- Pay-per-mile car insurance cost calculator
- Pay-per-mile insurance calculator
- How to use the pay-per-mile calculator
- How do insurance companies calculate pay-per-mile cost?
- Companies that offer pay-per-mile insurance
- How accurate is the pay-per-mile calculator?
- How to save with pay-per-mile insurance
- Factors that affect pay-per-mile insurance costs
Pay-per-mile car insurance cost calculator
The pay-per-mile calculator uses an estimated base rate provided by several pay-per-mile car insurance companies and an estimated per-mile rate. The combination gives the total monthly rate estimate.
Keep in mind that rates vary by insurance company. Additionally, your mileage rate will change based on how much you drive during the month.
Use the pay-per-mile calculator to estimate your base and mileage costs. Then, compare rates with a traditional policy to see which is right for you.
Pay-per-mile insurance calculator
Base monthly rate
$25
Cost per mile
$0.05
Estimated monthly mileage
600How to use the pay-per-mile calculator
To use the calculator, simply enter your average monthly miles and use the base rate and per-mile rate to see how much you would pay,
Remember that your actual miles driven will change monthly, so your rate will also change.
The calculator will combine this information to estimate your monthly auto insurance rate.
How do insurance companies calculate pay-per-mile cost?
Pay-per-mile auto insurance has two parts. First, there is a set monthly base rate. The insurance company determines this rate based on factors like your driving record, age, and vehicle.
The second part of the rate is your mileage. Typically, the insurer uses an app on your phone or a plug-in device to monitor your mileage. That mileage is then charged at a specific per-mile rate.
For example, let’s say that your base rate is $35. If you pay $0.05 a mile and drive 100 miles, the charge is $5. The base and mileage rates are combined to form your monthly cost. So, you would pay $40 that month. However, if you drive 200 miles the next month, your combined rate would be $50.
Companies that offer pay-per-mile insurance
Although some insurers, like Metromile, exclusively offer pay-per-mile insurance, some larger companies also offer usage-based insurance in addition to traditional policies.
Some of these companies also offer straight per-mile insurance, while others may monitor other driving habits in addition to miles. USAA, for example, combines per-mile rates with factors like speed and braking habits.
Here’s a list of companies currently offering some form of pay-per-mile insurance:
- Metromile
- Allstate
- Nationwide
- USAA (military only)
- Mile Auto
How accurate is the pay-per-mile calculator?
Pay-per-mile insurance rates vary by driver. While the calculator estimates what you’ll pay for usage, rates depend on personal factors and miles driven.
For example, a driver with a bad driving record will pay a higher base rate than one with a clean record. In addition, the miles you drive each month change and affect your rate.
The calculator provides a rate estimate. Your insurance company will be able to provide a more accurate rate.
How to save with pay-per-mile insurance
The best way to save with pay-per-mile insurance is to only drive when necessary. The fewer miles you drive, the lower your cost. Keep in mind that you’ll still have to pay your base rate, no matter how many miles you drive.
The way you drive may also affect rates or discounts. Some insurers consider driving behaviors when monitoring your mileage. When and where you drive, hard accelerating, hard braking, and using your phone while driving may affect insurance rates.
"These plans can be a good option for a consumer who doesn't drive much, but they need to know that you can self-report your mileage. Insurers are double-checking the accuracy of your reporting with mined data, including data from oil change businesses, [and more]," Bach says.
Additionally, you can save money on the base rate by looking at your personal factors. For example, maintaining a clean driving record and improving your credit score decrease auto insurance rates.
Factors that affect pay-per-mile insurance costs
Your mileage isn’t the only factor affecting pay-per-mile insurance rates. In addition to miles driven, the insurer charges a monthly base rate that takes into account personal factors.
The base rate of your policy is calculated using traditional factors, such as:
- Age — Younger drivers lack experience and are more likely to be in an accident.
- Driving record — Traffic violations indicate a lack of attention and a higher chance of an accident.
- Credit score — Drivers with lower credit scores tend to file more claims and are less likely to pay for damages out of pocket.
- Vehicle — Expensive or luxury vehicles are more costly to repair, increasing insurance rates.
- Location—Drivers who live in high-crime or high-traffic areas pay higher rates because their vehicles are more likely to be stolen or damaged.
- Marital status — Married drivers are seen as more responsible and safer drivers.
Gender — Statistically, male drivers have higher insurance rates since they are riskier drivers.
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