Is Car Insurance Tax Deductible?

By now, you’re probably well (if not painfully) aware that it’s tax season. And while you’re busy crunching numbers and tracking down receipts, you’re likely looking for every deduction possible to help maximize your refund. So can you count car insurance as one of your tax-deductible expenses? The answer of course is: it depends.

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When You Can (and Should) Deduct Car Costs From Your Taxes

Let’s start with the positive side of things: scenarios in which car insurance payments can totally count as tax-deductible costs:

  • If you’re self-employed and use your car for business-related purposes. Great news! If you’re self-employed and use your car for business purposes, you might just be able to deduct a portion of your insurance premium. For example, if you’re a contractor and you use your truck to carry supplies to and from job sites, you can likely write off your full insurance premium, plus the cost of other expenses like gas. The catch here is that your vehicle has to primarily be used for explicit business tasks; using it to commute to and from the office isn’t enough to justify a business expense.
  • If you’re an employee and your employer doesn’t plan to reimburse you for the money you’ve spent on business uses of your vehicle. You could be eligible to write off your car costs as an employee if your job requires you to conduct business while driving or if you use your car to travel for work-related events or meetings.

In either case, here’s how to know if your car use qualifies for deductions: The costs related to your vehicle have to total more than 2% of your adjusted gross income (AGI). So, for example, if your adjusted gross income for the year is $50,000, any costs you plan to claim that are related to that vehicle (like insurance, gas, etc.) have to exceed $1,000 (i.e. 2% of $50,000).

When You Can’t (and Shouldn’t) Deduct Car Costs From Your Taxes

  • Your car is for personal use only (or your business-related driving costs are less than 2% of your AGI). So if your adjusted gross income for the year is $50,000, you won’t be able to claim costs if they’re $1,000 or under.

When It’s a Maybe

  • You use your vehicle for both business and personal reasons. If you’re using your car for both business and pleasure (think: Lyft or Uber drivers, for examples), you can only write off the cost of your insurance up to the proportion of time it’s used for business. So, for example, if you’re using it to work as a rideshare driver 25% of the time, and driving around town for personal reasons the other 75% of the time, you can only list 25% of the insurance premium cost on your taxes.
  • Your car was stolen or deemed a “total loss” (i.e. it was damaged to the point of being permanently un-drivable). Whether your car is for personal or business use, if it’s stolen or irreparably damaged, you might be able to claim loss deductions. The stipulations:
      1. You have to file a car insurance claim.
      2. The accident couldn’t have been due to your negligence.
      3. Your insurance company can’t reimburse the full cost of your loss (but if the damage exceeds the policy limits, you may be able to deduct the difference as well as your insurance deductible cost.
      4. The costs are more than $100 and over 10% of your AGI.

Regardless of whether your car costs are deductible, it’s always a smart idea to pay only for what you need — that’s why Metromile makes so much sense for every type of driver out there. Pay-per-mile insurance costs less because it’s based on how many miles you drive. If you spend less time behind the wheel, you spend less money on insurance, period. Get your personalized quote right now and see how much you could be saving.

The Complete Guide to Researching and Buying Car Insurance

You may not associate shopping for car insurance with a high-stakes game of blackjack, but the truth is, both are a gamble. Picking the right policy is a game of risk: insurance carriers are constantly managing and mitigating unpredictable circumstances while policyholders are the ones actually living through the daily uncertainties of treacherous traffic jams, storms, and other hazardous road conditions.

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Life is risky enough; there’s no need to up the ante and play games when it comes to insurance coverage. That’s why we’ve created this guide to walk you through researching and buying the best car insurance policy for you.

Things To Think About Before You Research Plans

Before you even start the research process, taking the time to think through these factors can save you time, money, and headaches down the road:

  • Factors that will affect your insurance cost and your overall insurability. How many tickets have you received lately? What’s your credit score? Is your car banged up? Have a teen driver in the family? All of these factors can and do affect your cost and insurability, so take stock of the important stuff and be prepared for it to shape your research.
  • What’s your budget? Be realistic about what you can spend per month by creating a spending spreadsheet that clearly indicates where your money’s going, what’s a non-negotiable expense, and what could potentially get cut so you can get the best coverage possible.
  • How do you use your car and how often do you use it? Do you commute hundreds of miles each week, or does your car sit parked on the street most days? The amount you’re actually using your vehicle-and what you’re using it for-should factor into your decision around how much to spend.
  • What type of coverages are most important to you? There’s no one-size-fits-all plan for every person; depending on where you live, what kinds of other insurance you have, the kind of car you drive, and more, the type of plan you choose will vary.

