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Having car insurance is a requirement in many states and can help you protect yourself and your property, as driving is inherently risky. Though you may have to get car insurance, you want to get a policy through a company that you feel has your back and can help you in the unfortunate event you need their help due to an accident. Plus, you want coverage for your specific needs, lifestyle, and budget. Given these factors, at some point, you might consider switching car insurance providers and trying out something new. You might have a big life change like a cross-country move, a marriage or divorce, or have an unpleasant experience with your current car insurance company and decide you want to take your business elsewhere. Learn how to switch car insurance and what to know about the process.

Step 1: Research car insurance providers 

If you’re thinking of switching car insurance providers, before making any moves ease into the process and do your due diligence. That means researching car insurance providers to see what’s out there. 

You can look at their websites, social media, and the Better Business Bureau. You can also look at the National Association of Insurance Commissioners (NAIC) website and use their Consumer Insurance Search tool to see various reports about your potential car insurer. That way you’re armed with knowledge and know which car insurance providers make it to the next round. 

Step 2: Review your coverage needs 

Most states have minimum liability insurance requirements to drive on the road. But notice the word minimum. That’s just the basic coverage. But there are many different types of auto coverage, from liability only to collision insurance and comprehensive insurance. 

The less insurance coverage you get, the less expensive it’ll likely be, but you’ll be more at risk financially. The more insurance you get, the more expensive it’ll be but you’ll be more protected in a variety of situations. Consider your needs and what type of policy might be the best fit. 

Step 3: Consider pay-per-mile coverage if you don’t drive a lot 

You might look into traditional auto insurance coverage, but you don’t want to miss out on pay-per-mile coverage if you don’t drive a lot. Many people have made the switch to working from home, slashing their commute time and related costs. 

If that’s you, consider pay-per-mile coverage if you drive fewer than 10,000 miles each year. Metromile offers this type of insurance which could save you up to $947* per year. Rates begin at $29 per month, plus a few cents for every mile you drive. 

Step 4: Shop around for car insurance quotes 

After researching on car insurance companies and assessing your coverage needs, it’s time to look at the numbers. 

Shop around and get car insurance quotes with multiple car insurance providers. Review rates, coverage options, and terms and conditions. Also, see if you qualify for any potential discounts. Get at least three car insurance quotes, so you have enough options to compare. 

When shopping for car insurance and getting quotes, select the same type of coverage for each, so it’s an accurate comparison. During this process, you’ll typically need to provide your zip code, VIN, driver’s license, and information about the type of vehicle you want to insure. 

If you see better rates at another car insurance provider but are unsure about switching car insurance, you can contact your current insurer to see if it’s possible to get a better rate or qualify for a discount. 

Step 5: Look into potential cancellation or other types of fees 

Before switching car insurance providers, contact your current car insurer to see if there will be any consequences. 

For example, if you cancel your current car insurance policy in the middle of your coverage term before the renewal period, your insurer may tack on a cancellation fee. They might not, either, but you want to know what you’re getting into before making any moves. No one likes a surprise fee (The good news is that Metromile doesn’t charge any cancellation fees). 

Also, ask how much notice they require to cancel and keep a paper trail of your communication, so you’re all set. 

Step 6: Get a new policy with the new insurer 

The next step is to get a new policy with the new insurer. Ask the company when your policy will start and when you’ll receive your car insurance cards. 

Switching car insurance can be a good move in a various circumstances, but it’s also a delicate dance as you must avoid any lapses in car insurance coverage to avoid trouble. 

If you have a lapse in coverage, you could be considered a risk, even if it’s unintentional. On top of that, you could be hit with fines or even get your license suspended. And you don’t want to imagine getting into an accident if there is a lapse in coverage. 

So while getting new coverage, make note of the start date. Then, make sure you cancel your old coverage, and it lines up with when your new coverage starts. 

Step 7: Officially cancel your old car insurance policy 

After starting your new insurance coverage, make moves to cancel your old car insurance policy. Again, make sure there is absolutely no lapse in coverage at all. 

