per-mile insurance premiums are largely determined by the total number of miles that you drive each policy period.
Every pay-per-mile insurance program charges a base rate (either monthly or daily) and a per-mile rate. The amount you pay for each mile can vary depending on the above factors, but policies typically cost about six or seven cents per mile.
Should you get pay-per-mile insurance?
Pay-per-mile insurance can be a good idea for those who don’t drive often. If you usually drive fewer than 10,000 miles per year, a pay-per-mile insurance policy might be your best choice for affordable coverage. If you use your vehicle for a daily commute, this type of car insurance policy is probably not going to save you much money.
Drivers that tend to receive high rates for factors such as age and driving history may find a good deal on pay-per-mile coverage. Mileage-based programs often place less weight on these factors. One pay-per-mile insurer, Metromile, has a trial period that can give you an idea of what your pay-per-mile insurance rates could be.
Most mileage-based programs only track your miles driven. Some providers like Metromile will also track information related to your vehicle’s health, such as fuel economy. Safe driving telematics programs, on the other hand, track a wide variety of factors including distracted driving and hard braking.
Companies that offer pay-per-mile insurance
The table below lists several companies that offer pay-per-mile insurance. In each case, programs are not available in all states.
| Pay-per mile insurance program | States available |
| Nationwide SmartMilesⓇ | Arizona, Arkansas, Colorado, Connecticut, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming |
| Allstate MilewiseⓇ | Arizona, Delaware, Florida, Idaho, Illinois, Indiana, Maryland, Massachusetts, New Jersey, Ohio, Oklahoma, Oregon, Pennsylvania, Texas, Virginia, Washington, West Virginia, Wisconsin |
| Liberty Mutual ByMileⓇ | Connecticut, Virginia |
| Metromile | Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, Washington |
| Mile Auto | Arizona, Georgia, Illinois, Oregon |
The following standard types of insurance are available through each program listed above:
Usage-based insurance
Usage-based insurance is similar to pay-per-mile insurance in that it monitors your driving behavior through a mobile app or plug-in telematics device. This type of insurance offers reduced rates based on how you drive, including your total distance driven. Usage-based insurance also measures driving factors such as cornering, braking and time of day that you typically drive.
You can get usage-based coverage from a wider variety of providers than pay-per-mile insurance. Rates are not directly set by your distance driven, and these programs typically have a maximum possible car insurance discount.
Car insurance companies to consider
Even if you’re considering pay-per-mile insurance, we recommend comparing traditional policy quotes so you can be sure you’re getting the best deal for auto insurance. Reach out for free car insurance quotes from providers below.
Geico
Geico offers a wide range of coverage options, superior financial stability rating from AM Best and proven customer service record. Geico also tends to be one of the cheapest insurance options for many drivers, as it has a wide range of discount opportunities.
While Geico does not have a pay-per-mile insurance program, it does have a usage-based discount service. DriveEasy monitors distance driven as well as other driving habits like braking and cornering, providing reduced rates for good drivers.
To learn more, read our full Geico insurance review.
Progressive
Pay-per-mile insurance can be a good option for some high-risk drivers. This is because your total distance driven is generally taken into account more than your driving record. However, if you drive regularly, this type of policy will likely be more expensive than a traditional auto insurance policy.
Progressive offers a number of discounts aimed specifically at teens and older motorists. Based on our cost research, drivers with DUIs and multiple traffic violations tend to see lower rates from Progressive than other insurers.
The provider has a usage-based insurance app called Snapshot®. In some cases, you’ll get an automatic discount just for participating. You can learn more in our Progressive insurance review.
*Data accurate at time of publication.
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