Dispelling the Myths of Pay-Per-Mile Car Insurance

Paying for car insurance based on the miles you drive is a relatively new and revolutionary concept. Some insurance companies offer Pay How You Drive insurance programs where they monitor your driving behavior; if you drive too fast or brake too hard your rates will likely go up. With Metromile’s pay-per-mile car insurance model, we only monitor miles driven. So if you don’t drive very far, you won’t pay a lot. Your monthly bill will fluctuate based on how many miles you drove that month.

Car Driving Down Road with Text Overlay: 'The Myths of Per-Mile Insurance'

Car insurance can be confusing. With deductibles, premiums, and coverage types from here to Hong Kong, it’s easy to get lost among the technical jargon. Couple that with differing insurance models like pay-per-mile and Pay How You Drive, and it’s no wonder people find insurance shopping to be so disorienting. As pioneers of the pay-per-mile car insurance model, we are always happy to clarify any confusion about how pay-per-mile car insurance works. So, to make things a little bit easier for those considering making the switch, here are the answers to some common questions our team receives.

  • Myth: My rates will go up if I speed or slam on the brakes.
    No judging here- if you hit the gas pedal or slam on the brakes your rates will not be affected. We only measure miles, not behavior.
  • Myth: My driving data is sold to third-party companies so they can have information about where I am driving.
    All of your driving data and personal information is kept private – we do not sell any data to third-parties. The Metromile Pulse (OBD-II) device is only used to measure miles so we can bill accurately based on mileage, and the data you see in our app is only to help you make more informed decisions about your daily driving. We will never use the data collected through the Pulse to resolve insurance claims without your permission. You can read more in our privacy policy.
  • Myth: Pay-per-mile insurance is directly related to the new “pay-as-you-drive” tax I’m hearing about in the news.
    Although the phrases sound similar, the “pay-as-you-drive” tax that is being proposed in Oregon has nothing to do with pay-per-mile insurance. With pay-per-mile insurance, you only pay a low monthly base rate plus a pennies-per-mile rate for every mile driven. There will be no hidden fees or surprise taxes.
  • Myth: My pay-per-mile rates will increase if I drive more than estimated on my Quote.
    No need to worry if you are driving more than originally estimated. The amount of miles you drive have nothing to do with your pay-per-mile car insurance rate. Your pay-per-mile rate and base rate are fixed and will not be affected by increased driving, but your monthly bill might be a bit higher if you drove more than usual. We also don’t charge for miles driven over 250/per day so feel free to road trip as much as you want!
  • Myth: The rates are so low, there must be coverage exclusions.
    With pay-per-mile car insurance, you will have the same great coverage that you are used to. You can choose to add comprehensive and collision coverage, roadside assistance, and more. Metromile offers the same coverage as other insurance companies, just at a fairer price.
  • Myth: If I get into an accident, the claims process is going to be tedious.
    In the unfortunate event of an accident, our claims team is available to help 24/7. Once you file the claim, an adjuster will be in touch with you to handle your claim. You can even file a claim online or through our smart driving app. You are our top priority, so you can rest assured knowing that we will handle your claim with the utmost care, and as quickly as possible to get you back on the road.
  • Myth: This is a new insurance model – it can’t be super reliable.
    We recently raised over $190 million in funding which we used to acquire an insurance carrier. We also set aside the majority of the premium we receive to cover claims. This allows us to always have more than the required amount of funds to oversee claims. Additionally, our claims team is comprised of industry experts with over 200 combined years of experience at major insurance companies, with both extensive knowledge of best practices as well as plans to continuously improve the experience. From our always-available claims teams to our industry-leading customer service, we are working non-stop to make sure you have a best-in-class experience every time you interact with Metromile.

If you still have questions about how pay-per-mile car insurance works, we’re always happy to chat! Just drop us a line at customerservice@metromile.com, Tweet us @MetromileHelp, check out our FAQs or get the full scoop at metromile.com