Updated: March 28, 2025
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Pay-per-mile insurance adjusts your premium based on how much you drive, making it a cost-effective option for low-mileage drivers.
While Metromile specializes in pay-per-mile coverage, major insurers like Nationwide and Allstate are expanding their offerings.
Behavior-based insurance evaluates driving habits rather than mileage. Companies like Root specialize in this model.
Pay-per-mile insurance charges drivers based on mileage, combining a base rate with a per-mile fee. It's a cost-effective choice for low-mileage drivers. Unlike behavior-based insurance, which monitors driving habits, pay-per-mile focuses solely on the distance driven.
Pay-per-mile insurance calculates your monthly cost using a base rate and a per-mile fee, influenced by age, location, driving history and provider. For example, with a $60 base rate and $0.10 per mile, driving 1,200 miles in a month would cost $180.
Pay-per-mile and behavior-based car insurance both adjust premiums based on usage, but they focus on different factors. Pay-per-mile insurance calculates costs based on how many miles you drive, making it a good choice for low-mileage drivers. Behavior-based insurance adjusts rates based on how safely you drive. It rewards responsible habits and may raise rates for risky behaviors.
Behavior-based insurance often tracks driving behaviors such as:
Behavior-based insurance plans reward safe driving habits, such as smooth driving, with lower premiums. However, engaging in unsafe behaviors could lead to higher rates.
Pay-per-mile car insurance typically costs between $57 and $139 per month for comparable coverage. The total cost depends on your base rate, per-mile charge and the number of miles you drive.
The table below compares estimated monthly rates from various insurers, showing how costs vary based on mileage and provider.
Insurer | Monthly Rate | |
|---|---|---|
1. | Metromile (26 miles per week) | $65 |
2. | GEICO | $66 |
3. | Mercury | $72 |
4. | Country Financial | $72 |
5. | USAA | $73 |
6. | State Farm | $79 |
7. | Metromile (65 miles per week) | $80 |
8. | Erie | $84 |
9. | Progressive | $85 |
10. | American Family | $90 |
11. | Travelers | $94 |
12. | Allstate | $98 |
13. | Metromile (130 miles per week) | $103 |
14. | Farmers | $111 |
15. | MetLife | $116 |
16. | Nationwide | $123 |
17. | AAA | $139 |
18. | Metromile (260 miles per week) | $149 |
*Note: MoneyGeek’s sample quote from Metromile in Illinois includes a $57 base rate and $0.08 per mile, totaling $65 per month for low-mileage drivers. This is slightly lower than GEICO’s $66 and much less than AAA’s $139 for similar coverage.
Pay-per-mile insurance works well for low-mileage drivers, including remote workers, retirees and those who use their cars occasionally. If you drive less than 10,000 miles annually, it may cost less than a traditional policy. Based on Metromile’s pricing, drivers traveling fewer than 26 miles weekly could see the biggest savings. However, if you drive often, a standard policy might be more affordable.
Pay-per-mile insurance is a good choice for low-mileage drivers, but it isn't widely available. Only a few major insurers, such as Nationwide, Allstate and Liberty Mutual, offer these programs in select states. The table below outlines the available options and their coverage areas.
Insurance Company | Pay-Per-Mile Program Description | Discount | States Available |
|---|---|---|---|
MetroMile | Charges a monthly rate and a rate per mile driven. | None | Eight states: AZ, CA, IL, NJ, OR, PA, VA, WA |
Nationwide | SmartMile program charges a base monthly rate and a per-mile rate. Provides an exception for road trips — only the first 250 miles driven in a day count toward your premium. | Up to 10% for safe driving. | 40 states: AR, AZ, CO, CT, DC, FL, GA, IA, ID, IL, IN, KS, KY, MD, ME, MI, MN, MO, MS, MT, ND, NE, NH, NM, NV, OH, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY |
Allstate | Allstate’s Milewise program charges drivers a daily rate plus a rate per mile driven. | None | 16 states and Washington D.C.: AZ, DE, FL, ID, IL, IN, MA, MD, NJ, OH, OR, PA, TX, VA, WA, WV |
Liberty Mutual | ByMile program tracks the number of miles you drive. You’re billed based on miles driven in the prior month plus a base rate. Never charges drivers for more than 150 miles per day. | None | Available in select states. |
Pay-per-mile insurance can help low-mileage drivers save money, but comparing coverage, customer service and claims processes is important before selecting a policy. Top providers include Metromile, Nationwide, Liberty Mutual and Allstate. Nationwide’s SmartMiles program is notable for its affordability, availability in 40 states and safe driving discounts.
