Pay-Per-Mile Car Insurance
- Best pay-per-mile insurance company: Nationwide SmartMiles
- Pay-per-mile insurance charges you based on how far you drive, making it great for low-mileage drivers.
- Students, public transit users, and remote workers often save money with pay-per-mile auto insurance.
From low mileage to long commutes, get coverage that fits your life and wallet when you compare insurance with The Zebra. Enter your ZIP code to see rates in your area.
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What is pay-by-the-mile car insurance?
Pay-per-mile car insurance is straightforward: you pay for the mileage you drive.
A pay-per-mile policy can save you money, if you don't drive very often — less than 10,000 miles a year (the average American drives over 14,000 miles per year). These policies reward low-mileage drivers because the less you're on the road, the less likely you'll be in an accident.
Not all insurance providers offer pay-per-mile plans, but a mix of new startups and established insurance companies are providing this option as an alternative to traditional quote models. Let’s explore who pay-per-mile car insurance is best for, how it works, and the best companies offering it.
Who is pay-per-mile insurance best for?
Pay-per-mile insurance is best for people who don't need to drive very far or very often — like college students, commuters who walk or use public transit, and remote workers. It may also be a good option for senior drivers looking to save money — on average, drivers over age 65 drive 7,646 miles per year.[2]
However, if you have a long commute, take regular road trips, want more coverage options and perks, or are uncomfortable with your driving behavior being tracked, you are likely better off going with a traditional insurance policy.
Mileage-based insurance pros and cons
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Savings for low-mileage drivers: Those who drive under 10,000 miles per year can save hundreds or even thousands each year.
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Transparent pricing: You only pay for a small base premium and the miles you drive.
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No lack of use penalty: If you choose not to drive for a month, all you pay is the minimum base rate.
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Automatic diagnostics: Plug-in devices can save you a trip to the mechanic by sending diagnostics to your phone.
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High cost ceiling: High-mileage drivers could end up paying more than they would with a standard policy.
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Unpredictable: Costs can fluctuate month to month based on driving habits.
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Privacy concerns: Most pay-per-mile plans require some level of driving behavior or location tracking.
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Limited availability: Mileage-based insurers and plans are not available in all states.
"If it works for your driving situation, pay-per-mile can be way cheaper and more fair. However, a potential downside is the extra work of having to keep track of your mileage — some companies may even cancel your policy if you fail to send updated pictures of your odometer."
Cassie Greenwood — Licensed insurance advisor at The Zebra
Wondering if pay-per-mile is right for you? Compare quotes to see how much you can save!
How does car insurance-by-mileage work?
Most pay-per-mile car insurance policies use an in-car device or phone app to track the number of miles you drive per month to determine your rate.
How much you drive isn't the only factor that impacts pay-per-mile policy rates. Your premium is made up of a base rate plus a per-mile fee. Your insurer determines your base rate using standard rating factors such as your driving history, age, location, vehicle type, and credit score (outside of CA, HI, MI, and MA).
While your annual mileage is a rating factor for determining your rate for a traditional auto insurance policy, it’s not a major contributor to your overall premium. A pay-per-mile policy essentially flips how mileage and non-driving factors are weighted.
How to calculate the cost of pay-per-mile insurance
To decide if a pay-per-mile insurance plan is right for you, you need to determine how much coverage will cost. Luckily, you can get an estimate by doing some quick math:
Monthly base rate + (per-mile rate x approximate # of miles per month) = pay-per-mile insurance monthly premium
Below we've put together a calculator that can help you determine what you could expect to pay each month for a mileage based insurance plan:
Pay-Per-Mile Cost Estimator
Remember, your per-mile rate and base rate are determined by standard insurance rating factors. If you have at-fault accidents on your record, live in an area with higher than average rates, or are a young driver, assume that your monthly costs will sit on the higher end of the range provided by the calculator.
Which auto insurance companies are best for pay-per-mile coverage?
Pay-per-mile auto insurance is growing in popularity, with more major insurers offering by-the-mile rates. While we consider Nationwide SmartMiles the best pay-per-mile option for most, the best insurer for you will depend upon a variety of factors.
See below how each mileage-based car insurance program works as well as which ones we recommend based on your location, driving profile, and priorities. We've also included some companies with similar programs so you can easily compare your options.
Best overall — Nationwide SmartMiles
- Mileage tracking method: With SmartMiles you have two options: a small plug-in device (compatible with most vehicles produced after 1996) or an in-car system (available in some 2018+ Ford and Lincoln models).
- Availability: All states excluding AK, HI, LA, NC, NY, and OK.
- Coverages offered: All common coverage options.
- Rate: A monthly rate is composed of a base rate and a variable rate (cost per mile), which fluctuates depending on your monthly mileage.
- Features: SmartMiles offers a safe driving discount (up to 10%), road trip exception (only the first 250 miles count on a single day), and a convenient mobile app.
Best for those seeking pure pay-per-mile coverage — Metromile
- Mileage tracking method: Metromile uses a "Metromile Pulse" wireless device that plugs into your vehicle's OBD-II port.
- Availability: AZ, CA, IL, NJ, OR, PA, VA, WA
- Coverages offered: All common coverage options.
- Rate: Metromile charges a monthly fee based on your driving profile and then an additional per-mile fee. Metromile advertises monthly fees starting at $29/month and per-mile fees starting at $.06/mile. If your mileage fluctuates month to month, your bill may also. Our data shows that the average cost of a 6-month full coverage policy from Metromile is $1,037.[1]
- Features: Their convenient mobile app offers vehicle locating, street sweeping alerts, a check engine light decoder, and a trip tracker that can help track fuel cost and mpg.
