If you drive less than 10,000 miles a year, there’s no reason to pay the same insurance rates as someone commuting 50 miles daily. That’s why pay-per-mile car insurance is becoming the go-to solution for low-mileage drivers in 2025.
In this guide, we’ll break down how pay-per-mile insurance works, who it’s best for, and compare the top companies offering usage-based plans in the U.S. right now.
🚗 What Is Pay-Per-Mile Car Insurance?
Pay-per-mile insurance (also called usage-based insurance) charges you based on how much you actually drive—not just your age, location, or vehicle.
How It Works:
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You pay a low base monthly rate
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Plus a per-mile fee (usually a few cents)
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Your total bill = base rate + (miles driven × per-mile rate)
💡 Great for students, remote workers, retirees, or anyone with a short commute.
✅ Who Should Use Pay-Per-Mile Insurance?
Pay-per-mile insurance is ideal for:
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Drivers who commute less than 25 miles a day
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People who work from home or drive occasionally
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College students with limited vehicle use
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Seniors who only use their car for errands
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Second or backup cars not used regularly
If you drive under 8,000 miles/year, pay-per-mile plans can save you up to 40–60% compared to traditional policies.
🏆 Top Pay-Per-Mile Car Insurance Companies (2025)
1. Metromile
Best Overall for Pay-Per-Mile Coverage
Metromile is the original pay-per-mile insurer and still the most trusted name in the space.
✅ Base rates as low as $29/month
✅ Pay just a few cents per mile
✅ Tracks mileage with an app-connected device
✅ Roadside assistance + full coverage available
💡 Best for: Urban drivers and tech-savvy users
2. Nationwide SmartMiles®
Best for Customizable Coverage
Nationwide’s SmartMiles® program combines usage-based pricing with the backing of a traditional insurer.
✅ Real-time mileage tracking
✅ No penalty for occasional long trips
✅ Great for low-mileage drivers under 30
✅ Includes safe-driving rewards
💡 Best for: Drivers who want brand trust + pay-as-you-go pricing
3. Mile Auto
Best for Privacy-Focused Drivers
Mile Auto is a newer option that doesn’t use tracking devices or apps—just odometer photos.
✅ No app or GPS tracking
✅ Submit mileage monthly via text or email
✅ Ideal for privacy-conscious customers
✅ Flexible coverage options
💡 Best for: Drivers who want pay-per-mile without being tracked
4. Allstate Milewise®
Best for Daily Commuters with Predictable Use
Allstate’s Milewise® is a great option if you want a big-name provider offering true usage-based billing.
✅ Daily cap on charges to protect from long trips
✅ Simple plug-in device for tracking
✅ Premium updates in real-time via the app
💡 Best for: Commuters and Allstate customers looking to switch
5. Root Insurance
Best for Safe Drivers
While not strictly pay-per-mile, Root adjusts your premium based on how and how much you drive using mobile telematics.
✅ Personalized pricing after 2–4 weeks of tracking
✅ Major savings for safe, low-mileage drivers
✅ All mobile—no plug-ins needed
💡 Best for: Safe drivers who want aggressive rate cuts
📊 Sample Pricing Comparison (Based on 500 Miles/Month)
| Company | Base Rate | Per-Mile Rate | Est. Monthly Cost |
|---|---|---|---|
| Metromile | $29 | $0.06 | ~$59 |
| SmartMiles® | $35 | $0.05 | ~$60 |
| Mile Auto | $33 | $0.06 | ~$63 |
| Milewise® | $36 | $0.07 | ~$71 |
| Root | Variable | Usage-based | ~$65–$90 |
Prices vary by age, location, and driving record.
📲 How to Sign Up for Pay-Per-Mile Insurance (Step-by-Step)
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Choose your preferred provider (see list above)
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Visit their official website or app
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Enter ZIP code and basic info
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Select “low mileage” or “usage-based” pricing option
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Complete the quote and bind your policy online
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Set up the app, plug-in device, or odometer photo submission
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Start driving and saving
💡 You’ll often get real-time updates on usage and billing.
🛑 What to Watch Out For
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🚫 Driving a lot? Pay-per-mile might not save you money
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🚫 Skipping mileage updates (Mile Auto) can trigger billing issues
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🚫 Tampering with devices = automatic policy cancellation
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🚫 Some states (like NC and HI) don’t allow all telematics-based pricing
Final Thoughts: Pay Only for What You Use in 2025
If you don’t drive much, why pay full price for insurance? In 2025, low-mileage drivers have more options than ever to control their costs through pay-per-mile plans. Whether you want full digital tracking or a simple odometer check-in, these policies can offer real savings without sacrificing coverage.
✅ Drive less, save more
✅ Get personalized rates based on your habits
✅ Compare top providers like Metromile, SmartMiles®, and Allstate Milewise®
If your odometer doesn’t move much—your premium shouldn’t either.