Get it all in writing. Your car insurer may have its own process to cancel coverage, so follow their recommended steps. 

After canceling your old policy, keep the paperwork for your records. Also, make sure you have the new coverage in place and your car insurance cards are in your wallet so you’re prepared and covered while driving. 

When is the best time to switch car insurance companies?

Switching car insurance providers requires a bit of research and work, but can make sense in certain situations. Here are some of the best times to make the switch:

• You have a life change or a lifestyle change, such as a marriage or divorce or going from commuting to working from home. 
• You have moved. Whether it’s in the same city or state or out-of-state, moving can affect your car insurance premiums. 
• You’re unhappy with your car insurance provider. Like any relationship, the value you get should be more than the cost. If you’re dissatisfied, switching car insurance providers can be a good idea. 
• You’ve added a car or a new driver to your policy. This may change your risk profile and can affect your premium. 
• Your car insurance premiums have skyrocketed. If your rates have exploded due to a speeding ticket or accident, shop around. 

Is switching car insurance possible with an open claim? 

If you have an open claim with your current car insurance provider and are thinking of switching car insurance, it’s best to hold off. 

While it may be possible to make the switch, it’s not a great idea. Filing a claim typically comes with an increase in costs at the time of renewal, if you’re found at fault. So making a switch during that process, may mean paying more sooner. Also, getting your claim taken care of can take time, and it may be messy to make the switch mid-way. 

Can I get a refund if switching car insurance before the renewal period? 

You might wonder if you can cancel car insurance at any time. The good news is you can. If you’re canceling and switching car insurance before the renewal period, you’ll likely get a portion of your premium refunded to you. There may be additional fees tacked on, but you are eligible for a car insurance premium refund before your term is up. 

The bottom line 

Sometimes change is a good thing and the same is true when switching car insurance. If you want to figure out how to switch car insurance and take the appropriate measures, follow these seven steps to get started. If you’re unhappy with your car insurance rate and are a low-mileage driver, it’s time to rethink your auto insurance. Stop paying for miles you aren’t driving and pay based on how much you do actually drive through pay-per-mile insurance. Check out coverage options and potential rates with Metromile. 

Melanie Lockert is a freelance writer, podcast host of the Mental Health and Wealth show, and author of Dear Debt. She’s a cat mom to two jazzy cats, Miles and Thelonious, an amateur boxer, music lover, and needs coffee to function.

* Average annual car insurance savings by new customers surveyed who saved with Metromile in 2018.

The COVID-19 pandemic has turned a lot of us into low-mileage drivers.

Between stay-at-home and shelter-in-place orders, you might be stuck at home quarantining or with nowhere to go. Meanwhile, if you’re now working from home, you’ve probably cut back on a lot of the miles you used to drive.

So if you’re driving less often these days, for whatever reason, you might be wondering what pay-as-you-go auto insurance is all about and if it could save you money.

We believe paying for car insurance based on the miles you drive is a fairer concept. About two-thirds of drivers in the U.S. are overpaying for their auto insurance. According to a 2018 survey of customers who saved, new Metromile customers save 47% a year on average compared to what they were paying their previous auto insurance company.

Let’s take a look at some of the most common myths about pay-as-you-go car insurance.

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 once or twice, your auto insurance rates will not be immediately affected. 

The most important factor determining the price you pay with Metromile is how many miles you drive each month.

Myth: My driving data is sold to third-party companies, so they can have information about where I am driving.

Metromile takes steps to keep your driving data and personal information secure and private.

Metromile does not sell, share, or rent any data to unaffiliated third-parties. Rest assured the information the Metromile Pulse device accesses is used to accurately count the miles you drive each month and provide you with a fair rate. (The device helps to get your claims resolved faster, too.)

As a Metromile customer, you also have the option to disable location services, and it won’t affect your bill. But keep in mind, you won’t be able to access free smart driving features, which can help you find your parked vehicle, find out about street-sweeping tickets, and look back at your past trip details.

