Updated April 2026 | Metromile, Mile Auto, Allstate, Nationwide
Pay-Per-Mile Car Insurance Per Month: $35-$50 Base Plus $0.04-$0.08 per Mile
The best value for drivers under 7,500 miles per year: retired seniors, remote workers, college students, second-vehicle owners. Breakeven mileage, carrier comparison, the daily mileage cap.
The pay-per-mile carriers
Metromile (Lemonade)
Founded 2011, pay-per-mile pioneer. Acquired by Lemonade in 2022. Available in approximately 8 states as of 2026 (Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, Washington). Uses an OBD-II plug-in device or mobile app. Base premium typically $30 to $45 per month, per-mile rate $0.04 to $0.07.
Mile Auto
Founded 2017, Atlanta-based. Available in approximately 18 states as of 2026. Uses a photo of your vehicle's odometer monthly (no tracking device or app required). Base premium typically $30 to $40 per month, per-mile rate $0.05 to $0.08. Privacy advantage: no continuous GPS tracking, just odometer photos.
Allstate Milewise
Allstate's pay-per-mile product. Available in most states. Uses an OBD-II plug-in device. Base premium typically $35 to $50 per month, per-mile rate $0.04 to $0.07. Daily mileage cap typically 250 miles. Backed by Allstate's full claims infrastructure.
Nationwide SmartMiles
Nationwide's pay-per-mile product. Available in most states. Uses a mobile app or plug-in device. Base premium typically $30 to $45 per month, per-mile rate $0.05 to $0.08. Daily mileage cap typically 250 miles. Backed by Nationwide's full claims infrastructure.
The math for low-mileage drivers
Take a 35-year-old driver in a mid-cost state with a clean record, sedan, full coverage. Traditional policy: $208 per month, regardless of miles driven.
Same driver on a pay-per-mile policy at $40 monthly base and $0.06 per mile, driving 5,000 miles per year (415 miles per month): $40 base + $25 per-mile = $65 per month total. Savings vs traditional: $143 per month, or $1,716 per year.
Same driver at 8,000 miles per year (665 miles per month): $40 base + $40 per-mile = $80 per month. Savings: $128 per month, $1,536 per year.
Same driver at 12,000 miles per year (1,000 miles per month): $40 base + $60 per-mile = $100 per month. Savings: $108 per month, $1,296 per year. The savings shrink as mileage rises.
Same driver at 16,000 miles per year (1,330 miles per month): $40 base + $80 per-mile = $120 per month. Still saving $88 per month vs traditional, but the gap is narrowing toward zero at higher mileage.
The pay-per-mile breakeven varies by carrier and state, but typically lies around 18,000 to 22,000 miles per year for a typical clean-record driver. Below 15,000 miles per year, pay-per-mile almost always wins. Above 18,000 miles per year, traditional typically wins. Between 15,000 and 18,000, it is close and depends on specific quotes.
Who is pay-per-mile ideal for?
- Retired seniors. AAA reports retired adults drive approximately 6,400 miles per year, well below breakeven. Typical savings $80 to $130 per month.
- Remote workers. No commute, no driving for work-related travel. Typical mileage 4,000 to 8,000 per year. Savings $60 to $130 per month.
- College students. Vehicle stays at home most of the year, occasional use during breaks. Mileage often under 3,000 per year. Savings $100 to $150 per month.
- Second-vehicle owners. The household's second vehicle that is driven only on weekends and occasional errands. Often under 4,000 miles per year. Savings $90 to $140 per month per vehicle.
- Urban dwellers. City residents who primarily use transit, walk, or rideshare and only drive occasionally for out-of-town trips. Often under 5,000 miles per year.
Pay-per-mile is the wrong fit for: daily commuters with regular 20+ mile each-way commutes (typically 12,000+ miles per year), rideshare drivers (commercial use voids the policy), salespeople with high travel mileage, multi-stop family households with multiple drivers on one vehicle, and drivers in rural areas with long distances between common destinations.