Best Pay-As-You-Go Auto Insurance in California (Top 10 Companies for 2026)

Metromile, AAA, and Allstate have the best pay-as-you-go auto insurance in California.

Whereas most major companies offer a telematics discount for low-mileage drivers, Metromile is one of the few genuine pay-per-mile insurance companies.

It’s not a good pick for California auto insurance if you drive 10,000 or more miles per year, but low-mileage drivers can find significant savings with Metromile.

Our Top 10 Company Picks: Best Pay-As-You-Go Auto Insurance in California

Learn more about the best pay-as-you-go auto insurance companies in California below. Then, enter your ZIP code into our free tool above to find the lowest-costing insurance today.

#1 – Metromile: Top Pick Overall

Pros

• Customizable Pay-Per-Mile Coverage: Metromile offers a variety of ways for drivers to customize their pay-as-you-go coverage, including their deductible amount, level of coverage, and add-ons.
• Easy-to-Use App: The Metromile app – which you’ll use to track your daily mileage – receives excellent reviews for its ease of use.
• Additional Benefits: Using the Metromile app is not just for tracking miles. It also gives you benefits like smart driving insights and vehicle diagnostics through the plug-in device.

Cons

• Higher Rates: Metromile tops our list of pay-as-you-go insurance companies, but it’s not the cheapest. Metromile has higher per-mile rates compared with other companies.
• Limited Coverage Options: You can purchase pay-as-you-go full coverage insurance from Metromile, but there aren’t many add-on options to increase your coverage. See what you can add to your policy in our Metromile auto insurance review.

#2 – AAA: Best Roadside Assistance Plans

Pros

• Safe Driving Discounts: AAA offers 17 discounts, which include savings for safe drivers. See all your discount options in our AAA auto insurance review.
• Roadside Assistance: As a company famous for its roadside assistance, it should come as no surprise that drivers love it. Choose from three roadside assistance plans to find the perfect coverage.
• AAADrive: AAADrive is the company’s usage-based insurance (UBI) program. Low-mileage drivers can save up to 30% with AAADrive.

Cons

• Membership Fees: You need to be an AAA member before you can purchase car insurance. The annual fee is usually no more than $115  per year, but it does add to the overall price of insurance.
• Coverage Varies: AAA auto insurance varies by region. California drivers should check with a representative to see coverage and discount options in their area.

#3 – Allstate: Best for Full Coverage Policies

Pros

• Milewise: Milewise is one of the options for the best car insurance for low-mileage drivers because it offers affordable per-mile rates and a great mobile app.
• Coverage Options: Allstate offers a variety of add-ons so you can get the coverage you want, even if you’re a low-mileage driver. Explore all your options in our Allstate auto insurance review.
• Daily Cap for Road Trips: Milewise caps the number of miles you can be charged for in a single day so you can still take road trips. In California, the daily cap is 250 miles.

Cons

• App Issues and Fees: If the Milewise app fails to report your daily mileage, Allstate will add 40 daily miles to your fees until the issue is resolved.
• Higher Rates: Allstate offers quality California pay-per-mile car insurance, but it comes at a price. Typically speaking, Allstate is one of the most expensive coverage options.

#4 – Safeco: Best for Flexible Payment Options

Pros

• Flexible Payment Options: Safeco makes it easy to manage your insurance needs by offering flexible payment options.
• Wide Range of Coverage: You can purchase a variety of coverage from Safeco, including SR-22, non-owner, and gap insurance.
• Generous Discounts: Safeco’s generous discounts earn it a spot as one of the top California auto insurance companies.

Cons

• Usage-Based Mile Tracking: Safeco’s low-mileage option is technically a telematics plan. It not only tracks your mileage but also your driving behaviors like braking and speeding.
• Weak Claims Reviews: Drivers frequently report problems with the Safeco claims handling process. Read more about Safeco’s claims process in our Safeco auto insurance review.