Myth: My pay-as-you-go insurance rates will increase if I’m driving more than usual.

There is no need to worry if you are driving more than you originally estimated. 

There is no penalty for driving more than you usually do or going over the estimate you supplied when you first signed up.

Your per-mile rate is fixed for your policy term and won’t be affected by increased driving. Plus, if you drive more than 250 miles (150 in New Jersey) in a single calendar day, your extra miles will be free as a bonus. So feel free to take that road trip.

Myth: The rates are so low, there must be coverage exclusions.

With pay-as-you-go insurance, you can have the same great insurance coverage that you are used to. Some drivers may even have higher limits at the same or lower price they paid another insurance company. 

Metromile policies are personalizable: You can choose to add comprehensive and collision coverage, roadside assistance, select different deductible amounts, and more. 

Drivers can save money with pay-as-you-go auto insurance because the premiums are dynamic. There is no need to call to let us know that you have been driving less like you might have done with your past insurer.

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. 

You can even start filing your claim right from the Metromile app or the website. Our artificial intelligence claims assistant AVA works with the Pulse device to verify details and quickly process them. In some cases, we even pay out claims the same day.

Need a jump, tow, or locksmith? We’ve got you covered 24/7 if you add roadside assistance to your policy. 

We also have a team of licensed claims adjusters who will keep you updated on your claim’s status and can answer any questions you may have along the way.

Myth: Since this insurance model is based on mileage, I won’t be covered when I am parked.

While our pricing model is different than other insurance companies, the coverage still applies the same way as traditional insurance companies. 

Accidents can happen at any time, even when your car isn’t moving. When you choose to add comprehensive and collision coverage, you can be covered even while you are parked.

The bottom line

Pay-as-you-go auto insurance, sometimes called pay-per-mile car insurance, is insurance based on how far you drive. Your actual driving determines how much you pay instead of a flat rate like with other insurance companies.

Some drivers save by switching to pay-as-you-go auto insurance. You can see if you could save with Metromile by trying Ride Along™ for free.

Ride Along is a feature in the Metromile app that helps you get a more accurate rate. Download the app and get a free auto insurance quote to start your trial. (Remember: You’ll still need to keep your current insurance coverage unless you decide to switch to Metromile right away.) Then, drive as you typically would for about two weeks. We’ll consider how you drove, including how many miles you drove, to show you your rate. 

We think this will help you understand if you can save money before you switch to Metromile and begin your pay-as-you-go auto insurance coverage.

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.

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 Experience – We 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.

Just because you own a car doesn’t mean you are regularly taking it out for a spin. Perhaps you only use it when you are heading on a road trip, grabbing groceries from the store, or rushing to work when you “didn’t hear your alarm”. When you realize you’ve only clocked 5,000 miles in the past year, you might feel pressed to justify such a large investment. But it’s your car, it’s your way of driving your friends to the beach this weekend. We get it, which is why we compiled some easy ways to keep your car running smoothly and maybe even leverage it to earn some extra cash.

Try pay-per-mile insurance: If you are a low-mileage driver and drive less than 10,000 miles a year (around 200 each week) you could save a lot of money with pay-per-mile insurance. Your monthly bill is based on the miles you drive, so if you don’t drive much, you won’t pay much. Worried about the occasional road trip? Metromile won’t bill you for more than 250 miles a day (150 in certain states)! If you are interested in seeing how much money you could save, try getting a free insurance quote.

Join a carpool: Chances are you aren’t the only person driving a similar route to work — daily traffic is proof of that. Team up with others in your neighborhood and start a weekly carpool to save on gas and sneak in some valuable work time when you aren’t behind the wheel. There are lots of apps that can aid in this endeavor, like Carma, Ride and even a new pilot from Uber.

