Pay-Per-Mile Car Insurance Coverage: What to Know

Pay-per-mile insurance is based on the number of miles you drive. Most of the major national providers, such as Progressive, Esurance, Allstate, State Farm, and others, offer some form of pay-per-mile program. The key to having cheap pay-per-mile car insurance is driving your car less and keeping up with your mileage.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent

UPDATED: Apr 9, 2021

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Things to Know

  • Pay-per-mile insurance coverage requires drivers to track and pay for their average mileage
  • Insurance companies like Allstate, Nationwide, and more offer pay-per-miles programs
  • Drivers can save up to 40% as compared with other insurance policies

Whether you are a first-time buyer or are switching policies, buying car insurance is a challenging task. With so many car insurance companies and policies out there, it is overwhelming to find what works best for you for a reasonable rate.

If you are looking for a cheap car insurance policy and do not drive a lot over the long-term, pay-per-mile insurance is an option to consider. Keep reading for more information on pay-per-mile car insurance coverage.

Before learning more, enter your ZIP code into our free online tool for affordable pay-per-mile insurance quotes in your area.

What is pay-per-mile insurance?

Pay-per-mile insurance is a type of usage-based insurance in which you only pay for the miles you drive. With a usage-based insurance policy, drivers must track their mileage either through an app or a plug-in device provided by the insurer.

Average miles are tracked daily, monthly, or yearly depending on the insurance company and the specific pay-per-mile program.

Many people choose pay-per-mile car insurance because it is a cheaper car insurance option. Although it requires some extra work on your part, the savings are high.

Pay-per-mile insurance is different from usage-based insurance in that it is considered with only how far you drive, not how well you drive.

Drivers can save anywhere between 20 and 40 percent using pay-per-mile coverage as opposed to other car insurance policies. This is something to consider if your current insurance rates are higher than you want.

If you want the best rates on any car insurance policy, shopping around is the best way to go. The Insurance Information Institute suggests that drivers compare prices from at least three different companies to get a well-rounded view of the options available.

It’s also important to remember that car insurance by state varies, so it’s best to compare pay-per-mile insurance companies and policies in your area.

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Which insurance companies offer pay-per-mile car insurance?

Because pay-per-mile insurance is an environmentally conscious coverage option, the vast majority of the top car insurance companies offer it. Similar to low mileage insurance discounts, it just makes sense to pay less for insurance for driving less.

Check out the table below to see some of the top usage-based or pay-per-mile insurance companies and programs.

Pay-Per-Mile and Usage-Based Insurance Companies, Programs, and Devices
Insurance CompanyProgramDeviceUBI or PPM
AAAAAADrive/AAAOnboardMobile AppUBI
AllstateDrivewiseMobile AppUBI
AllstateMilewiseMobile AppPPM
American FamilyKnowYourDrivePlug-inUBI
EsuranceDriveSenseMobile AppUBI
Liberty Mutual/SafeCoRightTrackMobile App and Plug-inUBI
Liberty MutualByMileMobile App and Plug-inPPM
MetLifeMy JourneyPlug-inUBI
NationwideSmartRideMobile App or Plug-inUBI
NationwideSmartMilesMobile App or Plug-inPPM
ProgressiveSnapshotMobile App or Plug-inUBI
Mile AutoMile AutoNeitherPPM
State FarmDrive Safe & SaveMobile App or Plug-inUBI
The HartfordTrueLanePlug-inUBI
TravelersIntelliDriveMobile AppUBI
MetromileMetromileMobile AppPPM
GEICODriveEasyMobile AppUBI
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Although each of these companies offers a usage-based or pay-per-mile program, each one is different.

For instance, Allstate’s pay-per-mile coverage, called Milewise, charges drivers a certain amount per mile per day through a plug-in device. At the same time, SmartMiles through Nationwide is calculated monthly through a plug-in device.

Other companies take your average miles driven per year to calculate how much you will pay for your insurance. If your average mileage per year is relatively low, consider talking with your local insurance agent about your pay-per-mile insurance options.

If you have any additional car insurance questions, we’re here to help. We have plenty of company and car reviews available through our website to help you in your search.

Ready to buy pay-per-mile insurance? Just enter your ZIP code into our free online tool for affordable pay-per-mile insurance rates in your area.

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