I live only two miles from work and oftentimes even work from home, which means I barely drive. Therefore, I didn’t think it was fair for me to pay the same amount of auto insurance every month as everyone else. I started digging around and researched my options and was able to find a car insurance that charges based on how many miles are driven each month. This only seems fair because everyone drives varying distances month-to-month and you would only pay for the distance you drive.
You don’t pay for electricity you don’t use, you don’t pay for water you don’t use, so why pay extra for car insurance on miles you don’t drive?
I personally switched over to Metromile Pay-Per-Mile car insurance over a year ago and last year in 2018, I saved over $840. It makes car ownership easy and affordable for low-mileage drivers.
With the increase in ride-sharing use such as Uber and Lyft, you end up paying not only for the ride-sharing service when you use it, but at the same time paying for your car insurance when it’s sitting in the garage. If you spend less time behind the wheel, I believe you should spend less on car insurance.
Who is Pay-Per-Mile for?
Pay-Per-Mile insurance is a great idea for you if you drive on average, less than 200 miles/week. This could be a great option for someone who works from home, someone who has a short commute to and from work, has a short travel to and from school and someone who travels often.
Keep in mind, the charges are billed on a monthly basis which means that if you don’t drive over 800 miles total within a monthly billing period, then the pay-per-mile plan may be a good option for you.
If you’re not sure how much you drive each week or month, then reset your trip meter (trip odometer) to record your total distance traveled within a certain period to find out.
How is it priced?
You pay a low fixed rate every month and a per mile rate. Rates are determined based on your age, residential location, type of vehicle, insurance history, credit history and driving record. This rate is then fixed for 6 months.
Here’s an example of how it is billed:
Let’s say you drive on average 10 miles/day X 30 days = 300 miles/month
Per-mile Rate (300 miles driven x 3.2 cents per mile) $9.60
Base Rate $30.00
Monthly Total (Base rate ($30.00) + per-mile rate ($9.60) = $39.60
*Please note, rates vary with driver
Here’s the great news: Your per-day mileage charges are capped at 250 miles per day (150 miles in New Jersey). What this means is if you travel on a long road trip that extends more than 250 miles (150 miles in New Jersey) for any calendar day, you will only be charged up to 250 miles.
I recently had to file a claim due to another vehicle hitting my car and I have to say that I received exceptional customer service from the beginning of my claim to the time I received the refund check for my deductible. Yes, there is a customer service number where you can talk to a live person. However, it is certainly convenient to have the option of making a claim through the app as well.
What’s the Catch?
There is no catch for as long as you are a low mileage driver who resides in states serviced by Metromile (see below). If you don’t drive your car at all for a given billing month, then you only pay the low monthly fixed rate. If you do drive, then the per mile rate will be addedto the fixed rate.
States Where Pay-Per-Mile Insurance is Offered
- New Jersey
I heard more states will be added in the future. However, if you or anyone you know who resides in any of these states and would benefit from the Pay-Per-Mile plan, then head on over to Metromile and get a free quote.