Some things in life are consistent and predictable: long lines at the DMV, sticker shock at the movie theater, and an overflowing email inbox every Monday morning. But other things fluctuate a bit. Case in point: your monthly Metromile statement. Have you ever wondered why your bill varies from month to month? If so, you’re far from alone — it’s one of the most frequently asked questions customers have, so today, we’re tackling it head-on.
Here’s the deal in a nutshell: Metromile isn’t just unique in its pay-per-mile structure and execution; it’s also totally innovative in its approach to billing. Unlike most other insurance companies who charge a hefty fee regardless of whether you drive 5 miles or 5,000 miles, Metromile charges a low base rate to cover your car while it’s parked, and then tacks on pennies per each mile your car is actually driven.
So essentially, customers really only pay for what they use, which Metromile thinks is a pretty fair way to do business. Because of that model, however, you’ll inevitably see some fluctuation from month to month. Unless you’re strictly sticking to a mileage budget, you’re probably mixing up your time behind the wheel quite a bit. Maybe one month you’re relying on public transportation a little more heavily and the next month you’re off on a road trip. No matter what comes up in your life, Metromile’s mission is to keep your costs as low as possible.
Why Your Bill Varies Every Month and Why That’s a Good Thing
So what exactly is the math behind that monthly bill variation? There are a few good reasons for the ups and downs you observe each month.
First, let’s talk about that base rate. That sum is determined by a daily rate multiplied by the amount of days in each month. So, as you can expect, shorter months will always cost slightly less (i.e. February vs. October, or any month with 30 days versus those with 31). Despite the subtle nuances, your actual daily rate will never change within a six-month period unless you make a specific request.
While your base rate will pretty much stay the same throughout the month (give or take the cost of a few days, depending on the length of the month), the other portion of your bill may rise and fall quite a bit — that’s the pay-per-mile portion. Because Metromile doesn’t believe in charging customers for miles they don’t drive, you’ll always be in complete control of your mileage charges and have the opportunity to budget miles accordingly.
Because miles are charged retroactively, you’ll always have the opportunity to reflect on your actions from the previous month and, if necessary, make adjustments. Took one too many long joyrides or repeated Target runs last month (hey it happens)? If money’s tight this month, you might choose to do more errands on your bike or walk to work a few days a week to save some dough.
Having a varying bill means you’re in control of what you pay — not an anonymous insurance company charging an arbitrary rate. You can even monitor your monthly bill on a daily basis if you want to, just to be extra sure you’re staying on or below your car insurance budget. Any time you know you need to put aside some more cash for the month, you’ll know if and when driving less can save you more.
Still Have Questions?
Even when it’s simple, billing can still be confusing, so if you still have questions, don’t hesitate to reach out on Twitter, Facebook, or Instagram or visit the help center. And if you’re still not sure whether Metromile is the insurance company for you, visit metromile.com or call 1.888.242.5204 to get a free quote.