#5 – American Family: Best for Costco Members

Pros

• KnowYourDrive: KnowYourDrive offers savings of up to 20% for low-mileage drivers who consistently practice safe habits on the road.
• Costco Policies: American Family writes auto insurance policies for Costco, which helps warehouse members save.
• Ample Discount Opportunities: American Family has 18 discounts to help drivers find the lowest rates possible. See how many you qualify for in our American Family auto insurance review.

Cons

• Limited Availability: American Family only sells auto insurance in 19 states, and California is not included. However, you can buy American Family insurance through CONNECT, which writes Costco policies for American Family.
• Less Competitive Rates: While it offers excellent coverage, American Family’s pay-as-you-go insurance rates are not the lowest on the market.

#6 – Progressive: Best for Budgeting Tools

Pros

• Name Your Price Tool: Use Progressive’s Name Your Price tool to see coverage options that match your monthly insurance budget.
• Snapshot: While you can’t get direct pay-as-you-go insurance quotes from Progressive, you can sign up for Snapshot. Snapshot rewards drivers for having low mileage with a discount of up to 30%.
• Loyalty Discounts: Progressive automatically applies many of its 13 discounts directly to your account, including savings for being a loyal customer after your first year of coverage.

Cons

• Mixed Customer Reviews: Despite efforts to improve, Progressive struggles to keep customers. See what Progressive is doing to improve in our Progressive auto insurance review.
• Unexpected Rate Increases: Many Progressive drivers report unexpected rate increases when their policy is renewed, even though nothing has changed about their situation.

#7 – Nationwide: Best for UBI  Savings

Pros

• SmartMiles Program: Nationwide’s SmartMiles is an excellent option for pay-as-you-go insurance for young drivers, especially if they want just enough coverage to meet California auto insurance limits.
• Safe Driving Discount: Drivers who sign up for SmartMiles may receive a 10% discount on their first policy renewal for being a safe driver.
• SmartRide Program: If California pay-per-mile auto insurance doesn’t sound like a perfect fit, you can still save for being a low-mileage driver with SmartRide. Learn more in our Nationwide auto insurance review.

Cons

• SmartRide Can Increase Rates: SmartRide is one of the few UBI programs that doesn’t guarantee your rates won’t increase.
• Can be Expensive: Nationwide is usually an affordable option, but it’s not the cheapest option for drivers with a DUI on their record.

#8 – Travelers: Best Customer Service

Pros

• IntelliDrive: Low-mileage drivers can save up to 30% with IntelliDrive.
• Responsible Driver Plan: Travelers’ Responsible Driver Plan bundles accident forgiveness, minor violation forgiveness, vanishing deductible, and a deductible waiver into one convenient package.
• Excellent Customer Service: Travelers has a reputation for offering superb customer service. See what customers say in our review of Travelers auto insurance.

Cons

• Limited Digital Options: Travelers focus on an agent-to-customer approach for managing policies, so it doesn’t have some of the digital options other companies offer.
• Higher Rates for Bad Credit: If your credit score is on the low side, you’ll find cheaper coverage at another company.

#9 – Liberty Mutual: Best for Unique Coverage Options

Pros

• Unique Coverage Options: Liberty Mutual offers an excellent selection of coverage options, including original parts replacement coverage and gap insurance.
• RightTrack Program: Low-mileage drivers can save up to 30% with Liberty Mutual’s RightTrack program.
• Educator Discounts: In an effort to support California educators, Liberty Mutual offers special discounts to teachers. See what Liberty Mutual does for teachers in our Liberty Mutual car insurance review.

Cons

• Higher-than-Average Complaints: Liberty Mutual receives more complaints than expected for a company its size.
• Reduced RightTrack Discount: California low-mileage insurance reviews show that RightTrack discounts drop if not all drivers join the UBI program.

#10 – Mercury: Best for Cheap California Rates

Pros

• Low Rates: Mercury may not be the largest insurance provider, but it offers low rates in California, especially for young drivers. Learn how Mercury keeps its rates low in our Mercury auto insurance review.
• MercuryGo: Mercury’s UBI program MercuryGo offers a staggering 50% off your insurance if you practice safe driving habits. One of the behaviors MercuryGo tracks is your total driving mileage.
• Coverage Options: Although minimum insurance is the cheapest option, Mercury offers plenty of ways to increase coverage. Popular choices include rideshare insurance and roadside assistance.

