Those who will benefit the foremost from pay-to-drive or pay-per-mile are people who drive but the national average of 12,000 miles p.a., or 1,000 miles. Even at some cents per mile, anything above 12,000 miles plus the bottom rate will make the service particularly expensive.

If you employ your car minimally, going with a pay per mile service can prevent plenty of cash. However, if you underestimate your driving habits, you will actually find yourself paying more.

Below we provide an example of how a pay-per-mile service can prevent money relative to other insurers, but only up to a specific monthly mileage. Metro mile is cheaper than GEICO up to 125 monthly miles and cheaper than State Farm up to 825 monthly miles.


Pay-per-mile and standard car insurance rates by mileage


Type Insurer Monthly rate at 0 miles Monthly rate at 125 miles Monthly rate at 825 miles
Pay-per-mile Metromile $26 $31 $59
Standard GEICO $31 $31 $31
Standard State Farm $59 $59 $59


Rates are for a minimum coverage policy within the state of California, for a 30-year-old single male driver of a 2015 Honda Civic EX.

Quotes can vary substantially across insurers, so a pay-per-mile service could also be more competitive with some carriers quite others. Drivers should be very mindful of their driving habits, like daily commute, before committing to pay-per-mile automobile insurance .

In addition to your mileage considerations, you’d wish to also understand these potential drawbacks:

  • Pay-per-mile insurance programs are only available in select states.
  • Some carriers that provide pay-per-mile insurance policies and telematics pricing schemes are relatively young and untested companies. Their financial strength to sufficiently payout claims over the top of the day isn’t tested relative to large national insurers.
  • Similarly, some customers complain of slower and inefficient claims processes with pay-per-mile programs like Metromile.

Final thoughts

All and everyone employing a pay-per-mile automobile insurance service can find yourself saving you an honest deal, but as long as you’re an infrequent driver. If your driving habits aren’t great either, you ought to avoid programs which track them, and may find yourself raising your rates more.

If you are feeling you pay way an excessive amount of for the quantity of drive, see if your company features a discount or program. Otherwise, you’ll see if another company’s discount will find yourself being cheaper than your current rate. Pay-per-mile programs are likely to expand to other states within the near future also.