The average American car owner drives just over 13,000 miles per year[1]. The more you drive, the more likely you are to get into an accident. Some drivers drive far less than that, and if you’re one of them, pay-per-mile car insurance could save you money.

If you drive less than 10,000 miles a year, you can potentially save money using pay-per-mile car insurance. These policies let you pay premiums based on the mileage you drive.

Let’s take a look at some of the top pay-per-mile insurance options.

Pay-Per-Mile Car Insurance Providers

In this article, we’ll look at four pay-per-mile car insurance providers. All of these companies have policies that charge you based on the number of miles you drive.

  1. Allstate Milewise 🏆 Best for Safe Drivers
  2. Metromile 🏆 Best for City Drivers
  3. Nationwide SmartMiles 🏆 Best for Program Availability
  4. Mile Auto 🏆 Best for Data Privacy

These pay-per-mile car insurance programs have minor differences in how and when mileage is charged. There are also differences in what information is tracked and what features are offered.

We’ll highlight these differences as we explore each of these insurers.

🚗 Learn more: Wondering about Karma Drive or Root Insurance? Our reviews provide insights to help you choose the right one.


Allstate Milewise

Allstate offers a pay-per-mile insurance plan with discounted rates that can be further discounted if you are a safe driver. In 10 states, information on your driving habits, such as acceleration and braking, will be calculated into your personalized daily and mileage rates. The safer your driving habits, the lower your rates.

Even in states where this driving data can’t be used to determine your rates, you can still earn Allstate safe driver reward points redeemable for gift cards, retail items, sweepstakes entries, and more.

Pay-per-mile car insurance: Allstate Milewise page
Maximum daily miles charged250 (150 in OR, IL, IN, OH & NJ)
Equipment neededApp & plug-in device
Additional discountsAllstate rewards and rate discounts for safe driving
Program availability20 states

Milewise FAQs

What Information Does Mileswise Track?

In addition to miles driven, Allstate tracks the following data

  • Speed
  • Time
  • Location
  • Events

Depending on the state in which you reside, this information can be used in your daily rate and mile rate calculations (AZ, FL, MA, MN, MO, OK, PA, SC, TX, WI).

How is Milewise Charged?

A Milewise policy is charged daily and consists of your daily rate plus your mileage rate.

For example, Allstate offers sample rates of $1.50/day and $0.06/mile. If you drove 16.7 miles a day, you would be charged approximately $2.50/day ($1.50 daily rate + $0.06 x 16.7). This totals $75/month if you drive the same amount daily.

When Do You Pay?

When you open a Milewise policy, you prepay a set amount to your account. Your base rate and mileage are deducted from your account funds daily. You can reload your account as needed or set up auto-reload.

Visit Allstate Milewise



Metromile is the smallest insurer on our list, currently offering pay-per-mile insurance in only 8 states. As their name suggests, they can be a good fit for those living in major metropolitan areas.

There are 4 main reasons for this.

  1. You can track your car if it is ever lost or stolen
  2. Driving habits, which can be negatively influenced by rush-hour traffic, are not tracked in CA, NJ, or WA
  3. Metromile provides free street-sweeping alerts to help you avoid being ticketed
  4. Try before you switch to Ride Along
Pay-per-mile car insurance: Metromile - homepage
Maximum daily miles charged250 (150 in NJ)
Equipment neededDevice only
Additional discountsMulti-car, safe driving
Program availabilityAZ, CA, IL, NJ, OR, PA, VA, & WA

Metromile FAQs

What Information Does Metromile Track?

In addition to mileage, Metromile’s plug-in device tracks

  • Average speed
  • Time of day
  • Day of week
  • Trip duration

This information cannot affect your rates in California, New Jersey, or Washington.

How is Metromile Charged?

This insurance policy is charged in two parts: your base rate and mileage.

On its website, Metromile features a real customer base rate of $29/month and a mileage rate of $0.06. If you drove 500 miles in one month, your final total would be $59 ($29 + $0.06 x 500).