How to Choose the Best Carrier for You

Now that you’ve got your personal factors sorted out, it’s time to start comparing carriers. Here’s how to find the right one for you:

  • Look for a reliable insurer. It’s important to go with a company that’s credible. Check your state’s insurance department website and read consumer reviews to get a sense of who’s legit. Friends and family are also great sources of information and experience.
  • Offers the coverages you need. Not every insurer offers every type of plan. That’s why getting clear on your non-negotiables upfront is a critical time-saving step; if a company doesn’t offer the plan you need, move on.
  • Compare policies and insurers. Take the time to visit different insurers’ websites and call for more information. Take solid notes and consider creating a spreadsheet that lists each insurer’s quotes. Comparing will help you find the best deal, so be sure to run the numbers on at least four or five different carriers and policies to have a bigger pool of contenders.

Buying Your Car Insurance Policy: Things to Look Out For

One more major step in the buying process: be sure you’re covering all the legal bases and best practices.

  • State Minimums. Each state has its own list of minimum insurance requirements, so be sure to check yours before signing up for a plan.
  • Coverage recommendations. There are some general rules of thumb to follow when it comes to purchasing a policy, according to insurance experts. Do a bit of digging and talk to the pros at each company you’re considering signing up with.

Remember: do your research, check your current coverages, and compare all your options before making a decision on a new car insurance policy. If you have any questions we are always happy to help at Metromile. Feel free to give us a call or get a quick quote now.


Michelle Konstantinovsky is a San Francisco-based journalist/writer/editor and UC Berkeley Graduate School of Journalism alumna. She’s written extensively on health, body image, entertainment, lifestyle, design, and tech for outlets like Cosmopolitan, Harper’s Bazaar, Marie Claire, Teen Vogue, O: The Oprah Magazine, Seventeen, and a whole lot more. She’s also a contributing editor at Fitbit and the social media director at California Home + Design Magazine. She is an avid admirer of shiny objects, manatees, and preteen entertainment.

When You Should File a Claim… and When You Shouldn’t

It’s an inevitable risk of driving that no one likes to think about but many have to face: a car accident. Whether you’re behind the wheel or riding as a passenger, accidents can stressful, scary, and confusing. No matter who’s at fault, collisions can bring up a lot of questions, and it can be baffling to figure out if, when, and how to involve your insurance carrier. Luckily, there are simple guidelines that can help guide you through the decision-making process.

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When You Should File a Claim

Trying to handle an accident on your own can be risky. Even if the other party involved seems nice enough and offers to pay for damages out of pocket, there’s no way to verify their personal information or accountability without the intervention of an insurance carrier.

In many scenarios, filing a claim will go a long way in protecting you and your wallet. Before you make any decisions, be sure to read and have a solid understanding of your policy-many policies state that you must notify the insurance company of any issues that may lead to a potential claim.

That said, you should always file a claim in these situations:

  • You injure someone. Even if the person says they feel fine or that they’ll settle the situation privately, it’s important to notify your insurance carrier. The injuries may be far more serious than you realize, and can result in big medical bills down the road.
  • You damage someone else’s car. Damage can sometimes be much more extensive than it seems at first glance-without involving your insurer, you could be on the hook for sky-high costs.
  • It’s not immediately clear who’s at fault. If there’s any question at all about who’s to blame for the accident, then a claim is necessary. That way your insurance company can deal with the other party’s insurance company and save you the headache of divvying up costs.
  • You accidentally do major damage to your own car.Any kind of accident, vandalization, or weather-related damage that results in hefty repair or medical bills requires a claim – even if no one else was involved (or you don’t know who the culprit was).
  • You’ve been hit and run. Even if you don’t know the driver responsible, you can still file a claim with your own insurance company in the event of a hit and run. Depending on the type of coverage you have, you may qualify for some help with repair and medical costs, even if the other driver isn’t found.

When You Shouldn’t File a Claim

  • When there’s little to no damage to the other person’s car. If you just barely tap another car while attempting to parallel park, it’s probably not necessary to file a claim, but if you leave any mark whatsoever, you’ll likely need to trade personal information with the other party.
  • When you can afford to fix it yourself. If you back into a pole or hit your own garage door, it’s unfortunate, but not necessarily claim-worthy. If you’re totally sure the minor ding won’t result in any lasting issues, you’re probably better off paying the money out of pocket to avoid an increase in your coverage rate.

The bottom line is that It’s risky to handle an accident on your own. Your insurance company is there to have your back in situations just like these. Ready to switch to a more affordable carrier? Metromile may be the perfect fit- get a free quote today and see how much you could be saving.


