Auto Insurance
Pay-Per-Mile Insurance
Auto insurance where you pay a low base rate plus a per-mile charge — ideal for low-mileage drivers.
Last reviewed: May 2026 · Editorial methodology
Definition
Pay-per-mile insurance charges a fixed monthly base rate (typically $20–$50) plus a variable per-mile rate (usually 2–8 cents per mile). A driver covering 4,000 miles per year could pay $500–$800 annually compared to $1,500+ for a traditional policy. Leading providers include Metromile (now part of Lemonade), Milewise by Allstate, and SmartMiles by Nationwide. Pay-per-mile is especially attractive for electric vehicle owners, retirees, and remote workers who drive infrequently. The per-mile rate is typically measured via a small plug-in device; daily mileage caps (often 150–250 miles) protect against unusually long trips.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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