When Do You Pay?

Metromile policies are charged monthly. Each month, you’ll pay that month’s base rate plus your total mileage for the previous month.

Visit Metromile


Nationwide SmartMiles

The biggest downside to pay-per-mile insurance programs is that they are often only available in a limited number of states. This is where SmartMiles excels, as the program is offered across 44 states, including California.

You can also mix and match your insurance, having traditional policies on some vehicles and pay-per-mile policies on others. This can be great if there is a significant usage discrepancy between the vehicles in your household.

Pay-per-mile car insurance: Nationwide - insurance - SmartMiles page
Maximum daily miles charged250 
Equipment neededPlug-in device or connected car
Additional discountsSafe driving
Program availability44 states

SmartMiles FAQs

What Information Does SmartMiles Track?

In addition to mileage, SmartMiles tracks the following information

  • Hard braking
  • Acceleration (above 7.7 miles per second)
  • Nighttime driving (midnight to 5 AM)

How this information can be used varies based on state. For example, California only allows mileage to be used in rate calculations.

How is SmartMiles Charged?

This insurance is charged in two parts: your monthly base rate and your rate per mile driven.

Nationwide’s website offers a real-world example of a $60/month base rate and a $0.07 mileage rate. If you drove 500 miles in one month, your total charge would be $95 ($60 base rate + $0.07 x 500).

When do you pay?

Your SmartMiles policy is paid on a monthly basis. Each month, you’ll pay your base rate premium plus the total mileage charge from the previous month.

Visit Nationwide SmartMiles


Mile Auto

Your data can be very personal, and you may want to keep your insurance company from knowing where you go every day. If this is the case, Mile Auto may be a good pay-per-mile insurance fit.

Mile Auto does not require using an app or installing a device in your car. Instead, they simply ask you to snap a picture of your odometer each month and send it in. That is all they need to track your mileage.

MileAuto homepage
Maximum daily miles chargedNot capped
Equipment neededSmartphone camera
Additional discountsnone
Program availabilityAZ, CA, FL, GA, IL, OH, OR, PA, TN, TX, & WI

Mile Auto FAQs

What Information Does Mile Auto Track?

Your mileage, that’s it.

How is Mile Auto Charged?

A Mile Auto policy comes with a base rate month charge plus a mileage rate.

On its website, Mile Auto presents a $48 base rate and $0.08 mileage rate as an example. If you were to drive 500 miles a month at this rate, you would pay $88 ($60 base rate + $0.08 x 500).

When Do You Pay?

Mile Auto is not very transparent with when/how payments are made. After repeated attempts to contact them, we were able to verify that they do, in fact, charge a deposit, and policies are paid monthly.

Visit Mile Auto

Comparing Pay-Per-Mile Car Insurance Companies

These pay-per-mile insurance policies have many similarities, but there are some key differences. Below, we compare them using the 4 points we think are make or break in choosing a pay-per-mile insurance provider.

Program availabilityTracks driving habits?Has a cap on mileage charges?Mix and match policies?
Milewise20 statesYesYesYes
Metromile8 statesYesYesNo
SmartMiles44 statesYesYesYes
Mile Auto11 statesNoNoNo

🚗 Learn more: Find out how much car insurance typically costs for a 17-year-old with our detailed analysis.

Pay-Per-Mile Car Insurance Alternatives

Remote workers, retirees, city dwellers, students, etc., who don’t drive very much, can benefit from pay-per-mile programs, but they aren’t the only way to save money on your insurance. Here are some other solutions.

  1. Check your current provider for a low-mileage discount.
  2. Look at usage-based car insurance – mileage is one of the metrics these programs look at.
  3. Explore pay-as-you-go plans. Insurers like Hugo let you turn your coverage on/off and purchase as little as 3 days at a time.
  4. Sell your car. If you seldom drive, it may be cheaper to sell your vehicle and rent or borrow one as needed.

And remember, your insurance choice is not permanent. If you don’t like your policy or your driving needs change, you can always switch insurance providers later.

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