Michelle Konstantinovsky is a San Francisco-based journalist/writer/editor and UC Berkeley Graduate School of Journalism alumna. She’s written extensively on health, body image, entertainment, lifestyle, design, and tech for outlets like Cosmopolitan, Harper’s Bazaar, Marie Claire, Teen Vogue, O: The Oprah Magazine, Seventeen, and a whole lot more. She’s also a contributing editor at Fitbit and the social media director at California Home + Design Magazine. She is an avid admirer of shiny objects, manatees, and preteen entertainment.

What is Full Coverage?

When it comes to insurance it seems like everyone is searching for the holy grail of “Full Coverage.” But what does that even mean…and does it even exist?

Spoiler alert: There’s actually no such thing as “Full Coverage” in the sense that no plan you choose will cover every possible scenario under the sun. The phrase “Full Coverage” typically refers to a combination of coverages meant to protect you and your vehicle. But the magical plan many people refer to as “Full Coverage” is really just a myth.

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Let’s break down the facts so you can truly understand what your auto insurance policy covers-and what it doesn’t.

What is “Full Coverage” anyway?

There’s no single plan you can request that will provide “Full Coverage.” If you talk to your insurer about getting full coverage, you’re likely discussing a combination that includes the following:

  • Liability or no-fault insurance that’s required by your state. This covers any bodily injury and property damages to others if you cause an accident.
  • Collision coverage that pays for damages that affect your vehicle in an accident.
  • Comprehensive coverage for things like vandalism, theft, and other damages that aren’t the result of an accident.

Even with those three standard components, however, the details and amount of protection you actually get from a “Full Coverage” combo will vary depending on your insurance carrier, so it’s always important to read the fine print of your policy.

What “Full Coverage” Doesn’t Cover

But before you feel secure thinking “Full Coverage” has you covered from every angle, consider the many important things this combination of coverage doesn’t cover:

  1. Medical payments: You’ll need an additional type of coverage in order to pay for any post-accident medical expenses for you and your passengers, regardless of who was at fault for the incident. This type of coverage may also help pay for any expenses that exceed your health insurance limits.
  2. Uninsured/underinsured motorists (UM/UIM): If you get into an accident with an uninsured or underinsured driver, UM/UIM coverage is the only way to receive payments that they’re responsible for but can’t deliver because of their coverage status.
  3. Emergency road services: Otherwise known as roadside assistance or towing and labor, emergency road service coverage helps pay for unpredictable emergencies like flat tire changes or a battery jump-start.
  4. Customized parts and equipment: If you’re hoping to deck your car out with the latest technology or special add-ons, you’ll want customized parts and equipment coverage to help cover the costs.
  5. Rental cars: If you need to rely on a replacement vehicle in the event of an accident, rental car insurance is the only way to get that cost covered.

Determining Which Coverage is Right for You

If all this info is overwhelming, consider this: there’s no one-size-fits-all comprehensive combination of plans. Your specific needs as a driver are unique and the type of coverage you choose will depend on a lot of personal factors. When deciding on the right coverage, think about these key pieces of info and then can make an informed decision from there:

  • What type of car you have and how new it is
  • The quality and limits of your health insurance
  • Where your car is garaged
  • Your budget
  • Your driving behavior

Remember, there’s no such thing as “Full Coverage” and the best way to understand and know what your insurance policy will cover is to carefully read the fine print. Have specific questions about your Metromile policy? Our team of licensed insurance specialists is standing by, happy to help. Just give us a call at (888) 244-1702. If you aren’t a Metromile customer and want to see your savings, get a quick quote now.


Michelle Konstantinovsky is a San Francisco-based journalist/writer/editor and UC Berkeley Graduate School of Journalism alumna. She’s written extensively on health, body image, entertainment, lifestyle, design, and tech for outlets like Cosmopolitan, Harper’s Bazaar, Marie Claire, Teen Vogue, O: The Oprah Magazine, Seventeen, and a whole lot more. She’s also a contributing editor at Fitbit and the social media director at California Home + Design Magazine. She is an avid admirer of shiny objects, manatees, and preteen entertainment.

8 Questions to Ask Before Purchasing a New Car Insurance Policy

Whether you’re buying your first car or fifth, car insurance is non-negotiable. Besides protecting you, your car insurance will also protect anyone else who is involved in a collision with you. But the world or car insurance can be murky, and it can be difficult to understand the nuances of different providers and coverage plans.

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To save you some time, we’ve compiled a list of 8 questions to ask yourself before you buy car insurance (or switch car insurance!). Once you’ve answered these 8 questions, you’ll be well on your way to making a smarter and more well-informed decision about the car insurance policy that’s right for you!