Know the basics: There’s no need to spend a lot of time on car maintenance when you aren’t driving much, but there are a few tips to remember in order to avoid costly repairs. Know how to deal with a flat tire and keep your tires properly inflated. It’s also important to change your oil on a regular basis as it keeps your car running smoothly and extends the life of the vehicle. Lastly, fix your brakes if they are squeaky because that likely means the brake lining is starting to wear thin.

Be smart about car storage: If you are leaving your car idle for a long time, the ideal place to store it is in a garage because it prevents theft and also protects against the elements like that blazing summer sun. Garage parking can be expensive, especially in the city, so if you don’t need frequent access to your car you should shop around for the cheapest garage space instead of paying a premium to park in the closest garage. If the most viable option is keeping it outside, consider purchasing waterproof car cover to keep it clean to save on long-term costs of wear and tear.

See My Savings

Driving in New Jersey is expensive. In fact, it’s the fifth most expensive state to own a car in! Residents of the Garden State – you’re in luck because we’re here to make car ownership more affordable. Metromile is bringing the first and only pay-per-mile car insurance offering to New Jersey, so if you don’t drive much, you likely won’t have to pay much for car insurance.

With this revolutionary pricing model, your monthly bill will be determined by the miles you drive each month*. That means that the less you drive, the less you pay. On average, we are saving our low-mileage customers $500 annually. An increasing number of New Jerseyans are choosing to ride bikes, take trains or buses, or even walk instead of drive, so we expect to see a lot of people that will save money with per-mile insurance. Here at Metromile, we like to think of ourselves as the “uninsurance” company, making car ownership easy and affordable for low-mileage drivers.

We also alleviate many of the hassles of car ownership with our free smart driving app, which we just totally redesigned and gave a fresh coat of paint. Features include the ability to locate a missing car, view trip details, and decode those pesky check engine lights. The key to all of this is the Metromile Pulse, a device given to all per-mile insurance customers that plugs into the car’s OBD-II port to deliver useful data and insights.

New Jersey marks the third state on the East Coast where Metromile’s per-mile insurance is offered, and joins California, Illinois, Washington, Oregon, Virginia and Pennsylvania. We have more planned for 2016, so sign up for our waitlist to get notified when we arrive in your state!

*Insurance rates are determined by driving history and record, car make and model. Mileage does not determine the base rate or per-mile rate.

If you would like to dig a little bit deeper, you can check out our original report or the Brookings Institution’s report about pay-per-mile car insurance.

The wait is over. Per-mile insurance is now available in Pennsylvania! We are rewriting the rules of the road by introducing a totally new type of car insurance where the monthly bill is based on miles driven.

Over 60% of drivers in Pennsylvania are considered low-mileage (drive less than 200 miles per week), and large cities like Philadelphia and Pittsburgh already have great public transportation and bike-friendly commute options. In fact, Philadelphia has more bike commuters per capita than any of the other ten biggest cities in the U.S. It is likely that Pennsylvanians who rarely drive are overpaying for car insurance, so we anticipate that pay-per-mile car insurance will be much-needed solution!

We also plan to help Pennsylvanians become smarter drivers with our smart driving app. Insurance customers will receive the Metromile Pulse, a device that plugs into the car’s OBD-II port to deliver useful driving data and smart services.

Pennsylvania is the second state on the East Coast where we offer per-mile insurance, and we have more planned on our roadmap. Sign up for our waitlist if you would like to be notified when we arrive in your state!

The following is a post from Jim Levinsohn, Director, Jackson Institute for Global Affairs, Yale University, and George Mohler, Director of Data Science, Metromile

If you’re like most drivers, the answer seems to be “yes.”

We analyzed 191,699 trips made by Metromile customers who started out on a free test drive program and later switched to pay-per-mile insurance. (Each switcher had at least 30 days of driving before and after the switch). On average these individuals drove 16.4 miles per day before purchasing per-mile insurance. After switching, they drove on average 15.5 miles per day—a reduction of 6%.[1]

What’s going on here? It turns out that economics predicts exactly this outcome. When you buy traditional car insurance, you pay a fixed premium. That means that when you’re deciding whether or not to make a given trip, insurance cost doesn’t enter the calculation since that cost is invariant to whether or not you make the trip. You might consider the cost of gasoline and your time, because those costs increase if you make an extra trip, but not insurance costs. One consequence of traditional car insurance is that drivers with below average mileage in effect subsidize the premiums of drivers with higher mileage (an individual’s risk of an accident in a year increases with miles driven).

