Pay-Per-Mile 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.

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 you won't be charged for miles driven after a certain point. Using the Metromile example, you would only be charged for driving 250 miles in a single day, or 150 miles if you live in New Jersey.

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

Pay-per-mile insurance works by charging a fixed daily or monthly premium in addition to a per-mile premium based on the customer's actual mileage in a policy period. Base rates and per-mile rates are calculated using factors like a policyholder's driving record, age, gender and ZIP code.

Key Things to Know About Pay-Per-Mile Insurance

• Pay-per-mile is relatively new and usually only works with cars made after 1996.
• Mileage is tracked using a device that plugs into your vehicle's OBD port.
• Most plans set a maximum number of miles a policyholder can be charged for in one day.

To learn more about the different pay-per-mile programs that are currently available, check out WalletHub's guide to pay-per-mile 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.

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.

Yes, State Farm offers a type of pay-per-mile insurance called Drive Safe & Save. This is technically usage-based insurance, which is similar to pay-per-mile coverage because it factors mileage into premium calculations, but it also considers driving habits such as distracted driving.

Drive Safe & Save Considers:

• Miles driven
• Acceleration
• Braking
• Turns
• Speed
• Distracted driving
• Time of day driven

It's important to note that these factors collectively affect a customer's insurance premium, so Drive Safe & Save is not strictly pay-per-mile. However, it's still a good option for safe, low-mileage drivers who don't mind being tracked for insurance purposes. For more information, check out WalletHub's guide to usage-based insurance.

No, Geico does not offer pay-per-mile insurance. Geico does have a low-mileage discount for people who drive fewer than 7,500 miles per year and a usage-based insurance program called DriveEasy that can make car insurance more affordable. Registering for Geico's usage-based insurance program could save drivers up to 20%.

Alternatives to Geico Pay-per-Mile Insurance

The Geico DriveEasy app monitors driving habits like speeding, hard braking, total mileage, and more using your phone's sensors and GPS location. Geico uses this data to calculate a driving score and adjust your premium discount.

Usually, car insurance rates are determined by a driver's history on the road as well as factors like age, credit score, and zip code that help insurers predict future driving behaviors and levels of risk. Usage-based programs like the DriveEasy app, on the other hand, show insurance companies your actual level of risk, so drivers only pay for the insurance they need.

Pay-per-mile insurance is a bit different, since it involves paying a base rate plus a per-mile fee. It's currently offered by one provider, Metromile, in just eight states. Geico may be able to provide more robust coverage just as affordably, though, because they offer such a wide variety of discounts. But if you need cheaper, low-mileage coverage, you should make sure to compare rates from at least three insurers to confirm you get the best price for your unique needs.

You can get pay-per-mile insurance in Texas from Allstate Milewise, Mile Auto, Nationwide SmartMiles, and Noblr by USAA. Pay-per-mile insurance is a type of car insurance policy that charges drivers a daily or monthly base rate plus a few cents for each mile driven. Each policyholder's base rate is calculated according to normal car insurance rating factors, such as driving record, age, and ZIP code.

Notable Pay-Per-Mile Insurance Companies in Texas

• Allstate
  
• Mile Auto
  
• Nationwide
• USAA

Pay-per-mile insurance can be an easy way for Texas drivers to save if they use their cars infrequently. For example, retirees, remote workers, and students who walk to class can benefit from pay-per-mile insurance. Individuals or families with an extra car that is rarely used should also consider pay-per-mile coverage.

For more information, check out WalletHub's complete guide to pay-per-mile insurance.

Progressive pay-per-mile insurance costs an average of $145 less than a standard six-month policy. Progressive does not have pay-per-mile in its most literal form, where customers are charged a low base price plus a per-mile rate. But Progressive Snapshot is a usage-based insurance program, which is one form of pay-per-mile insurance.

With usage-based insurance like Progressive Snapshot, your driving is monitored using your smartphone or a plug-in device provided by the company. Progressive adjusts your premium every time you renew your policy based on actual driving habits like:

• Total mileage
• Late-night driving
• Hard braking and accelerating
• Distracted driving

It is possible your rates could increase with high-risk driving, but 8 out of 10 drivers see their rates go down with Progressive Snapshot, per the company's data. You could also save $26 on your premium right away, just for signing up. But this discount isn't available to drivers in Alaska, California, Hawaii, North Carolina, or New York. Progressive offers specific details about what you can expect from Snapshot in each state on its website.