    1. What kind of coverage do I need? To start, you will need the minimum coverage required by law in your state. Since this varies by state, check out a list here to see what kind of coverage is required in your state of residence. Most states only require liability insurance, which covers the costs of anyone who gets injured or killed in a car accident caused by you, plus damage to their vehicle, property damage, and legal fees. However, some states require additional coverage beyond liability insurance. Even if you live in a state that doesn’t require it by law, here are some other coverage plans typically offered by car insurance companies:

    • Collision: This kind of plan covers damages to your car in the event of an accident, regardless of who caused the damage. You will still need to front the money for the deductible, however, most people who have newer cars tend to go for this option because the amount you will receive back is based on the value of the car, and the payout will be much higher on a newer vehicle.
    • Comprehensive: This type of plan covers all damages to your car, including non-collision related damage. With a comprehensive insurance policy, your vehicle is covered if there are damages due to fire, vandalism, acts of nature, and theft. With this type of policy, however, comes a price tag. As with the collision coverage, most people with newer vehicles and/or leased vehicles tend to purchase this type of policy because the deductible vs. payout ratio is greater! Be sure to check the value of your car every year to reevaluate if comprehensive or collision coverage is the right decision for you.
    • Uninsured and underinsured motorist protection: This coverage option is less expensive than collision or comprehensive and covers the cost of your car repairs if an uninsured or underinsured driver hits you. With this option, there’s no deductible, but there’s also a limit on how much you’ll be able to collect (usually about $3,500).
    • Personal injury protection: This plan is pretty self-explanatory – it’s right there in the name! This type of plan covers medical bills and loss of wages to you or your passengers if someone hits you. If you’re injured while riding as a passenger in someone else’s car, it will cover the expenses related to that as well.

    2. How much do I drive? The answer to this question is very important, because you could very well be overpaying where you don’t need to. If you’re a city-dweller who mostly takes public transportation, or even if you just have a second car that you don’t drive very often, signing up for a policy with Metromile could save you big bucks. Metromile’s policy is pay-per-mile, so the less you drive, the less you pay. Simple as that!

    3. What’s my risk assessment? This is not meant to be a scary question, we promise. A “risk assessment” is simply how the annual rate that you will pay is determined by the insurance company – as in, how likely it will be that you’ll file a claim based on many data points gathered. Have you gotten a lot of speeding tickets, been in a few fender benders, or live in an area where car theft is prevalent? Your risk assessment will be higher and you’ll pay more. Be sure to do your research and shop around to see which company will give you the best rate based on your risk assessment.

    4. Who will be covered with the policy? Every insurance company and state handles this a bit differently, so be sure to understand what your coverage will look like before making any decisions. Try to think through every possible scenario, i.e. a friend borrows your car and hits someone, your 16 year old (who is still learning to drive) gets in an accident, etc. Who will be covered? Will your insurance company pay for the damages? Knowing the answer to this question ahead of time will save you the headache of looking for the answer after the fact.

    5. What will my deductible be? This might be the most important question of all, and one that you have the most control over. With most policies, you can choose your deductible amount: the higher the deductible, the lower your monthly payment will be. Common deductible amounts are $0, $100, $500, $750, $1,000, and $1,500. If you are involved in an accident and file a claim with your insurance company, your deductible is the amount you will need to pay out of pocket before the insurance company will pay the rest of the bill. Choosing a plan with a high deductible may be a wise decision, because your yearly bill (also known as your premium) will be lower and you many never get in a car accident. However, be sure that you don’t set your deductible so high that you won’t be able to pay it if you do get in an accident and need to file a claim.

    6. Do they have 24-hour claims service? Getting into an accident is stressful enough, and knowing that you can only contact your insurance company during business hours only adds to the stress of the situation. Be sure to look for insurance carriers that provide a 24 hour claims service to their customers, like Metromile! Even if it’s just a fender bender, knowing your insurance company has your back 24/7 can provide a great amount of peace of mind.

    7. Will I be using my car for work? Nowadays, many more people are using their cars for work. With the prevalence of ride sharing apps like Uber and Lyft, anyone with a car and a driver’s license can make money. If this sounds like you, it’s important to know that commercial auto insurance is a necessity. A personal auto insurance policy will not cover you if you transport paying passengers through ride sharing apps, if you’re delivering pizzas, performing a courier service, etc.

    8. Is my car financed or leased? It’s important to note that if you still owe money on your car, or you are expected to keep your lease in like-new condition, you’ll likely be required to insure the car for its full value – and possibly for any gap between what you owe and the car’s market value. Collision and comprehensive will cover any damages that may occur to your car, and gap insurance will cover the rest.

Finding the right car insurance policy can be tough, but Metromile wants to help. As always, we’ll be here if you have any questions along the way – we have your back! We hope these questions will help guide you in the right direction. Be sure to get a quote with Metromile while you’re on your search – we may end up being the perfect car insurance provider for you!

