Cheap Pay-Per-Mile Insurance
Pay-per-mile insurance is offered through nationwide companies, like Allstate and Esurance, as well as smaller names in auto insurance. Pay-per-mile insurance cost depends solely on how far you drive each month. Drivers can opt for the app, a device, or odometer recordings. If your average miles driven in a year is less than 10,000 miles, consider pay-per-mile insurance.
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Scott W Johnson is an independent insurance agent in California. Principal Broker and founder of Marindependent Insurance Services, Scott brings over 25 years of experience to his clients. His Five President’s Council awards prove he uses all he learned at Avocet, Sprint Nextel, and Farmers Insurance to the benefit of his clients. Scott quickly grasped the unique insurance requirements of his...
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Updated February 2026
- Pay-per-mile insurance is perfect for those whose average miles per year is under 10,000
- Some companies specialize in pay-per-mile insurance, and there are also programs available from standard policy insurers
If your average miles driven per year is less than 10,000, pay-per-mile insurance may be what you’re looking for in coverage. It’s simple enough: You go, and your rates are calculated by how many miles you drive that month.
If you don’t drive that often or feel like shaking up your automobile insurance policy, keep reading to learn more about pay-per-mile insurance.
Ready to start comparing pay-per-mile auto insurance quotes? Enter your ZIP code to find a pay-per-mile auto insurance company in your area.
What is pay-per-mile car insurance?
Pay-per-mile insurance is exactly what it sells itself as: You pay for coverage based on how many miles you drive. Affordable pay-per-mile auto insurance is excellent for those who don’t drive often.
How does pay per mile insurance work? Unlike similar programs that charge you based on some usage level, pay-per-mile charges you a flat rate based on how many miles you drive.
Pay-per-mile insurance includes your standard daily or monthly rate — depending on what policy type you have — multiplied by your rate per mile. This rate is usually around $.06 per mile.
If your average mileage per year is 1,000 miles, for example, you would pay $60 annually for driving — times your monthly rate. Flat monthly rates start at around $20 per month.
So, can anyone sign up for per-mile insurance? Just like standard policies, all are welcome to apply if there is an available program in your area.
Companies That Offer Pay-Per-Mile Car Insurance
Allstate’s pay-per-mile program is not the only option on the market. Other companies that offer coverage based include the low mileage, Milewise from Allstate and:
- Metromile
- Mile Auto
- Nationwide
- Esurance
- Hugo
- Noblr
These companies do not offer coverage in all 50 states. See if you are in their coverage maps using our free tool.
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How is pay-per-mile insurance different from pay-as-you-drive insurance?
There are usage-based insurance models that utilize various metrics to calculate your auto insurance rates — and your auto insurance quotes, too. What makes pay-per-mile insurance different from those, is that it only measures distance.
Pay-as-you-drive policies measure your safe driving.
Other telematics programs in auto insurance, according to the Insurance Information Institute, measure drivers’ speed, how hard they use their breaks, and other safe-driving practices.
At what mileage is pay-per-mile insurance worth it?
How much money can I save with pay-per-mile auto insurance? Well, particularly now in the pandemic, you could pay as little as $25-ish depending on the provider you chose.
The average mileage to keep under for a pay-per-mile insurance policy is 10,000. Otherwise, go with a standard auto insurance policy.
Working from home, remote work, etc., has become booming trends following stay-at-home orders. If you are one of these workers, you should consider telecommuting auto insurance, especially if you find yourself using your car only a few times a week.
Get Pay-Per-Mile Insurance
Pay-per-mile, a sister to other usage-based programs, doesn’t measure your driving habits when calculating your monthly rates. When you buy pay-per-mile auto insurance, you’re rewarded for staying off the road.
Learn how to keep your rates down with a pay-per-mile auto insurance provider. Enter your ZIP code to find an agent in your area.
Frequently Asked Questions: Pay-Per-Mile Insurance
Don’t see the answer to your question? Keep reading to learn more about pay-per-mile auto insurance rates and policies.
#1 – Do I need to buy new technology to use pay-per-mile insurance?
No. Some pay-per-mile providers offer their programs through apps and companies that provide a device. Mile Auto has an option that allows customers to submit photos on their odometer.
#2 – Does pay-per-mile insurance offer additional coverage?
Typical coverage options are offered to pay-per-mile customers. There may be options where drivers can find liability-only coverage and those with a full range of add-ons.
Allstate Milewise, for example, offers accident forgiveness and car replacement to its customers.
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