Pay-per-mile insurance is a type of car insurance policy that charges a premium based on the customer's actual mileage. With pay-per-mile car insurance, customers pay a daily or monthly base rate plus a per-mile rate of approximately 2 to 10 cents. The best pay-per-mile insurance companies are Allstate, Metromile and Mile Auto, as they offer competitive rates and easy-to-use programs. Most major auto insurance companies will offer discounted rates to policyholders who drive 12,000 miles per year or less.
Many car insurance companies will give you a discount if you take an approved defensive driving class. If you drive less, statistically, you're less likely to have a car accident and file an insurance claim. Your insurance company may also offer discounts if you install a car tracking device that records your driving habits, speed and mileage. That could be the case if you drive for pleasure, have a classic car that only leaves the garage on holidays, or you mainly use public transport and store your car.
Then, you can get quotes from several companies and compare how much you would spend on pay-per-mile insurance with the cost of a standard auto insurance policy from one of the cheapest insurers in your state. Metromile offers the cheapest pay-per-mile car insurance, while USAA offers the most affordable low-mileage car insurance. Finally, it's worth noting that pay-per-mile insurance is different from usage-based insurance programs, which record driving habits to offer current policyholders a discount or reimbursement. Each company has its own rating system, and finding the one that has the best prices for your specific situation is your goal when comparing car insurance quotes with at least three companies.
Compare car insurance quotes from different insurers to see which company can offer you the most affordable car insurance by mileage. Insurance premiums are related to your driving habits, so insurers want to know how you use your car and how often you drive.