Pay-Per-Mile Car Insurance

Metromile uses two things to determine your rate: your driving profile and your monthly mileage. Your monthly driving mileage is calculated through “Metromile Pulse.” The company uses a wireless device that plugs into your vehicle’s OBD-II port to count the distance you drive. You can monitor your mileage through the Metromile app.

In addition to charging you based on the number of miles you drive, Metromile charges a monthly base fee. The base rate is determined by a driver's profile, so it’s hard to give an accurate estimate of Metromile rates. Because the number of miles you drive per month may vary, your bill may change by the month.

Although its pricing works differently than other providers, Metromile still provides the same coverages: liability, uninsured motorist, collision, comprehensive and other common coverage options.

Esurance’s pay-per-mile system works a little differently than Metromile’s. Esurance isn’t a strictly pay-per-mile car insurance company. But the company offers a usage-based driving program in addition to a standard insurance option. Esurance advertises a program for low-mileage drivers specifically, with low-mileage drivers defined as those traveling fewer than 10,000 miles per year. Esurance’s pay-per-mile coverage is available in select states and excludes electric vehicles and hybrids.

Esurance's pay-per-mile insurance program uses a plug-in device in the OBD-II port to record your mileage and determine your per-mile fee. Your base rate is assigned based on your age, gender, driving history, and vehicle-specific information. If your mileage fluctuates, your bill will vary.

Nationwide's pay-per-mile auto insurance offering is designed for low-mileage drivers who have little or no commute who are looking to save on their insurance costs. A Smartmiles auto insurance policy is comprised of a base rate and a variable rate that is determined by how much you drive. Some of the features Nationwide offers include a discount for safe driving, a handy mobile app that works as a mileage-tracking odometer, and a road trip exemption in which only the first 250 miles count during a single day. Expect the common coverage types, including liability, comprehensive and collision coverages. This service is available in most states and compatible with most cars produced after 1996.

Allstate's Milewise operates similarly to other pay per mile auto insurance policies, using a base rate with an additional charge for each mile driven. Utilizing a plug-in device, Allstate Milewise determines your base rate in a similar manner to telematics, using your driving habits to inform your rate. The associated app allows you to track your mileage and even set weekly goals. This program is currently available in the following states: Delaware, Florida, Idaho, Illinois, Indiana, Maryland, Massachusetts, New Jersey, New Mexico, Ohio, Oregon, Pennsylvania, Texas, Virginia, West Virginia, Washington.

Hugo Insurance is a newcomer in the space, but its insurance offerings are truly unique. 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. Customers simply use the smartphone app to turn on coverage before taking a journey and turn it off when they are finished. Furthermore, they offer liability insurance for shorter amounts of time than most standard policies. Customers can purchase liability coverage in 3, 7, 14, or 30 days increments, allowing them to only pay for what they use. For now, availability is limited, as is its coverage (Hugo only offers liability at this time).

The company's business model certainly raises questions. For one, turning off insurance can leave you at risk if you park your car in a public area (such as a street). Also, it's unclear what happens if a driver simply forgets to turn their insurance on before heading out — though it appears that the driver simply wouldn't be covered. Furthermore, information on the company and its offerings is still rather limited, so many potential customers may wish to let the company mature before signing up. 

Currently available in Arizona, Georgia, Illinois, and Oregon, Mile Auto is another newcomer to pay-per-mile insurance. The company claims to be able to save customers 30-40% compared to standard insurance rates. On top of standard liability and physical damage coverages, Mile Auto also offers additional coverages like rental vehicle reimbursement and roadside assistance.

More akin to a standard telematics company, Noblr Insurance indicates that the fewer miles you drive with a Noblr policy, the less you will pay. Along with mileage, the app tracks how and when you drive to arrive at your rates. Noblr is currently available in the following states: Arizona, Colorado, Louisiana, Maryland, New Mexico, Ohio, Pennsylvania and Texas with more states proposed for the near future.