Metromile is the cheapest car insurance provider in the U.S. with an annual average price of $662 per year, compared to the average annual rate across all providers of $1,070.47, according to the latest 2019 data from the National Association of Insurance Commissioners (NAIC).1 Metromile’s usage-based pricing system provides many perks for low-mileage drivers who drive less than 10,000 miles a year.
If you’re a Metromile customer, your rate will be broken down into two parts: a monthly base rate as low as $29 and a per-mile rate (a few cents for every mile driven).
Both rates will be personalized depending on different factors, including your age, your vehicle’s age, and your driving habits. Such driving habits include your average speed and time spent per trip, the times and days you drive the most, and your phone use while driving. Metromile collects this information using a telematic device called Metromile Pulse that plugs into your car’s onboard diagnostic port (OBD).
Here’s a sample rate:
||What you’ll pay
|Per mile rate
|Total mileage rate
Since your base rate is the product of your daily rate multiplied by the number of days in the month, you’ll save money during shorter months. And if you spend a period of time without driving, you will only be responsible for paying your monthly base rate.
Similarly, if you drive more than the typical number of miles to be considered “low-mileage” (about 10,000 miles per year, or 27 per day), your rates will not increase. Metromile does not charge you for any miles you drive over 250 miles per day or over 150 miles per day in New Jersey. So if you have to take a long road trip, don’t worry about the cost of your insurance.
Here’s an example of the money you could save with Metromile as a low-mileage driver:
|Miles per year