But when your car insurance is on a per-mile basis, the equation changes. Drivers with below average mileage start to save money, whereas drivers with above average mileage pay more. The less you drive, the lower your premium, so there’s a clear incentive to reduce your miles driven. In order to achieve the same incentive for reducing mileage, the tax on gasoline would need to be on the order of $0.74 per gallon! This is larger than the state gasoline tax in even the highest tax states. Simply changing the way insurance is priced has significant environmental advantages. …

Just because you own a car doesn’t mean you are regularly taking it out for a spin. Perhaps you only use it when you are heading on a road trip, grabbing groceries from the store, or rushing to work when you “didn’t hear your alarm”. When you realize you’ve only clocked 5,000 miles in the past year, you might feel pressed to justify such a large investment. But it’s your car, it’s your way of driving your friends to the beach this weekend. We get it, which is why we compiled some easy ways to keep your car running smoothly and maybe even leverage it to earn some extra cash.

Know the basics: There’s no need to spend a lot of time and money on car maintenance when you aren’t driving much, but there are a few tips to remember in order to avoid costly repairs. Know how to deal with a flat tire and keep your tires properly inflated. It’s also important to change your oil on a regular basis as it keeps your car running smoothly and extends the life of the vehicle. Lastly, fix your brakes if they are squeaky because that likely means the brake lining is starting to wear thin. There’s no need to stop your car on the side of the road, but you should get them serviced soon after you hear the noise. If you are hungry for more car maintenance advice, we had one of our customer experience advocates share her favorite tips.

Be smart about car storage: If you are leaving your car idle for a long time, the ideal place to store it is in a garage because it prevents theft and also protects against the elements like that blazing summer sun. Garage parking can be expensive, especially in the city, so if you don’t need frequent access to your car you should shop around for the cheapest garage space instead of paying a premium to park in the closest garage. If the most viable option is keeping it outside, consider purchasing waterproof car cover to keep it clean to save on long term costs of wear and tear. Read more in our recent blog post about car storage tips.
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Owning a car is liberating, but it can also try your patience. Since we’re all about making car ownership as easy as possible, we recently ran a survey to uncover the habits and headaches of Illinois drivers (one of the states where Metromile offers per-mile insurance). We hope to use these insights to guide future innovations, and maybe these stats will encourage drivers to drive a little less and walk (or bike) a little more!

Of the 500 people that responded, more than 62% commute less than 20 miles by car per day, with nearly 30% commuting less than five miles per day. Despite the low daily mileage, 36% said that what bothers them the most about driving a car in Illinois is traffic and congestion.

According to TomTom data, Chicago is one of the top 10 US cities with the most congestion, with a 27% increase in overall travel time compared to driving without any traffic. There is a 43% increase in time traveled during the morning commute and a 59% increase in the evening, which explains why Illinois drivers are so frustrated with the traffic they face in such a short commute. In 2014, the average commuter spent an extra 100 hours traveling during rush hour alone. That could have been one awesome long weekend!

We also found that the costs of driving and car ownership are frustrating. 25% stated that gas prices were one of the biggest problems associated with car ownership, and another 10% don’t like the cost of parking and parking tickets.

This is where per-mile insurance comes in. We’re learning that Illinois car insurance customers who pay-per-mile actually drive less (more on that soon!). Fewer cars on the road results in fewer traffic back-ups and ultimately fewer accidents. It also means paying for gas less frequently, and probably fewer parking tickets. Plus, when your monthly bill is based on miles driven, if you drive less then you will pay less! You can learn more about how per-mile insurance works here.