You can sign up for Snapshot when you purchase your policy or by calling 1-877-329-7283.

No, you can't get weekend car insurance from any legitimate insurance company. There's no way to buy coverage that only applies to Friday-through-Sunday driving because reputable insurers do not sell policies for less than six months.

State laws require drivers to have proof of financial responsibility, which is almost always met with car insurance. A policy that only covers a car on certain days of the week would be illegal. There are still ways to save on car insurance if you're a weekend driver, though.

Pay-per-mile insurance has low premiums for infrequent drivers.

Pay-per-mile insurance policies charge customers a base price (determined by their risk factors), plus a small per-mile fee. This model has become more popular as insurers have adopted telematics, a technology that allows them to track mileage through smartphone apps or through electronic devices that attach to your car. Keep in mind that pay-per-mile insurance is not available in every state.

Pay-per-mile insurance can be purchased through:

• Allstate (Milewise)
• Nationwide (SmartMiles)
• Liberty Mutual (ByMile)
• Metromile
• Mile Auto

Besides pay-per-mile policies, occasional drivers can save by taking advantage of usage-based insurance. Usage-based insurance programs like Progressive Snapshot, State Farm Drive Safe & Safe, and Esurance DriveSense discount premiums based on driving habits, which may include mileage.

Policies are cheaper when adjusted for infrequent drivers. 

Insurance premiums are related to your driving habits, which is why insurers want to know how you use your car and how often you drive. As a result, infrequent drivers can save by taking advantage of discounts and special policy options.

Here's how being a weekend driver can save you money:

• Non-owner car policy. If you don't own a car but borrow or rent one frequently, a non-owner policy may be the coverage you need. It costs less than standard insurance because it works to supplement the car owner's insurance policy if you get into an accident while driving someone else's car.

• Classic car policy. Car collectors may qualify for specialty coverage with a lower premium. Eligibility varies by insurance company, but cars usually need to be exotic, antique, or high-performance. Most companies also require the car to be used for pleasure driving only. 

• Low mileage status. U.S. drivers average around 13,500 miles per year. If you drive less than the average person, you can get a low-mileage discount from some insurance companies.

If you really only need insurance for a weekend or two, you could always get coverage for a short time by purchasing a standard insurance policy and canceling it when you don't need it anymore. If you cancel your policy, you'll receive a prorated refund for the coverage you paid for but didn't use. The downside is that your rates could go up the next time you need a policy, since insurers view lapses in coverage to be a greater risk.

No, you can't get one-day car insurance. Many websites give the impression that you can find one-day car insurance, but there's a reason they don't mention where to buy it or which companies offer it: one-day car insurance policies don't really exist—in some cases, they may be scams.

The only time you can get one-day coverage is if you pay for rental car insurance at the counter. No reputable insurance company will offer a policy shorter than six months for your own car. And even in the case of rental cars, you may be covered by your current policy or have other, better alternatives.

Alternatives to One-Day Car Insurance

Non-owner policies

People looking for one-day insurance coverage are usually borrowing a car. In that case, non-owner car insurance may be an option. Non-owner insurance supplements the owner's policy after an accident.

Insurance usually follows the car, so the owner's insurer will pay for the claim. But if damages exceed the owner's policy limits, you're financially responsible. A non-owner policy kicks in as secondary coverage to protect you while driving a borrowed car.

Pay-per-mile policies

If you're an infrequent driver, a pay-per-mile policy (also known as usage-based insurance) may fit your needs better than one-day insurance. Pay-per-mile policies price your premium based on how much you drive and how responsible you are when driving, as measured by an electronic monitoring device that attaches to your car or operates through a phone app.

Such usage-based policies can be purchased through Progressive, State Farm, Esurance, Nationwide, Liberty Mutual, and more.

Low-mileage policies

If you drive less than 5,000 miles per year, you fall into the low-mileage bracket and likely qualify for cheaper insurance. That could be the case if you drive for leisure, own a classic car that only comes out of the garage on holidays, or mostly use public transportation and store your car.

Standard policies

You could always purchase a standard policy and cancel it when you don't need it anymore. You pay for coverage in advance, so when you cancel, you'll get a prorated refund. But even if you cancel one day into the policy period, you're not guaranteed a full refund. In addition to possible cancelation fees, you could be billed for more days of coverage than you need.

Bottom Line on One-Day Car Insurance

A one-day insurance policy is not something insurance companies offer, but there are better policy options to meet your short-term needs. For more information, you can check out WalletHub's guide on temporary car insurance.