Metromile Review: Pay As You Go Car Insurance – Pay Per Mile

Metromile Review: Pay As You Go Car Insurance – Pay Per Mile

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One frustrating thing about car insurance is that it’s the same price no matter how much you drive. Sure, that’s great for people driving loads of miles each year, but what about people who don’t drive that much? Fortunately, Metromile has created pay as you go car insurance. You only pay for however many miles you drive.

That’s awesome! For everyone else who drives a ton, there’s still traditional car insurance.

Metromile pay per mile insurance -- pay as you go insurance
Metromile Pay Per Mile Insurance

Save Money On Car Insurance With Metromile

What Is Pay As You Go Car Insurance?

The concept of pay as you go insurance has been around for at least a decade. It’s also known as pay per mile insurance.

Before Metromile launched this idea, you had to pay the same amount of money for car insurance whether you drove no miles or 100,000 per year. Even if your car just sat in your garage for months, you’d pay the same amount as someone else driving it every day on a road trip.

Isn’t that terrible for low-mile drivers? It is!

Research has found that the more miles you drive, the more likely you are to get in a collision. So why does everyone have to pay the same amount?

That’s simply because the normal car insurance contract hasn’t changed for decades. Until now.

So, if you’re a low-mileage driver, you should really get pay as you go insurance.

Is Pay As You Go Car Insurance For Everyone?

No, it’s not. In fact, we calculated the breakeven for the most well-known pay as you go car insurance company on the market currently: Metromile. If you’re driving under 10,000 miles per year, you should check your rate for free to see how much you can save on car insurance.

That’s it.

10,000 miles per day is around 27 miles per day, or 330 miles per month. If you’re under these two numbers, then you should absolutely consider Metromile.

The average car insurance premium is around $1,300. Metromile nearly halves it.

What Is Metromile? How Does It Work?

Metromile was started by David Freidberg and Steve Pretre in 2011 and to date has had more than $400M in venture capital and other sources of funding. There’s been a lot of research in academic journals about pay as you go insurance. It has just taken until this decade to implement it. Below are the venture capital investors.

Metromile Investors
Metromile Investors

Metromile says that their drivers save $600 on average from the insurance they’ve had before.

Metromile Savings By Number Of Miles Driven With Pay As You go Car Insurance
Metromile Savings By Number Of Miles Driven With Pay As You go Car Insurance

How Much Can You Save With Metromile?

There are two charges that come into play with pay as you go car insurance.

The first charge is the base cost, which is fixed.

The second charge is the per-mile cost, which is variable.

There are three deductible options: $250, $500, or $1,000. You can choose any that is good for you.

Metromile Insurance Cost Explained
Metromile Insurance Cost Explained

How Do You Get A Quote With Metromile?

You can request a quote for free in less than 5 minutes and see how much you can save. Based on your average number of miles driven, you’ll be able to see how much you can save with pay as you go car insurance.

The form is easy to fill out and can all be done online or on your phone.

Save Money On Car Insurance With Metromile

How Does Metromile Track Your Miles?

Metromile sends you an item to put into your car that tracks the amount of miles you’re driving. If you have a car made after 1996, you’ll have something called a OBDII port.

You can see all your trips in the Metromile app and see the total times and best times to travel to work or run errands.

The technology didn’t really exist before this to track your miles — that’s why pay as you go car insurance has only recently taken on a surge.

How Does Metromile Measure Miles Driven? Pay as you go car insurance
How Does Metromile Measure Miles Driven?

Save Money On Car Insurance With Metromile

What States Is Metromile Available In?

For whatever reason, there is a separate insurance commission in each state, so Metromile is going through the process of applying to each one eventually. They have started with the states with the most amount of drivers to get pay as you go car insurance to everyone sooner.

  • California
  • Illinois
  • New Jersey
  • Oregon
  • Pennsylvannia
  • Virginia
  • Washington

Is There A Discount For A Second Car?

If you’re applying through Metromile with 2 cars at the same time, you’ll atutomatically get a discount. If you already have a vehicle and are going to get a second policy in your family, you can send them a message or give them a call and they’ll update the discount manually.

