Best Monthly Auto Insurance

Allstate promises affordable coverage and a wide range of auto policies. Accessible local agents and easy-to-bundle policies are some of the reasons 16 million people use Allstate. Learn more about pay-per-mile and non-owner insurance from Allstate below.

Allstate Milewise

Allstate’s pay-per-mile program, Milewise, offers the same coverage and claims service as its other auto insurance products. It charges a daily base rate — for example, $1.50 — plus a per-mile rate — for example, 6 cents — for covered vehicles.

To participate in Milewise, you need a telematics device that plugs into your onboard diagnostic port (OBD-II port) and transmits data through a cell modem. The Milewise device is shipped to you on your policy’s effective date. Once plugged in, you will need to check the Allstate app or website to ensure that your trips are being recorded. Each trip should appear within 48 hours.

The Milewise device collects information on driving speed, miles, time of day, driving events, and location. If you don’t install the Milewise device, Allstate will charge you a default mileage use rate of 40 miles each day.

Allstate’s mobile app helps you budget your Milewise policy. You can access your policy details, account balance, mileage, and safe driving status. You’ll also be able to review trips at a glance, look over your weekly spending, and set savings goals to maximize your Milewise savings. On top of that, Milewise includes access to personalized driving feedback and vehicle diagnostics through Allstate’s car health program.

Allstate doesn’t list where Milewise is available, so contact an agent to see if you qualify for the program.

Multi-vehicle Households

Allstate lets you choose whether each vehicle on your policy is classified as pay-per-mile or traditional unlimited mileage. Other companies, like Nationwide, may require all vehicles on the policy be classified the same way. It’s a good option for households that have an extra vehicle they drive less frequently.

Whereas most insurance policies charge the same premium every month, Milewise rates are variable and can change from month to month depending on how much you drive and what your rates are. Much like a traditional auto insurance policy, Milewise bases rates on factors such as driver age, vehicle type, and driver profile and history. Car insurance for young drivers is more expensive, as are premiums for drivers with poor credit.

Drivers with a clean record will have access to cheaper car insurance rates compared to those with tickets or accidents on their driving record. This is because having an at-fault accident on your record increases the likelihood of filing future claims, which can result in higher insurance premiums.  Depending on your state, your rates may fluctuate up or down based on your driving behavior. They can increase if you go over 80 mph, brake suddenly (slowing down more than eight mph in one second), or drive between 11 p.m. and 4 a.m.

Allstate recommends you keep your tracking device plugged in even for unlimited vehicles so you can receive personalized driving feedback, account details, and Allstate rewards points.

Non-Owner Insurance

Allstate’s non-owner car insurance benefits drivers who wish to pay month-to-month for limited coverage. Consider non-owner car insurance if any of the following statements is true:

• You rent cars often.
• You use car-sharing services or borrow a friend’s car frequently.
• You want continuous coverage as you reinstate your license or file an SR-22/FR-44.

Allstate’s non-owner policy provides liability insurance only; the policy covers bodily injury and property damage to others. It will not cover damage to your car, injuries, or commercial driving activities.

Established in 1925, Nationwide is one of the largest insurance companies in the world. From humble beginnings as the Farm Bureau Mutual Automobile Insurance Company in Ohio, Nationwide grew into a car, motorcycle, homeowners, pet, farm, life, and commercial insurance company. It receives financial confidence ratings from Moody’s (A2) and Standard & Poor’s (A+), the fifth highest of 21 ratings across both lists. Nationwide’s solution for low-mileage drivers is its pay-per-mile program, SmartMiles.

How SmartMiles Works

Like most usage-based auto insurance policies, you’ll pay a base rate and a variable rate assessed per mile. When you sign up with an agent you will estimate your annual mileage to approximate your first monthly payment. Your base and mileage rates adjust based on mileage data from the first billing period, but will not vary after the first month unless the policy changes.

SmartMiles uses a small in-car device for mileage tracking. Plug the device in within five days of receipt and keep it plugged in for as long as you enroll.

Safe Driving Discounts

SmartMiles gives you more control over your auto insurance costs than Nationwide’s traditional policies. You decide how much you drive and, therefore, how much you pay. You can also earn up to a 10 percent safe driving discount at the first renewal, based on behavioral data collected during the first term of your participation in SmartMiles.

