Metromile Auto Insurance: Is It Right For You?

Metromile is a pay-per-mile car insurance provider, meaning that it charges customers based on how much they drive. It was founded in 2011 in San Francisco and is now available in eight states: Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington. Metromile works by using a device called Pulse that plugs into a car's diagnostics port and tracks the number of miles driven. The company offers standard car insurance products at reasonable prices and is a good option for people who work from home or don't drive their cars regularly.

How does pay-per-mile car insurance work?

Pay-per-mile car insurance is a type of policy designed for low-mileage drivers. It allows users to pay a base rate, usually a low monthly amount, plus a few cents per mile driven each month. This means that the more you drive, the more you pay. However, there is usually a daily cap on mileage, so any miles over a certain number per day are free. This prevents users from being charged a high amount for occasional long-distance trips.

There are two main ways that insurance companies track the number of miles driven: a telematics device or a smartphone app. A telematics device is a physical device that is installed or plugged into the vehicle's diagnostic port, while a smartphone app can be downloaded straight to your phone. Both options collect specific information about your driving habits, including speed and braking, to determine a personalised premium.

Pay-per-mile insurance is best suited for people who drive very little. This may include those who take mass transit, walk, or use another mode of transportation, or those who have a second vehicle that they rarely use. It is also a good option for those who work from home or have a short commute.

The cost of pay-per-mile insurance varies by insurer and how much you drive, as well as factors such as your driving history, age, location, and vehicle. To estimate your costs, you can use the following formula:

> Monthly base rate + (Per-mile rate x Approximate number of miles you drive per month)

For example, if your pay-per-mile quote shows a monthly base rate of $34 and a per-mile rate of 5 cents, and you drive 800 miles in a month, your monthly rate would be $74.

Pay-per-mile insurance can be a good way to save money if you don't drive your car very often. However, it's important to compare quotes from different companies and consider both pay-per-mile and traditional insurance options to find the best deal for your needs.

Who is Metromile for?

Metromile is for people who want to save money on their car insurance by paying per mile. It is ideal for those who don't drive much, with low-mileage drivers saving up to $947 per year on average.

The target market for Metromile is people who work from home, are retired or semi-retired, or commute by mass transit but keep a car for the weekend—anyone who isn't stuck in a long daily commute. If you only drive your car occasionally or for short distances, Metromile could be a good option for you.

Metromile is also a good choice for those who want to customise their coverage to meet their needs. The company offers flexible coverage options, including accidents with another vehicle, a fixed object, or motorists, as well as coverage for things that are out of your control like weather, animals, and theft.

Metromile is also a good fit for those who want to use an app to manage their car insurance. The Metromile app allows users to view their trips, understand their car's health, avoid tickets with street sweeping alerts, and find their lost or stolen car.

However, it's important to note that Metromile is only available in eight states as of January 2024: Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington. Additionally, Metromile may not be the best option for people who live in rural areas without good cell service or those who park their cars in underground garages, as the Pulse device requires constant cell service to function.

What does Metromile cover?

Metromile is a pay-per-mile car insurance provider, meaning that its charges are based on how much you drive. It is ideal for people who don't drive regularly or who only drive short distances.

Metromile offers all of the standard options you would get with most carriers, including:

• Bodily injury coverage
• Property damage coverage
• Uninsured or underinsured motorist protection
• Comprehensive and collision deductions from $250 to $1,000
• 24/7 claims service
• Roadside assistance

Metromile also offers some additional extras, including:

• Roadside assistance: flat tire assistance, lockout assistance, battery jump-starts, gas delivery, and towing.
• Rental car reimbursement: reimbursement for the cost of a rental car after a covered accident.
• Collision deductible waiver: covers your collision deductible if a driver without insurance damages your car.

How much does Metromile cost?

The cost of Metromile auto insurance depends on two factors: a base rate and a per-mile rate. The base rate is a fixed monthly fee, while the per-mile rate is a variable fee that depends on how many miles you drive. Metromile's rates are designed to be affordable for people who don't drive a lot of miles each month.

The base rate depends on various factors, including your location, driving history, claims history, coverage choices, and vehicle. The per-mile rate is typically a few cents per mile. For example, your base rate might be $29 per month, and you might be charged $0.06 for each mile you drive. So, if you drove 500 miles in a month, your total bill for that month would be $59 ($29 base rate + $30 for miles driven). If you drove 1,000 miles that month, your bill would be $89 ($29 base rate + $60 for miles driven).

Metromile also offers some discounts and extras. For example, you can get a discount if you bundle Metromile car insurance with an insurance policy from Lemonade. They also offer roadside assistance, rental car reimbursement, and pet injury protection.

Overall, Metromile can be a good option for people who don't drive a lot and want to pay for car insurance based on their mileage. However, it's important to note that the cost of Metromile insurance can vary depending on individual factors, and it's always a good idea to get a quote and compare it to other insurance options before making a decision.

How does Metromile compare to competitors?

Metromile is a pay-per-mile car insurance provider, meaning that customers are charged based on how much they drive. Its rates are determined by a driver's actual mileage, with a flat monthly fee and a mileage fee. Metromile's competitors include:

• Lemonade: America's top-rated insurance company, which acquired Metromile in July 2022.
• Allstate: A large insurance company that offers a pay-per-mile program called Milewise in 17 states.
• Progressive: A large insurance company that offers a usage-based program called Snapshot.
• Mile Auto: A pay-per-mile auto insurance company available in 11 states.
• Root Insurance: A company that provides car insurance services.
• Wejo: A company that develops smartphone telematics applications to monitor driving behaviour.
• Xee: A company that offers a connected services platform for cars.
• Endurance: One of the leading providers of vehicle protection coverage in the US.
• Nationwide Mutual: A large insurance company that has introduced SmartMiles in 44 states.

Metromile stands out from its competitors by offering pay-per-mile insurance, which can be a good option for those who don't drive regularly or long distances. However, it has received mixed customer reviews, with some reporting issues with customer service and claims handling.

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