As a mother of four, I know that every dollar counts when managing a household budget. One of the biggest expenses we face is car insurance, and my mom was feeling frustrated paying high premiums even though she doesn’t drive that often.

She mainly uses her car for quick grocery runs, church, and occasional family visits, but she was still paying the same flat monthly rate as someone who drives every day. That’s when we started looking into pay-per-mile car insurance, and it turned out to be the perfect solution!

If you don’t drive much, this guide will help you:
✅ Understand how pay-per-mile insurance works
✅ Find the best providers with the lowest rates
✅ Decide if it’s the right choice for you

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What Is Pay-Per-Mile Car Insurance?

Pay-per-mile car insurance is a usage-based policy where your monthly premium is based on how many miles you actually drive instead of a fixed amount.

📌 How It Works:
1️⃣ Base Monthly Rate – A fixed fee for basic coverage.
2️⃣ Per-Mile Charge – A small fee (usually a few cents per mile) for every mile driven.
3️⃣ Lower Bills for Low-Mileage Drivers – The less you drive, the less you pay!

🚗 Example:

• Base rate: $30/month
• Per-mile charge: $0.05 per mile
• Monthly mileage: 500 miles
• Total monthly cost: $30 + ($0.05 × 500) = $55/month

📌 Best For:
✅ Stay-at-home moms who only drive locally
✅ Remote workers who don’t commute daily
✅ Retirees or seniors who drive occasionally
✅ Second car owners who don’t use their vehicle often

🚗 Example: My mom only drives about 400 miles per month, so switching to pay-per-mile insurance saved her over $500 per year!

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Best Pay-Per-Mile Car Insurance Companies

We compared multiple pay-per-mile insurance providers to find the best options for low-mileage drivers.

Insurance Company	Best For	Base Monthly Cost	Per-Mile Charge
Metromile	Best overall pay-per-mile insurance	$30 – $50	$0.05 – $0.10 per mile
Allstate Milewise	Best for flexible monthly plans	$25 – $45	$0.04 – $0.08 per mile
Nationwide SmartMiles	Best for occasional drivers	$30 – $55	$0.06 – $0.12 per mile
Liberty Mutual ByMile	Best for bundling with home insurance	$35 – $60	$0.05 – $0.09 per mile
Mile Auto	Best for privacy (no tracking app)	$30 – $50	$0.06 – $0.11 per mile

📌 Quick Breakdown:

• Metromile: Best overall for affordable pay-per-mile coverage.
• Allstate Milewise: Best if you want monthly flexibility.
• Nationwide SmartMiles: Ideal for occasional drivers who still want full coverage.
• Liberty Mutual ByMile: Best for bundling with home insurance for extra savings.
• Mile Auto: Best for drivers who don’t want tracking devices—instead, you submit odometer readings manually.

🚗 Example: My mom compared Metromile and Allstate Milewise, and Metromile was $15/month cheaper based on her driving habits.

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How to Get the Cheapest Pay-Per-Mile Car Insurance

1. Estimate Your Monthly Mileage 🚗

Before switching, calculate how much you drive per month.

📌 Best for drivers who drive:
✔️ Under 10,000 miles per year
✔️ Less than 833 miles per month

🚗 Example: My mom only drives about 400 miles per month, so she qualified for lower rates with Metromile.

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2. Compare Multiple Pay-Per-Mile Insurance Quotes 💰

Since rates vary by provider, comparing at least 3-5 companies ensures you get the best deal.

📌 Best Websites for Comparing Pay-Per-Mile Quotes:

• The Zebra
• NerdWallet
• Policygenius

🚗 Example: My mom used The Zebra to compare pay-per-mile policies and found that Metromile was $20/month cheaper than Nationwide SmartMiles.

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3. Take Advantage of Low-Mileage Discounts 🚦

Some traditional insurance companies offer low-mileage discounts if you drive under 7,500 miles per year.

📌 Best Companies for Low-Mileage Discounts:

• State Farm Drive Safe & Save
• Progressive Snapshot
• GEICO Low Mileage Discount

🚗 Example: Before switching to Metromile, my mom checked State Farm’s low-mileage discount but still found pay-per-mile was cheaper.

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4. Choose Liability-Only Coverage If You Have an Older Car 🚗

If your car is older than 10 years and not financed, switching to liability-only insurance can lower your base monthly cost.

📌 Example: My mom’s car was 10 years old, so she removed collision coverage and saved $20/month.

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5. Consider Pay-Per-Mile Insurance for a Second Car 🚗

If you have a second car that you rarely use, switching it to pay-per-mile insurance can save hundreds of dollars per year.

🚗 Example: My mom’s husband has a convertible he only drives in the summer, so they switched it to pay-as-you-go coverage, cutting their insurance bill in half.

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Pros and Cons of Pay-Per-Mile Car Insurance

✔️ Pros:
✅ Cheaper for low-mileage drivers.
✅ More control over monthly costs.
✅ Great for seniors, retirees, and remote workers.
✅ Flexible—you only pay for what you use.

❌ Cons:
🚨 Not ideal for high-mileage drivers (over 10,000 miles/year).
🚨 Some providers require a tracking device (Metromile, Allstate Milewise).
🚨 Rates may vary monthly if your mileage changes.

📌 Bottom Line: If you drive less than 833 miles per month, pay-as-you-go insurance can save you hundreds of dollars per year.

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Final Thoughts: How My Mom Saved Over $500 With Pay-Per-Mile Insurance

After comparing multiple quotes, my mom chose Metromile because:
✅ It had the cheapest base rate for her mileage.
✅ It automatically adjusted her monthly bill based on miles driven.
✅ She saved over $500 per year compared to traditional insurance.

💰 Final Cost: $30 base rate + $0.05 per mile = $50/month (instead of $95)

🚗 Bottom Line: If you don’t drive much, the best way to cut car insurance costs is to:
✔️ Estimate your mileage and compare quotes.
✔️ Look for low-mileage discounts on traditional policies.
✔️ Consider liability-only coverage if your car is older.
✔️ Switch a second car to pay-per-mile insurance.

By switching to pay-per-mile insurance, my mom cut her insurance bill in half—and you can too! 🚗💰