Is pay-per-mile car insurance worth it? This question is about Pay-Per-Mile Car Insurance

Yes, pay-per-mile car insurance is worth it for people who drive fewer than 12,000 miles per year, which is the national average. Pay-per-mile insurance is a type of car insurance policy that charges drivers a daily or monthly base rate in addition to a per-mile fee, and it’s an affordable policy alternative for low-mileage drivers. For example, Metromile advertises that customers save an average of $611 per year when they switch from standard insurers. Drivers Who Could Benefit From Pay-Per-Mile Insurance People who work from home Weekend drivers People who frequently bike, walk, or use public transportation Retirees who don’t drive often College students who don’t commute Drivers whose leased cars have strict mileage limits Individuals with an extra vehicle that’s rarely used If you’re curious about how much you can save with pay-per-mile insurance, you should first estimate your annual mileage, then compare quotes from different companies. Some insurers like Metromile exclusively sell pay-per-mile insurance, while other major insurers like Allstate and Nationwide sell pay-per-mile insurance in addition to standard policies. To learn more, check out WalletHub’s guide to pay-per-mile insurance.

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Is pay-per-mile car insurance worth it?

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This question is about Pay-Per-Mile Car Insurance

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@WalletHub • 06/15/21 This answer was first published on 06/15/21. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Yes, pay-per-mile car insurance is worth it for people who drive fewer than 12,000 miles per year, which is the national average. Pay-per-mile insurance is a type of car insurance policy that charges drivers a daily or monthly base rate in addition to a per-mile fee, and it’s an affordable policy alternative for low-mileage drivers. For example, Metromile advertises that customers save an average of $611 per year when they switch from standard insurers.

Drivers Who Could Benefit From Pay-Per-Mile Insurance

People who work from home
Weekend drivers
People who frequently bike, walk, or use public transportation
Retirees who don’t drive often
College students who don’t commute
Drivers whose leased cars have strict mileage limits
Individuals with an extra vehicle that’s rarely used

If you’re curious about how much you can save with pay-per-mile insurance, you should first estimate your annual mileage, then compare quotes from different companies. Some insurers like Metromile exclusively sell pay-per-mile insurance, while other major insurers like Allstate and Nationwide sell pay-per-mile insurance in addition to standard policies.

To learn more, check out WalletHub’s guide to pay-per-mile insurance.

How much does pay-per-mile insurance cost?

Pay-per-mile insurance typically costs 2-10 cents per mile driven, plus a daily or monthly base rate that depends on factors like the customer’s age and driving history. By switching to pay-per-mile insurance, low-mileage drivers can save up to 49% annually on their car insurance premium.

For example, Metromile advertises a sample rate of $29 per month plus six cents for each mile driven. Additionally, most pay-per-mile insurance policies have a mileage cap, meaning that...

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What happens if I drive more miles than my insurance has listed?

Do insurance companies check your mileage?

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