Nationwide is the top choice for pay-per-mile car insurance. Available in 40 states, it's the most widely accessible option. Drivers can save even more with up to a 10% discount for safe driving. Also, Nationwide charges only for the first 250 miles driven per day, which benefits those who take occasional long road trips.
Available in: AR, AZ, CO, CT, DC, FL, GA, IA, ID, IL, IN, KS, KY, MD, ME, MI, MN, MO, MS, MT, ND, NE, NH, NM, NV, OH, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV and WY
Allstate’s Milewise program charges a daily rate plus a per-mile fee, allowing drivers to pay based on usage. Available in 16 states and Washington D.C., it's more accessible than some competitors. However, it doesn't offer discounts, so savings depend solely on driving habits.
Available in: AZ, DE, FL, ID, IL, IN, MA, MD, NJ, OH, OR, PA, TX, VA, WA, WV and DC
Metromile's pay-per-mile insurance charges a monthly base rate plus a per-mile fee, making it ideal for low-mileage drivers. It uses a tracking device to monitor mileage but doesn't offer discounts, so savings depend entirely on how little you drive.
Available in: AZ, CA, IL, NJ, OR, PA, VA and WA
Liberty Mutual’s ByMile program tracks mileage and bills drivers based on miles driven in the previous month plus a base rate. Its 150-mile daily cap prevents excessive charges for long trips. Availability is limited to select states, and the program doesn't offer discounts.
Pay-per-mile insurance adjusts costs based on mileage, making it a good option for low-mileage drivers. This guide explains how it works, who benefits most and how top insurers like Metromile, Nationwide and Allstate stack up. Compare quotes to find the best match for your driving needs.
Pay-per-mile car insurance is a newer option, leaving many drivers curious about how it works and if it’s a good fit. MoneyGeek addresses common questions to help you better understand this coverage.
Pay-per-mile insurance can be cost effective for infrequent drivers. According to sample rates from Metromile, those driving fewer than 26 miles per week may save money compared to traditional policies.
Insurance companies determine pay-per-mile costs using a base rate and a per-mile charge. Similar to standard policies, rates depend on your location, age, and driving history.
Nationwide is a top choice for pay-per-mile insurance. Its SmartMiles program is available in 40 states, making it the most widely accessible option evaluated by MoneyGeek. SmartMiles also tracks driving habits, offering additional savings to safe drivers.
Study Overview
MoneyGeek analyzed the average cost of pay-per-mile car insurance from various providers, comparing costs across coverage levels and for high-risk drivers.
Data Sources and Depth
The study involved analyzing 83,056 quotes from 46 insurers across 473 ZIP codes. Data was sourced from state insurance departments and Quadrant Information Services.
Driver Profile
MoneyGeek used an average driver profile to estimate costs. Characteristics varied by location, but the typical profile included:
Coverage Levels and Deductibles
For national averages, the analysis used standard insurance with 100/300/100 coverage:
State averages were calculated using 50/100/50 coverage:
We used a $1,000 deductible for both calculations. This deductible is the amount policyholders must pay before insurance covers a claim. For example, with a $2,000 claim, the policyholder pays $1,000, and the insurer covers the remaining $1,000.
Learn more about MoneyGeek's methodology.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