Julianne Cronin is a Bay Area freelance writer, content creator, and founder/editor of the women’s lifestyle site, The Wink. You can find her working on her capsule wardrobe, collecting cacti, and trying out the latest beauty products on Instagram.

Comparing Bundling Savings to Per-Mile Insurance Savings

All you keep hearing is bundle, bundle, bundle. Most companies offer bundling discounts, but you may not always save on insurance by doing so. We suggest doing your own research and math to really find out if you will save by bundling all of your policies together. Sometimes it works out that you will be saving, but other times you might discover that you can find bigger cost savings by keeping all your insurance policies separate.

Comparing Bundling Savings to Per-Mile Insurance Savings

To bundle insurance is to take all of your insurance policies and house them under one roof by using one insurance company, which could potentially help reduce the overall cost of each policy when taken together. Bundling is the idea that you can buy two or more types of insurance coverages from one insurance company.

Pros of Bundling:

One major benefit of bundling your insurance policies is that you will no longer have to pay separate bills for each of your policies with different companies. Instead, you will just need to pay one bill to one insurance company. Also, insurance companies will sometimes offer multi-line discounts, which means you can get a discount to your rates because you are choosing to have more than one type of policy through that company.

Cons of Bundling:

You are probably thinking, well why wouldn’t I bundle my insurance policies then? The major reason is that you could be missing out on discounts if you don’t shop around and compare savings from other companies. There are a wide variety of discounts across different states and companies that you could be missing out on if you choose to bundle rather than keeping your policies separate. Ultimately your savings could be greater than the savings you may get with bundling. Insurance companies like bundling because customers are more likely to stay with the same provider for a longer amount of time compared to those who don’t bundle. So in the long run, bundling is better for the insurance company than it is for you.

When it doesn’t make sense to bundle:

  • When you are doing it just for the discount. Beware, you might have just signed up for a new policy that was way less expensive, but with less coverage. When it comes time to file a claim you will realize you don’t actually have adequate coverage. Really consider the coverages and the rates you currently have before just grabbing the discount carrot dangling in front of you. A good rule of thumb: the new insurance policy coverages you are looking to bundle should be equal or better to the coverage you are canceling.
  • When it prevents you from shopping around. Don’t become complacent with your current policy, which could lead you to overlook a better rate or coverage.
  • When your life changes. Maybe at one point in your life bundling was a great option for you, but now you have a family, drive different cars, and it doesn’t meet your needs anymore. Don’t continue with a policy, just because you bundled, especially if it no longer fits your lifestyle.
  • When you are a low mileage driver. If you are driving less than 10,000 – 12,000 miles per year you could be taking advantage of per-mile insurance. Metromile policies are billed monthly on a per-mile basis; which means you are charged a low monthly rate based on the miles you drive. With per-mile insurance, there is no need to bundle your policy, since you will be saving money already.Learn more about per-mile insurance here.

Don’t get caught up in the hype of bundling all your insurance policies. Remember to do your research to see what options and policies work best for you. If bundling is still breaking your bank, get a free quote from Metromile now to see your savings.

Top 5 Reasons You Need to Switch to Per-Mile Insurance

End of the year is always a good time to assess your financial situation and see where you can save money in the coming year. Metromile has you covered with per-mile insurance which helps low-mileage drivers save. But, we have so much more to offer our customers than just savings.

Top 5 Reasons You Need to Switch to Pay-Per-Mile Insurance

Metromile is an Insurtech company that uses technology to invent ways to manage risk and offer better insurance at a fairer price to our customers. We truly believe it is unfair that low mileage drivers are subsidizing high mileage drivers when it comes to auto insurance. So, day-in and day-out, we continue to disrupt the auto insurance industry by not only giving low-mileage drivers a way to save on car insurance but also by building groundbreaking technological features that make owning a car easier.

Still not convinced? Here are five reasons you need to switch to per-mile, that aren’t just cost savings:

    1.Street sweeping alerts – Our nifty Pulse device can alert you when you are parked in a street sweeping zone in select cities – San Diego, Los Angeles, San Francisco, and Chicago. We use city data to determine if your car is parked in a street-sweeping zone, and, if so, you will receive a push notification or an email (depending on your preferences) 12 hours before the scheduled street cleaning. If you miss the first alert, there will be a second alert with one hour to spare. Saving you from getting a $63 to $73 dollar ticket.

    2. Diagnosing car health – You are driving down the freeway and all the sudden a light pops on your dashboard telling you there is something wrong with your car. But, what does it mean? You dread looking through your owner’s manual to try to figure out what could be wrong with your car. With the Pulse device it can detect engine codes and let you know through our smart driving app or online dashboard what the codes mean. That way you can feel at ease and determine your next steps for getting your car healthy again and back on the road sooner.