Nationwide’s SmartRide program is another telematic program that works with SmartMiles. SmartRide is a safe-driving discount program where customers can earn up to a 40 percent discount. There are two ways to collect the data needed to enroll in SmartRide: via the driver-based mobile app or via a vehicle-based SmartRide device if another vehicle in the policy has SmartMiles. SmartRide measures four factors:

• Number of miles driven during a trip
• Sudden decreases or increases in speed
• Driving between midnight and 5 a.m.
• Length of idle time during a trip

If you need to ensure a low-mileage vehicle, use SmartMiles on the low-mileage vehicle and the SmartRide device for all other vehicles. SmartRide only collects data for one to two policy terms for a 15 percent participation discount upon enrollment and up to a 40 percent discount at first renewal. The average driver receives a 22 percent discount using SmartRide.

Road Trip Exception

SmartMiles works best for drivers who do little to no day-to-day driving. Even so, your rate shouldn’t skyrocket if you put more miles in than usual. Nationwide caps its SmartMiles variable rate at 250 miles, also called a road trip exemption. Only the first 250 miles count in a single day — Nationwide will not charge you for any miles driven above 250.

Lemonade is a pay-per-mile car insurance provider that primarily positions itself for people who drive fewer than 10,000 miles per year. If you drive infrequently and don’t mind an app tracking your driving habits, check out Lemonade’s usage-based car insurance.

Tracking Your Mileage

Lemonade tracks your mileage using a complimentary telematics device. Like the devices Allstate and Nationwide provide, it plugs into your OBD-II port and transmits driving data through a cell modem.

The device conveniently calculates your mileage, the main factor Lemonade uses to determine your rate. Lemonade provides you information on your car’s health, location, fuel economy, and trip data. Its app notifies you if the device detects an error code from the vehicle related to an engine, exhaust, or other systems. The device also acts as a GPS, but you can disable the GPS function from the online dashboard (this will also disable Lemonade’s smart driving app features).

Keep the device plugged in to calculate your mileage. Lemonade adds a no-signal charge to your monthly bill to cover any miles you may have driven if it does not receive a signal from your device. Don’t worry if you’re traveling — contact Lemonade ahead of time. Lemonade will set a grace period and will not charge the no-signal fee.

How Lemonade Determines Your Rate

Factors that influence your Lemonade insurance rates include vehicle make/model, vehicle theft rates, driving history, claims history, coverage changes, and more. These factors look at the performance of larger groups, so their impact on your specific rate can change over time.

Certain states have laws and regulations that may impact rates as well. In some states, Lemonade uses your driving habits, in addition to your mileage, to calculate your rates. In Arizona, Illinois, and Oregon, Lemonade uses average speed, time of day, and day of the week to determine the quality of driving. These factors are tracked over time and are not based on individual journeys.

Lemonade Billing

Like most pay-per-mile car insurance providers, Lemonade premium billing includes base and variable rates. You pay your base rate to sign up. At the end of your first month, Lemonade will charge you for your mileage from the first month and the base rate for month two. Expect to pay the base rate regardless of whether or not you drive your car during the month.

In some cases, the first month’s bill will include a prepayment, depending on the requirements for your specific policy. If that happens to you, you’ll receive a credit refund on each of their first five bills. Lemonade does not charge cancellation fees.

GEICO insures over 17 million drivers across the U.S. This auto insurance provider does not have a pay-per-mile policy; however, GEICO will insure a car not in your name under a non-owner insurance policy. The cost of non-owner car insurance policies tends to be less than that of full coverage policies. GEICO’s average non-owner policy runs about $492 each year.

Non-Owner Insurance

At $41 monthly, GEICO’s average rate for a non-owner policy is the cheapest among widely available insurers. (USAA is cheaper, but only available to military members, veterans, and their families).

Discounts for Military Members and Their Families

GEICO offers a military discount of 15 percent if you are on active duty, retired from the military, or a member of the National Guard or Reserves. GEICO also provides an emergency deployment discount to military members deployed in imminent danger pay areas.

These discounts are helpful for people who drive infrequently while deployed.

Rental Car Coverage

A non-owner liability policy will provide coverage for a rental car or car share (like Zipcar). Make sure you confirm with GEICO what rental car coverage is included in your non-owner policy; it’s usually cheaper to get rental car coverage from your insurer rather than from the car rental company. Your GEICO representative will tell you what rental coverage you have in your current policy or if you can add rental coverage to your policy before you travel.