You need to know that you don’t always have to pay for your auto insurance yearly or even monthly. If you don’t drive frequently, you can save more money using pay-per-mile auto insurance. As long as you genuinely don’t drive frequently, you will not have a problem with this insurance plan.
Keep reading to learn more about this insurance and how it applies when you subscribe to it.
What is Pay-Per-Mile Auto Insurance?
Pay-per-mile car insurance allows you to pay for your coverage based on how many miles you drive. As a result, it’s great for people who don’t drive very often.
Pay-per-mile insurance is distinct from the low-mileage discount offered by some auto insurers. It calculates your rate based on how far you drive. A low-mileage discount decreases the cost of a standard policy by a percentage.
How Does It Work?
Customers who pay per mile pay a monthly base price that does not vary and a variable monthly mileage cost. If the number of miles you drive fluctuates from month to month,
The carrier will use factors such as your gender, age, and automobile make and model to determine your monthly rate. Though pay-per-mile insurance is not the same as standard auto insurance, you still have access to the same coverage options.
How Do Insurance Companies Calculate Mileage?
Insurance companies use “telematics,” a form of technology that allows them to track your distance via an app or device. They may also use telematics to monitor potentially dangerous driving tendencies, such as abrupt braking or acceleration.
Some pay-per-mile providers, such as Nationwide SmartMiles and Metromile, provide prices or discounts depending on driving habits they have documented. If you drive carefully, you may be able to save money on your insurance.
Mile Auto offers pay-per-mile insurance without the need for a plug-in device if you don’t want to disclose your information. Instead, you’ll have to provide the carrier with a monthly image of your odometer.