    3. Roadside assistance – Need a jump, a tow, a locksmith? We have you covered with 24/7 assistance. You can request roadside from the convenience of the smart driving app or online dashboard without even having to call in. We also have a feature that allows you to see in real-time how close roadside is to the location you requested. That way your mind can be put at ease with how long it will take to get help.

    4. GPS Tracking – Through our smart driving app you can view each trip your vehicle takes. This will allow you to see how much you spend on gas or how long it takes you to get from point A to B. Also, no need to wander around trying to remember where you parked your car, our technology can help to locate your vehicle and show where your car’s current location is. We have also helped customers locate stolen vehicles in times of need.

    5. Claims ExperienceWe understand the last thing you want to do when you get into an accident is deal with tedious calls or damage inspections or worry about when your claim will be resolved. You can easily file a claim with Metromile through the smart driving app or online dashboard. And, AVA, our AI claims assistant, can verify eligible claims in seconds and quickly resolve them. AVA collects your claim information to help you file, guides you through collecting damage photos and helps get your payment issued as soon as possible. AVA recently got upgraded and now helps you find a repair shop and if you have rental reimbursement coverage, you can request a rental car through the smart driving app or online dashboard. So your claim can be a convenient and an easy process.

Metromile is always seeking ways to improve customer experiences and these are only among the latest technologies we are offering if you are a customer. We will continue to invent the future with new features and ways to improve how auto insurance is done. So what are you waiting for? Get a fast and free quote today and join us in revolutionizing the car insurance industry.

10 Tips for Saving Money on Car Insurance

We all know that car insurance is a really expensive, but necessary expense. States like New York and Michigan can cost drivers upwards of $4,400 a year to have car insurance. This doesn’t help especially when you are living the big city life and already have to pay for all those costly city expenses. If you do some research and are prepared you can save some money, which is why we’ve gathered our top 10 tips for saving money on your car insurance.

How to save money on car insurance

    1. Change your coverages. Is your car getting older? Consider make it liability only coverage and removing comprehensive and collision coverage. Evaluate how much your car’s market value is and then think about if you car is worth paying for coverage that may only reimburse you for a little amount. Going down to liability only coverage for your older car will help to save on the overall amount you spend on car insurance.

    2. Get your credit score in tip-top shape. Having a great credit score can lead to cheaper rates on your car insurance. There are some states that don’t take this into consideration, but definitely use it to your advantage when getting quotes.

    3. Increase your deductible amount. Having higher deductibles amounts can lead your rates to decrease slightly. However, make sure you are choosing what is the best fit for your lifestyle.

    4. Switch to pay-per-mile car insurance. 65% of drivers pay higher premiums to subsidize the minority who drive the most. If you are a low mileage driver and drive less than 10,000 miles per year than you can save on average $500 with Metromile.

    5. Don’t let your insurance coverage lapse. Having a lapse in coverage can cause your rates to increase when signing up for insurance again. But, also having continuous coverage can help to lower your rates in the long run.

    6. Drive safe on the roads. Accidents can cause your rates to increase. By being a safe driver you are rewarding yourself with extra money in your pocket. Being accident free can help you qualify for a safe driver or good driver discount.

    7. Do your research.
    Find the best policy that is going to fit your needs and help you save. Seek out which companies offers discounts based on your experiences. Don’t be afraid to get quote happy.

    8. Look into rates for the vehicle you are shopping around for. Cars that are a bit older typically cost less than those vehicles that are brand new. You can also call your insurance company and get quotes on various vehicles you are considering before making your purchase on your next car.

    9. Ask about discounts that are offered. Usually when you sign up, the rates might already include the discounts that apply to you. But taking the time to make a call to your insurance company can help make sure you are taking advantage of discounts you could be missing out on.

    10. Combine policies. Have one policy per garaging address. Insurance companies usually do require this, but if you do this you could get a multi-car or multi-driver discount. Which will make the overall amount you might pay decrease when combining policies together.

Saving money and making car ownership easier is what we are all about at Metromile, so if you have any questions about the different factors that may affect your rates always know you can give us a call or reach out on Twitter. If you aren’t a pay-per-mile customer yet, see what your savings would be by getting a quick, free quote here.

The Low Down on Per-Mile Insurance

By now, you may have heard of the Pay-Per-Mile insurance Metromile offers. To put it simply, the less you drive, the more you could save. We are the only ones who offer this product in the USA (currently in 7 states)! We only measure mileage, not driving behavior (like how hard you brake).

The Lo Down on Per-Mile Insurance

Over the years, we’ve gotten many questions about per-mile insurance. We wanted to share some of our most common questions because chances are, you may be wondering the same thing.

