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All About Car Insurance By The Mile

January 3, 2022

In the modern world, owning an automobile is associated with many additional expenses. Besides the monthly fuel cost, you should take into account insurance costs. Owning a vehicle automatically means owning an insurance policy. There are different types of insurance policies. Due to the big variety of options, and competition, each company tries to offer the best policy terms to its customers.

Nowadays, it is considered that car insurance by the mile is the cheapest way to get your car secured. The insurance sometimes is also referred to as pay as you drive, but they are different kinds of insurances.

In this blog we will discuss those two types of insurances: pay per mile and pay as you drive. We will explore in detail what those insurances offer to drivers, which states have the type of insurance, who offers pay per mile auto insurance, and compare mentioned two types of insurances. I’m sure after reading the blog, you will have a clear picture of the topic. So, let’s start exploring by clarifying what the term “Pay per mile” means.

What does the pay per mile insurance mean and which states have pay per mile car insurance?

If you are already an experienced driver, you would know that owning a vehicle requests spending additional money, except the initial cost paid during the purchase. Besides the fuel, gas, or repair costs, we should take into account insurance costs.

On average, the full coverage insurance cost is around 1,700$ per year. You will agree that the cost is not too little, and any individual tries to save money. For that reason, while talking about saving money, we should definitely mention pay per mile car insurance.

The insurance lets you pay upon covered mileage. The concept is simple, the less you drive, the less you pay! You might wonder what the rationale of the policy is. The issue is that insurance cost is determined by the chance of expected risk. Logically, the less you drive, there is less chance to get in an accident.

How is the cost calculated for pay per mile insurance?

Pay per mile insurance

Pay by miles car insurance cost includes the base rate and per-mile fee. The base rate is determined upon analyzing the driver’s age, driving record, type of car, year of the release, manufacturer, automobile model, occupation, location, etc. The minimum base rate can be above 20$, depending on the result of analyzing already mentioned factors.
Generally, the per-mile fee is a few cents, about 4 cents. Hence, if you drive 300 miles per month it means that you will be charged 12$, in addition to the base rate of 20$. All in all, your monthly insurance cost can be around 32$ including the minimum base rate of 20$.

For which individuals is the pay per mile insurance affordable?

According to Metromile, 65% of drivers overpay for auto insurance. The pay per mile insurance is the cheapest and affordable option for those individuals who don’t use vehicles frequently, work remotely, retired, have another automobile that you use frequently, or drive short distances.

In general, it is considered that a driver covers about 12,000 miles per year. Hence, if you drive much less than 12,000 miles, then pay per mile insurance is affordable and cheap for you. But in case you drive about 12.000 miles per year, or even more, then that option can be more expensive than traditional one.

Which states have pay per mile insurance?

Currently, the number of states where you can use the option of pay per mile depends on the insurance companies that operate in certain states. Below we will review companies that offer pay as you drive insurance. Until that, notably, Nationwide SmartMiles is the insurance company that operates in 41 States.

Here is the list of state abbreviation, where you can use the service: AR, AZ, CO, CT, DC, FL, GA, IA, ID, IL, IN, KS, KY, MD, ME, MI, MN, MO, MS, MT, ND, NE, NH, NM, NV, NY, OH, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY

Who offers pay per mile auto insurance?

I’m sure after reading all the above-mentioned information, you want to know is the source of where to get the policy! There are four high-ranking insurance companies that offer pay by mile car insurance. So, let’s review and clarify whether the company is in the state of your residence or not?

Mile Auto

The insurance company operates in Arizona, Oregon, Illinois, and Georgia.


Offered insurance option is available in Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington.

Allstate Milewise

The company operates in the following states: Washington, Oregon, Idaho, Arizona, Texas, Florida, Illinois, Indiana, Ohio, West Virginia, Virginia, Pennsylvania, New Jersey, Delaware, Washington, D.C., and Massachusetts.

Nationwide SmartMiles

As you already know, the Nationwide SmartMiles is the insurance company offering pay by mile insurance in the widest area of the U.S.

Here is the list of state abbreviation: AR, AZ, CO, CT, DC, FL, GA, IA, ID, IL, IN, KS, KY, MD, ME, MI, MN, MO, MS, MT, ND, NE, NH, NM, NV, NY, OH, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY

What is pay as you drive insurance and how it differs from pay per mile policy?

What is pay as you drive?

As I’ve already mentioned in the beginning, sometimes pay per mile and pay as you drive car insurance, is associated with each other. Nonetheless, those two terms might seem very similar, there is still a difference between them. Let’s dive a bit deeper and explore the difference!

While choosing a pay per mile option, you pay only for the miles you drive. While purchasing the policy, you should provide the start odometer reading of your car and pay for what you plan to use. If you see that you are reaching planned mileage during the year, you can contact the insurance company. Upon the agreement you can top up your kilometers/miles. Of course, in that case, you will have to pay an additional mile fee.

Besides, while using the option, you have to install a telematics device and mobile application. Those devices will measure covered distance. Besides, they provide general information of your driving specifications. That way insurance companies can check provided information accordingly.

In case of choosing pay as you drive option, it considers how you drive, not just how many miles you cover. I guess now you know what is the main difference between car insurance by the mile, and pay as you drive options.

What do people do to decrease insurance costs?

People address unethical methods to commit insurance fraud. Namely, they alter mileage-related data in order to lie to insurers. For this purpose, they use mileage correction tools that are available in online stores. However, those tools are easily traceable. So, some people start using a Mileage blocker which is an extraordinary device that can stop the mileage recording process untraceably. It is for sale on our website. The point is that it is an ethical tool. We created it for testing and tuning purposes and we do not recommend illegal usage. What makes it special? How to install it properly?

A Mileage Blocker is superior to clocking and rewinding devices. We use superior-quality components to make sure that our module will offer flawless performance. If you need additional information, you can always contact the support team of the company.


All in all, nonetheless on the one hand insurance cost might seem quite high, there are alternative options such as pay per mile car insurance. By using the option, you can save hundreds of dollars for the annual insurance cost. As you saw, monthly insurance costs can be as low as 38$ depending on the frequency of using a vehicle.

Now you know what are the most popular insurance companies offering that kind of insurance. Hopefully, given information can help you to make a good decision upon choosing the insurance policy for your “best buddy”. Wish you good luck and a safe journey!

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