Cons

• Lack of Many Coverage Options: Mercury gives customers a few good add-on choices, but it currently lacks the variety that many of its competitors have. These missing choices include accident forgiveness and a vanishing deductible.
• Some Drivers Pay Higher Rates: Although most drivers see affordable rates in California, some high-risk individuals will see much higher Mercury quotes.

What You Need to Know About California Pay-As-You-Go Insurance

Pay-as-you-go auto insurance is similar to a standard policy with one major exception – your rates are determined by the miles you drive.

Companies like Metromile determine your rates in two parts. The first is a flat fee that you’ll pay per month, no matter what. Then, they’ll decide how much to charge you per mile, usually just a few cents.

Pay-as-you-go policies are a great way to find cheap auto insurance for infrequent drivers, but it’s not for everyone. If you’re not a low-mileage driver or you have periods where you’re driving increases, a traditional policy might be better.

The Benefits of Pay-As-You-Go Auto Insurance in California

Low-mileage drivers typically see lower insurance rates than drivers who spend more time behind the wheel. First, you can compare average insurance rates from our best pay-as-you-go insurance companies below.

CA Pay-As-You-Go Auto Insurance: Monthly Rates by Coverage Level & Provider

Insurance rates are also impacted by your annual mileage. Check below to see how much variation there can be between car insurance quotes based on annual mileage.

California Auto Insurance Monthly Rates by Age, Gender, & Annual Mileage

Of course, your annual mileage isn’t the only factor that affects your auto insurance rates. A driver’s age and the level of coverage they need are also important factors, as you can see below.

California Auto Insurance Monthly Rates by Age, Gender, & Coverage Level

Getting cheap full coverage auto insurance is more difficult, especially for young drivers. However, choosing a pay-as-you-go option from the California auto insurance companies listed above can help you save.

Other benefits from pay-as-you-go insurance aside from lower rates vary by company, but often include personalized driving advice.

Our customer Danielle recently had her car stolen, but thanks to the Metromile app and Pulse device, she recovered her vehicle in only a matter of hours!

Read Danielle’s full story on our blog:

— Metromile (@Metromile) June 10, 2022

While there are some great benefits to low-mileage programs, drivers should make sure they’re fine with being tracked. Some drivers are uncomfortable sharing information with their insurance companies and will have to find a company that offers a more private way of tracking miles.

Pay-As-You-Go Insurance vs. California Auto Insurance Requirements

Unless you live in one of the few states that don’t mandate coverage, all drivers need to meet the minimum auto insurance requirements in their state. In the state of California, it’s illegal to drive without coverage.

Check below to see how much the average driver pays for coverage in some of California’s biggest cities.

California Auto Insurance Monthly Rates by Age, Gender, & City

There are significant variations between cities when it comes to car insurance rates. Regardless of whether you want the bare minimum to satisfy California auto insurance laws or full coverage with all the bells and whistles, you should always compare rates. If you don’t, you likely won’t pick the most affordable company in your city.

More Ways to Get Cheaper California Auto Insurance Rates

There are plenty of ways to find affordable coverage besides learning how to get a low-mileage auto insurance discount. For starters, you can find other discounts that offer similar savings.

Available Discounts for Best Pay-As-You-Go Auto Insurance in California

You can also find other discounts for things like being a claims-free driver or getting good grades. Check below to see what our top companies offer for low-mileage drivers.

Other ways to save on your insurance include steps like lowering your coverage, raising your deductible, and keeping your driving record clean. Of course, one of the most crucial steps is to compare your options with multiple companies.

Save With California’s Best Pay-As-You-Go Car Insurance

Finding affordable coverage as a low-mileage driver can be easy if you shop at the best pay-as-you-go auto insurance companies. Metromile is our top pick in California, but you may find a different company has better coverage options and rates for you.

If you’re ready to find the cheapest low-mileage coverage, enter your ZIP code into our free comparison tool today.