  • How much money will I save with per-mile insurance?
    On average, our customers are saving up to $500 per year. Visit our page and answer a few questions about yourself and your car. You will immediately be able to see a preliminary quote and use the savings calculator to see how much money you could save in a year.
  • Can I choose my coverage?
    Yes! Just like with the insurance you have now, you can choose your deductible amount and liability protection. If you don’t need comprehensive or collision insurance, just set the deductible to “no coverage”. You able to edit coverages in the quote and choose between different liability protection packages and see the monthly base rate as well as per-mile charge adjust.
  • What does per-mile insurance cover?
    Metromile covers you just like any other car insurance. We offer full coverage including comprehensive & collision (the damage that occurs to your car). To cover property damage and injury to others, you can choose bodily injury liability limits of up to $250,000/$500,000.
  • How is my monthly bill calculated?
    The monthly base rate varies based on the number of days in the month and how much you drive. You also aren’t charged for the miles you drive over 250 a day (150 in New Jersey). Each month your bill will consist of your monthly base rate for the month ahead and the miles that you drove during that billing cycle.
  • Do I need to install the app before I get the insurance?
    No, you don’t actually need our app in order to have the insurance. The app is one of two ‘portals’, if you will, to see your data, which we visualize for you in pretty graphs and charts. The other way to see your data is via the online dashboard (just log-in at metromile.com).
  • Does my monthly base rate ever change?
    Your quoted policy lasts for six months, unless you make mid-policy changes. After that time, your monthly rate will be re-evaluated at renewal. Several factors can affect your rate, like citations and violations.
  • How do I pay my Metromile insurance?
    The amount due is automatically billed each month to the debit / credit card that you provide during sign-up. We make it easy for you to update your billing information anytime. Just edit on your online dashboard or app.
  • What other benefits are included with Metromile insurance?
    Roadside assistance and rental car reimbursement are optional coverages that can be included when having comprehensive and collision coverage. We also provide street sweeping alerts, diagnose your car health, and provide MPG.
  • What if I decide I to sell my car or realize that I need to drive it much more often than I originally planned?
    We understand that the adventure of life includes change – maybe you’ll decide to not have a car anymore, or you may have a new commute that requires putting more miles on the road. We realize that per-mile insurance may not work financially for you all the time. We just hope it becomes a considered option if it fits well with your lifestyle.

If you think per-mile insurance could help you save each month, get your free quote today and see how much extra savings you could pocket!

Breaking Down Insurance Jargon

We get it, insurance talk can be confusing and sometimes scary for people. You are on the phone with your insurance company and listening to an insurance agent talk but have no idea what any of the words mean. You feel like they are speaking another language. Metromile is revolutionizing the insurance industry and we want to put an end to the crazy insurance jargon speak. We have provided a list of the most common insurance terms used to help you feel confident next to time you speak about car insurance.

