This Car Insurance Company Only Charges When You Actually Drive

Car insurance quotes can get pretty insane. Jump between companies and you may find deals that cost hundreds of dollars less per year. The disconnect in pricing from one company to another becomes even more frustrating if you live in a metropolitan area and don’t need to drive your car for long distances or all that often.

What if there were a better solution? A way to pay for car insurance only when you actually drive your vehicle?

A few months ago a good friend of mine made the switch to Metromile. Dave was seldom driving his vehicle in Pennsylvania but paying upwards of $250 per month for vehicle insurance — basically to park his car.

Paying By The Mile

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Photo Credit: Metromile

I thought it was crazy that Dave way paying so much to drive so little and I decided to research other alternatives. One of the most interesting insurance company’s I found was Metromile, a pay-as-you-go insurance provider.

Immediately, Dave’s bill went from $250 per month to just $150 or a savings of $1200 per year.

How It Works


Photo Credit: Metromile

Metromile is a San Francisco-based startup that realized low-mileage drivers should have the option to purchase insurance for pennies on the mile. These customers are typically more low-risk because they are not constantly on the road.

A plug-and-play solution is all it takes to get started with the company. The Metromile Pulse is a free device that plugs into your car’s diagnostic port. The device transmits your mileage to Metromile via a wireless network. Think of the device like Fitbit for your vehicle.

Metromile Pricing

Customers pay a flat rate of $35 per month and then just 5 cents per mile. In Dave’s case, he was driving less than 2500 miles each month which led to big savings over his old provider.

*** The base rate may slightly increase depending on your region.

An Added Bonus

Because you only pay a base rate and then an added per mile cost, you’ll pay less if your car is in the shop, you go on vacation, or you travel around town less during the holidays.

Where Is Metro Mile Available And Other Things You Need To Know?

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Photo Credit: Metromile

Metromile is still very much a startup which means available locations are still limited. The program is currently available in California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington.

The company will only insure vehicles that are 1996 models or newer.

Finally, you’ll have to wait a few days for your Metromile Pulse device to arrive so you can set up your new by-the-mile tracker.

Added Features You’ll Love

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Photo Credit: Metromile

Metromile provides some very useful features including 24/7 roadside assistance, glass repair, and round-the-clock insurance claim filing which can be completed with your smartphone camera and an internet connection.

If you’re not the most technically savvy person in the world the company also offers a toll-free number for claim filing.

You can learn more at Metromile.