File Claims From The App

Start A Claim With Metromile Through Mobile
Start A Claim With Metromile Through Mobile

Metromile offers a 24/7 team to help assist your claims so you can get back on the road faster.

Just because it’s a new kind of insurance doesn’t mean you don’t get all the perks you’re used to. Pay as you go car insurance with Metromile is tech-savvy, easy to use, and just like your old car insurance — except you’ll pay much less if you drive under 10,000 miles per year.

Claims are super easy. Choose from three kinds right on your phone.
Claims are super easy with Metromile. Choose from three kinds right on your phone.
Claims steps with Metromile
Claims steps with Metromile

Extra Benefits For Metromile Users

Ever forget where you parked? Metromile pinpoints that to a direct point on the app.

Get street cleaning and sweeping alerts so you don't get fined!
Get street cleaning and sweeping alerts so you don’t get fined!

You also get free sweep sweeping alerts in Chicago, Los Angeles, San Diego, and San Fransisco. If you’ve ever parked in those cities, you’ll realize how confusing those rules are and how easy it is to get a fine!

Don’t worry, more cities are coming for automatic street sweeping alerts.

Metromile trips on the app
Metromile trips on the app

You’ll also get a report of all your trips. You can see what times are the best to leave for work and which routes take the shortest time and mileage.

Metromile claims - Pay as you go car insurance or pay per mile
Metromile claims in app

You’ll also get easy diagnostics for your car for free. No more paying money to go to the autoshop and check your car’s software.

What About Road Trips For Pay As You Go Car Insurance?

You’re only charged for 250 miles per day on Metromile insurance, so you can drive a ton one day and not pay any extra insurance! If you’re located in New Jersey, you’re currently capped at 150 miles instead of 250.

What If My Insurance Hasn’t Expired Yet?

You can try Metromile risk-free. They don’t charge cancellation fees and you can get a quote from them for free.

Metromile Privacy

Metromile is an insurance company and promises not to sell GPS or other kinds of data.

You should also know that insurance companies are usually the ones that buy data from other people in order to assess safety and riskiness from drivers. They can get that data directly from you by seeing how many miles you’re driving now.

Pay As You Go Insurance Helps The Environment

If you have to pay for every mile of insurance, you’re more likely to drive less.

Even though the charge per mile is low, it still eats at you internally.

Save Money On Car Insurance With Metromile

How to save up to $600 on average when you stop subsidizing other drives who drive more than you. #carinsurance #savemoney #cheapercarinsurance #personalfinance #money

Author: Olivia

Olivia worked in finance and wants you to learn the secrets of financial independence. She believes there are so many ways to monetize your life and make money doing the things you're already doing because so many companies offer free money.

The average savings account rate is 0.1%. The big banks have incredibly low savings accounts rates. CIT Bank offers a 1.75% savings account. You can open an account with just $100 and no monthly fees or charge . Tired of being charged fees and getting peanuts in interest at your current bank? Open a CIT Bank savings account in less than 15 minutes online.

If you have a car, Rideshare apps allow you to pick a direction you want to go twice a day, so you can get extra money going somewhere you were driving to anyway at least twice a day. Get a $300 sign-up bonus with Lyft.

One of my favorite ways ways of monetizing my life is via credit card bonuses with cards that give you cashback or rewards. Check out our review of the Chase Sapphire cards, which give you at least $500 in cash or $625 in travel credit.

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Author: Olivia

Olivia worked in finance and wants you to learn the secrets of financial independence. She believes there are so many ways to monetize your life and make money doing the things you're already doing because so many companies offer free money.

The average savings account rate is 0.1%. The big banks have incredibly low savings accounts rates. CIT Bank offers a 1.75% savings account. You can open an account with just $100 and no monthly fees or charge . Tired of being charged fees and getting peanuts in interest at your current bank? Open a CIT Bank savings account in less than 15 minutes online.

If you have a car, Rideshare apps allow you to pick a direction you want to go twice a day, so you can get extra money going somewhere you were driving to anyway at least twice a day. Get a $300 sign-up bonus with Lyft.

One of my favorite ways ways of monetizing my life is via credit card bonuses with cards that give you cashback or rewards. Check out our review of the Chase Sapphire cards, which give you at least $500 in cash or $625 in travel credit.