Dispelling the Myths of Pay-per-mile Insurance

Paying for car insurance based on the miles you drive is a new and revolutionary concept. So new and revolutionary that we are currently the only company offering per-mile insurance in the United States! In this sense, we like to think of ourselves as trailblazers, offering a more fair and affordable insurance for low-mileage drivers. According to a recent study we ran (more coming soon), 65% of households drive less than 12k miles per year, so this could really benefit a lot of people. As pioneers of this new insurance model, we are always happy to clarify any confusion about how per-mile 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. We’re all about hassle-free car ownership, after all!

pay-per-mile insurance myths

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. You can read more in our privacy policy.

Myth: 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 per-mile insurance. With per-mile insurance, you only pay a low monthly base rate plus a per-mile rate for every mile driven. There will be no hidden fees or surprise taxes.

Myth: My per-mile rates will increase if I’m driving more than usual.
No need to worry if you are driving more than originally estimated. The amount of miles you drive have nothing to do with your per-mile rate. Your per-mile rate is 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 (150 in certain states) so feel free to road trip as much as you want!

Myth: The rates are so low, there must be coverage exclusions.
With per-mile 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. Since your monthly rate is based on the miles you drive, if you drive less then you will pay less!

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 typically contact you within one business day. You will also be matched with a Metromile customer experience advocate who will make sure the claims process runs smoothly, and can answer any questions you may have.

Myth: Since this insurance model is based on mileage, I won’t be covered when I am parked.
Even though the model is different, the coverage still applies the same as traditional insurance. Accidents can happen at any time, even when your car isn’t moving. When you choose to add comprehensive and collision coverage, you will be covered even while you are parked!

Myth: This is a new insurance model – it can’t be super reliable.
Our policies are underwritten by the National General Insurance Group, a company with a 70-year history, an “excellent” rating from AM Best, and over $2 billion dollars in premium. 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 per-mile insurance works, we’re always happy to chat! Just drop us a line at customerservice@metromile.com, check out our FAQs or get the full scoop on our pay-per-mile insurance page.