Best for drivers valuing a consistent app-to-site experience — Allstate Milewise
- Mileage tracking method: A small device that plugs into your vehicle's OBD-II port.
- Availability: AZ, DE, FL, ID, IL, IN, MD, MA, MN, MO, NJ, OH, OK, OR, PA, SC, TX, VA, WA, WV, and WI.
- Coverages offered: All common coverage options.
- Rate: A daily base rate and a per-mile rate.
- Features: Use their app to track your mileage, review your trips, see your safe driving trends, view vehicle diagnostics, get car maintenance reminders, find a mechanic, and access Allstate Car Health.
Best for tech-savvy drivers — Root
- Mileage tracking method: More akin to a standard telematics company, Root uses your smartphone's accelerometer, gyroscope, GPS, clock, and activity logs to monitor your driving after you download their app.
- Availability: Root is available in all states except AK, HI, ID, ME, MA, MI, NH, NY, NC, RI, SD, VT, WY, and Washington, D.C.
- Coverages offered: All standard coverage options.
- Rate: A variable rate based on how, where, how much and when you're driving. Our data shows that the average cost of a 6-month full coverage policy from Root is $695.[1]
- Features: Root's app offers driving feedback, personalized good driving achievements, community and social features, and a driver scorecard tool in addition to typical insurer app features like policy management and claim filing.
Best for those who value privacy — Mile Auto
- Mileage tracking method: You receive a monthly reminder from Mile Auto's MVerity system to snap a photo of your odometer reading, which is automatically transmitted and mileage data is extracted, verified, and authenticated without you even having to download an app.
- Availability: AZ, CA, FL, GA, IL, OH, OR, PA, TN, TX, and WI.
- Coverages offered: All standard coverage options.
- Rate: Both your base rate and your per-mile rate are based on standard insurance variables; the company claims to be able to save customers 30-40%.
- Features: Mile markets itself as a champion of customer privacy and is unique in that it doesn't require the use of a car plug-in or phone app to monitor customer driving habits.
Best for temporary, liability-only coverage — Hugo Insurance
- Mileage tracking method: While not technically pay-per-mile, the company is one of the first to claim to be able to sell insurance that you can switch on and off as you need it. You purchase coverage for specific durations (3, 7, 14, or 30 days), paying solely for the period you'll be driving. However, "turning off" insurance can leave you at risk.
- Availability: Availability varies based on plan type; certain plans are not available in some states.
- Coverages offered: Hugo offers three main insurance plans: the "Flex" plan offers liability-only coverage to those who don't drive every day, while the "Unlimited Basic" plan is for those who want liability-only coverage but drive most days. Its "Unlimited Full" plan offers full coverage insurance.
- Rate: Hugo offers a flat daily rate based on the usual factors.
- Features: $0 down payment, flexible micropayments, simple daily rate, free "cancellation," pay-as-you-go, instant proof of insurance, and no upfront fees.
Compare popular pay-per-mile insurance providers
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Insider knowledge, trusted guidance.
Alejandro joined The Zebra in 2019 with over a decade of insurance experience. He began his career as a bilingual sales agent at Progressive Insuranc…
Credentials
- Licensed Insurance Agent — Property and Casualty
Erick began his insurance career at The Zebra in 2020, starting in an unlicensed role assisting customers before earning his Property & Casualty lice…
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- Licensed Insurance Agent — Property and Casualty
Amber Vigil has three years of experience in the insurance industry and joined The Zebra in 2024. As manager, she leads a group of sales agents, ensu…
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How is pay-per-mile car insurance different from telematics?
Pay-per-mile and telematics-driven insurance policies use different metrics to calculate your premium. Pay-per-mile auto insurance does not consider how you drive, while telematics auto insurance measures your driving behavior to set your premium.
A telematics device will track abrupt braking, sharp turns, high speeds, and late-night driving to assess how much risk you pose, while pay-per-mile insurance only uses your mileage to determine a rate. Both consider your non-driving factors, like age, location, and type of car when setting a base rate.
Here are some estimated discounts you can expect from telematics:
| Company | Estimated Savings |
|---|---|
| Progressive Snapshot | Up to 30% |
| Allstate Drivewise | Varies by state |
| State Farm Drive Safe & Save | Up to 30% |
| Nationwide SmartRide | Up to 40% |
| Liberty Mutual RightTrack | Up to 30% |
| GEICO DriveEasy | Up to 25% |
In many cases, telematics-based insurance offers a higher potential for savings but requires you to be honest about your driving habits. If you drive infrequently, but have a tendency to brake aggressively, make tight turns, or drive at night, a pay-per-mile policy will likely be a better fit than one that uses telematics.
Is pay-per-mile car insurance worth it?
Pay-per-mile auto insurance is a solid money-saving option for those who drive infrequently, drive short distances only, or want to insure a seldom used secondary vehicle, so we don't suggest this type of insurance for all drivers.
If you are simply looking for the best possible rate, shopping around is a good way to assess if pay-per-mile car insurance is worth it in your situation. The Zebra allows you to compare insurance products from many top insurance companies, giving you the chance to get multiple insurance quotes to see which plan is best for you. Call us at 1-888-255-4364 and we'll be happy to help you find the right insurance coverage for your needs.
Compare car insurance quotes side-by-side to save.
Frequently asked questions
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Data Methodology. The Zebra’s Dynamic Insurance Rating Tool
Data Methodology. The Zebra’s Dynamic Insurance Rating Tool
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Federal Highway Administration. Average Annual Miles per Driver by Age Group
Federal Highway Administration. Average Annual Miles per Driver by Age Group
About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.
