This post is brought to you by Metromile. All opinions are our own.
Insurance is getting smarter. No longer is the one-size-fits-all manner of buying auto insurance the only way to cover yourself. Now Metromile offers per-mile insurance for drivers who drive less than ten thousands miles per year. In fact, they claim low-mileage drivers like myself can save $500 a year on my insurance.
Now low-mileage drivers pay for what they use instead of paying higher premiums that are used to subsidize other drivers. It’s strictly based on the number of miles you drive so the less you drive, the less you pay. For people like me who traded an hour-long commute for a work-from-home job, it just makes sense.
Metromile offers this new modern insurance solution for residents in Oregon, Virginia, Pennsylvania, California, Illinois, and Washington, but they’re expanding.
How Metromile Pay-Per-Mile Insurance Works
Metromile charges a fee per mile plus a monthly base rate. Your rate is determined by several factors – age, credit history (depending on the state), vehicle, driver history, and prior insurance (state specific). But as an example, if you base rate is $30 and your mileage rate is 3.2 cents and you drive 500 miles in one month, your total fee would be $46. But this doesn’t mean you can’t go on that road trip you’ve always wanted to experience. You won’t be charged for miles over 150 a day (250 in Washington).
You select the coverage is right for you. Choose bodily injury, property damage, uninsured and underinsured motorist coverage, collision, comprehensive, personal injury protection/medical payments coverage, rental reimbursement, emergency roadside assistance, and the size of your deductible ($250, $500, $1000).
How does Metromile know how far you’ve driven?
Metromile Pulse, a wireless device that transmits the miles you’ve driven, plugs into the car’s diagnostic port (OBD-II port – older cars don’t have this port – it’s usually located on the left-hand side of the steering column – they started implementing them in cars around 1996). This little device only sends info on the mileage, and not how fast you’re driving or any of your other driving habits.
Drivers can take advantage of the data the Metromile Pulse is gathering with their free smartphone app. Use it to check your trips and find the best shortest routes that save you money. Optimize your gas usage and know exactly when it’s time to top off your tank. Monitor your car’s health and more importantly, decode your check engine light. Plus it can help you locate your car and avoid street sweeping tickets by signing up for alerts (this features is currently only available in San Francisco, San Diego, Los Angeles, and Chicago).
But what if your needs change and full coverage insurance is in your future? You won’t be penalized for going over ten thousand miles – you’ll be charged your standard base rate and mileage – but if you decide you need a full coverage plan, they’ve got that available as well. They also offer multiple vehicle discounts that can save you money on your base rate as well as your per-mile rate.
Metromile promises best-in-class, non-stop customer service, and 24/7 claims teams and they’re underwritten by insurers in the National General Insurance Group.
Metromile Test Drive
Not sure if you’re ready for per-mile insurance? You can take it for a “test drive” by requesting a free Tag device. Sign up for a Metromile account and they’ll send you the device. You’ll be able to see you driving patterns and if this modern insurance is right for you.
Would a pay-per-mile insurance work for you?
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