Does State Farm offer pay per mile insurance?

Yes, State Farm insurance rates are competitive, since the company is one of the five cheapest insurers nationally, according to WalletHub’s cheap car insurance analysis. State Farm car insurance costs an average of $718 per year, or $60 per month.

Factors That Affect State Farm Insurance Rates

• State requirements
• Driving record
• Age
• Car make and model... read full answer
• ZIP code
• Marital status
• Gender

Sample State Farm Car Insurance Rates

Note: These rates are approximations based on sample quotes from State Farm. Actual rates will vary.

To learn more about how we obtained these sample quotes, check out the methodology section of our complete State Farm car insurance review.

Pay-as-you-go car insurance calculates a policyholder’s premium based on how many miles they drive each month. The policyholder’s mileage is tracked through a mobile app or device plugged into the vehicle, and customers who drive fewer miles pay a lower rate. Companies that offer pay-as-you-go car insurance, which can also be referred to as pay-per-mile or ... read full answerusage-based coverage, usually charge a monthly base rate and then add a fee for each mile driven.

Pay-as-You-Go Car Insurance Options

• Nationwide SmartMiles
• Allstate Milewise
• Metromile

Other major insurers offer usage-based programs that give drivers a discounted rate based on various driving habits, including miles driven. If your annual mileage is lower than the average driver, you may also qualify for a low-mileage discount.

Who Should Consider Pay-as-You-Go Car Insurance

Pay-as-you-go car insurance is often a good investment for people who don’t drive frequently, like students and seasonal workers. To learn more, check out WalletHub’s guide to usage-based insurance.

Pay-as-you-go car insurance might be worth it for people who do not drive frequently, including city-dwellers, retirees, those who work from home, seasonal workers, students and commuters. Under this type of policy, your monthly insurance rate will vary based on how much you drive. The less you drive, the more you save.... read full answer

Pay-as-you-go insurance is one form of usage-based car insurance. Companies like Metromile offer traditional pay-as-you-go insurance that’s based on the distance you drive. They normally charge a monthly base-rate plus a fee per mile driven. When you take longer trips, the insurance company will cap your miles, and you will not be charged for distances you drive above that cap.

Other usage-based programs, such as those offered by Root, Geico and Progressive, charge based on different types of driving data. These companies record driving behavior such as speeding and sudden breaking, and use it to calculate a score, which is then used to calculate your premium. Your age, the type of car you drive, and driving history are also used to calculate your rate in both types of usage-based programs.

The way insurance companies measure your driving behavior depends on the provider. Some companies will send you a small, wireless device that plugs into your car. More commonly, however, you will be asked to download an app on your phone.

Companies like Esurance suggest that a driver might be able to save up to $500 per year by selecting a pay-as-you-go or usage-based car insurance policy. So, if you are someone who doesn’t drive frequently and has a good driving record, it might be wise to consider switching to a pay-as-you-go insurance policy.