breaking down insurance jargon

Glossary of Car Insurance Terms

  • Actual Cash Value – the current market value of lost or damaged property at the time of a covered loss. It is calculated by the value of your property minus the depreciation of your property.
  • Adjustor – the person responsible for investigating and settling a claim
  • Annual Mileage – the amount of miles driven in a year
  • Bodily Injury – if an insured person is legally liable for an accident, BI coverage pays for injuries/deaths to people involved in the accident, but not limited to, emotional or mental anguish result from the bodily injury.
  • Cancellation – termination of an insurance policy by the company or per the request of the insured
  • Claim- a demand made by insured to provide coverage and compensation from the insurance company in the event of a loss, subject to the terms of the insurance policy contract.
    Claimant – a person making a claim against the insurance company. If the insured hits or causes damages to another person or vehicle they are the claimant.
  • Collision Coverage – optional coverage for when your car is damaged as a result of colliding with another object.
  • Comprehensive Coverage – optional coverage for when your car is stolen or damaged in ways that don’t involve a collision. For example: hail damage, fire, vandalism, damage from an animal, flood, earthquakes, fallings objects, and theft.
  • Contract – refers to the insurance policy, which is between the insurance company and the policyholder
  • Deductible – out-of-pocket expense that you agree to pay for losses up to set amount, such as $250 or $1000
  • Declarations Page – a document that shows the insured’s information, the period of time a policy is in force, vehicle information, the coverages insured has chosen, and the amount of premium
  • Depreciation – factoring in the wear and tear of an item’s value
    Earned Premium – the portion of the premium that actually has been used to buy coverage or what the insurance company has earned so far on the policy.
  • Endorsement – an addition or change to the policy contract
  • Excluded Drivers – formally excluded person that will not be covered if driving the car
  • Fault Claim – a claim where the insured will assume responsibility for the accident or the insurance company cannot recover the cost from the individual responsible.
  • Gap Insurance – pays the difference between what you owe on your vehicle and what your insurance pays if your vehicle is declared a total loss or stolen and not recovered, less your comprehensive or collision deductible.
  • Garaging Address – where you park the vehicle majority of the time
  • Indemnity – aims to provide the same financial position as an insured were before the loss occurred if the vehicle has been lost or damaged.
  • Insuring Agreement – describes the covered perils, or risks assumed, or nature of coverage, or makes some reference to the contractual agreement between insures and insured. It summarizes the major promises of the insurance company, as well as stating what is covered.
  • Insurance Score – Used in the underwriting process in some states. An individual’s score is frequently based on a person’s credit history.
  • Lapse in coverage – the termination of a policy due to non-payment of insurance premiums
  • Lienholder – Person or organization with a financial interest in a property up the amount of money borrowed or still owed on the insured’s vehicle.
  • Liability Insurance – insurance that provides protection from claims arising from injuries or damages to other people or property.
  • Liability Limits – the amount specified in your policy up to which the insurance company will protect you
  • License Types – various statuses of a driver’s licenses, such as active, permit, foreign, suspended, or expired driver’s license
  • Loss – the amount of money an insurance company pays out on a claim
  • Medical Payments – (usually optional) pays the doctor, hospital bills, and funeral expenses for injuries to you and the passengers in your car regardless of who causes the accident, up to the policy limits.
  • Named Insured / Primary Driver – the person or entity listed on the policy declaration page who has more right than the secondary driver.
  • Non Fault Claim – a claim where the insured is not responsible for the accident and the insurance company can recover the costs from the individual who is at-fault for the accident.
  • Personal Injury Protection – this is a package of first-party medical benefits that provides for medical costs, lost wages, loss of essential services normally provided by the injured person, and funeral costs.
  • Policy Insurance contract
  • Policy Term – the length of time the policy is active and valid
  • Premium – price of insurance policy that an insured pays in exchange for insurance coverage
  • Proof of Insurance – a type of documentation that an insured can provide to an individual proving that the insured has valid active insurance.
  • Property Damage – coverage for when you damage someone else’s property with your vehicle.
  • Pulse Device – a device created by Metromile that plugs into the vehicle’s OBD-II port to record mileage and also provide diagnostic codes, street sweeping alerts, and can help you to find your missing car
  • Quote – a non-binding estimate of the premium for the level of coverages chosen and based on the information by the individual seeking insurance.
  • Rate – the cost of insurance per risk to cover claim payments and expenses.
  • Renewal – after the policy period is up the policy will automatically renew for another term
  • Renewal Notice – a formal notice that an insured’s policy will renew which will include what the rates will be upon renewal.
  • Rental Reimbursement Coverage – optional coverage that helps pay rental vehicle costs when your vehicle is disabled as the result of a covered accident or loss. Covered under comprehensive or collision coverage.
  • Risk – the likelihood that an insured will make a claim
  • Secondary Driver – a listed driver on the policy that is insured to drive the vehicle.
  • Subrogation – the process of which a claim is made by a third party and you file through your insurance company. Your insurance company will seek payment recovery from the other party.
  • Telematics technology of sending and receiving and storing information relating to remote objects like your car through telecommunication devices.
  • Theft Tracker – a device that plugs into your vehicle to let you it’s location in case your vehicle is stolen
  • Total Loss Vehicle – in an auto claim, a vehicle is considered a total loss when the extent of the damage renders the vehicle unsafe to repair or the cost to repair exceeds a certain threshold percentage, as may be determined by state regulation, or the vehicle’s actual cash value prior to the accident.
  • Underinsured Motorist – pays (up to coverage limit) the insured person and other passengers in the vehicle when they’re injured as the result of an accident where the at-fault driver has insurance but it is below the limit of underinsured/uninsured coverage on the declaration page.
  • Uninsured Motorist – pays (up to the coverage limit) the insured person and other passengers in the vehicle when they’re injured as the result of an accident where the at-fault driver is uninsured, underinsured or a hit-and-run (must be reported within 24-hours to policy and statement taken within 30 days)
  • Uninsured/Underinsured Motorist Property Damage covers damage to your vehicle if hit by an uninsured or underinsured driver.
  • Underwriting – the process an insurer goes through to determine whether or not it will provide coverage for an applicant
  • Use Types – different use cases for a specific vehicle; range from commercial, bussiness to personal.
  • Personal – when using your vehicle you drive it for personal everyday life reasons
  • Business – when using your vehicle you drive it for a profit like food delivery or a ridesharing company
  • VIN (Vehicle Identification Number) – 17- digit number assigned to each vehicle manufactured after 1980

We hope this glossary can help you navigate the car insurance world. If you have any questions, let us know in the comments. If you are interested in seeing how much money you could save by switching to Metromile, get a free quote here.