Best Pay-As-You-Go Auto Insurance Companies (2024)

Nationwide is our winner overall for having the best pay-as-you-go insurance company because coverage is available in more states than any other provider. 

If you work from home or don’t drive often, start comparing the best pay-as-you-go auto insurance companies to get cheaper rates and low-mileage discounts. Nationwide SmartMiles takes the top spot because it’s available in 44 states, although Allstate Milewise has the lowest rates for high-mileage drivers. Worried about tracking devices? Mile Auto only asks for a picture of your odometer to set your monthly rate.

Before signing up for any pay-as-you-go policy, read the fine print and understand the terms and conditions. There may be restrictions on how much or where you can drive, and some companies may not insure high-risk drivers or certain types of vehicles.

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Metromile was recently acquired by Lemonade, a high-tech home and pet insurance company that is expanding into auto insurance. With the merger, Metromile intends to extend coverage to more states in the future, which could make it one of the best pay-as-you-go car insurance companies near you. Read our Lemonade auto insurance review to learn more.

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#1 – Nationwide: Top Pick Overall

Pros

• Availability: Coverage in 44 states, more than any other pay-as-you-go insurance company
• Low rates for long road trips: Mileage tracking is capped at 250 miles per day
• Rewards safe drivers: Safe drivers earn an additional 10% after the first renewal

Cons

• Not in every state: Not available in AK, HI, LA, NC, NY, or OK
• Better usage-based rates: Drivers can save more money with Nationwide SmartRide 

#2 – Allstate: Cheapest For High-Mileage Drivers

Pros

• Low rates for long road trips: Mileage charges capped at 250 miles per day
• Low rates for high-mileage: Milewise Unlimited program gives higher-mileage drivers a chance to save
• Unique perks: Drivers can earn Allstate Rewards points for signing up and activating their account

Cons

• Not in every state: Only available in 21 states
• Rate increases: Bad driving habits can increase rates in some states

#3 – Mile Auto: Best For Privacy Concerns

 

Pros

• No data tracking: Does not use a plug-in device to track driving habits or location
• Cheap rates: Competitively low rates in states where coverage is available
• Additional coverage: Offers roadside assistance and rental car reimbursement

Cons

• Not in every state: Only available in 11 states
• Charges for road trips: No daily or monthly mileage caps

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#4 – Root: Best For Roadside Assistance

Pros

• Free roadside assistance: Roadside assistance included in every insurance policy
• Additional coverage: Offers rental car and rideshare reimbursement coverage
• Discounts: Additional discounts for vehicles with automated steering features

Cons

• Not in every state: Only available in 34 states
• Does not cover high-risk drivers: Must have a good driving record to be eligible for coverage

#5 – Metromile: Best Mobile App

Pros

• Pay-as-you-go pioneer: Exclusively designed for low-mileage drivers
• Hi-tech perks: Mobile app offers additional features that go beyond trip management
• Potential for growth: Recent merger with Lemonade could expand coverage options in the future

Cons

• Not in every state: Only available in AZ, CA, IL, NJ, OR, PA, VA, and WA
• Requires mobile phone: Plug-in device always requires cell phone service to track mileage

#6 – Hugo: Best For Infrequent Drivers

 

Pros

• Flexible premiums: Multiple payment options, including micropayments and payment plans
• Flexible policies: Policies can last for months, weeks, or as few as three days
• Flexible coverage: Drivers can turn off coverage and pay nothing when they’re not driving
• Immediate coverage: Provides same-day coverage and proof of insurance

Cons

• Not in every state: Only available in 13 states
• Only offers standard policies: Coverage limited to liability, collision, and comprehensive insurance

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#7 – Progressive: Biggest Discounts For Safe Drivers

Pros

• Rewards safe drivers: Safe driving habits can lead to substantial discounts
• Quick sign-up: Easy enrollment process through mobile app
• No long-term tracking: Stops tracking driving habits after the testing period

Cons

• Rate increases: Automatically tracks driving habits with mileage, which can raise rates
• Limited discounts: Initial participation discount only available to new customers

#8 – Noblr: Best For Military Families

 

Pros

• Additional coverage: Offers rental car reimbursement and roadside assistance coverage
• Hi-tech perks: Mobile app offers real-time feedback on driving habits
• Savings account: Drivers have the potential to earn money back with the Noblr subscriber savings account

Cons

• Not in every state: Only available in AZ, CO, LA, NM, OH, PA, MD, and TX
• Exclusive for military drivers: Only available to military members and their immediate families

How Pay-As-You-Go Auto Insurance Works 

Pay-as-you-go auto insurance is often called pay-per-mile insurance since drivers only pay for the miles they drive daily or per month. It’s the best kind of auto insurance for infrequent drivers as some companies sell short-term coverage for three days or three weeks. 

Local pay-as-you-go auto insurance companies will also offer uninsured/underinsured motorist (UM/UIM) and personal injury protection (PIP) to meet state laws, but you won’t always find additional coverages like rideshare insurance or roadside assistance.

Learn More:

• Root Auto Insurance Review
• Metromile Auto Insurance Review
• Noblr Auto Insurance Review

The Difference Between Usage-Based Insurance vs. Pay-As-You-Go

Usage-based auto insurance (UBI) and pay-per-mile coverage are similar in many ways. Both provide state minimum and full coverage policies, and both often require plug-in devices to track driving behavior to determine rates, but UBI only offers a discount and still charges a monthly or annual rate based on demographics like age and gender.

The biggest difference between the two is the pay-as-you-go feature. Only pay-per-mile coverage allows drivers to pay rates solely based on miles driven, sometimes per trip as with Allstate Milewise.

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Cost of Pay-As-You-Go Auto Insurance 

Drivers don’t have to worry about the typical factors that affect auto insurance rates with pay-as-you-go insurance because premiums depend on miles driven. Insurance companies track mileage through a device installed in the car or through self-reporting. The plug-in device communicates with the mobile app on your phone so drivers can see how rates change with each trip.

The calculation for pay-as-you-go auto insurance entails base rate + (miles covered in a month × per mile rate). So if your base cost is $50 monthly, your per-mile charge is $.04, and you travel 300 miles, you would spend $62 that month.

Out of the best pay-as-you-go auto insurance companies on this list, Metromile has the lowest rates of $29 monthly, but the cost per mile varies by state.

Nationwide SmartMiles charges $60 monthly, which is higher than most companies, including Mile Auto, which charges $48/mo, and Allstate Milewise, which only costs $30/mo. However, drivers in more states are likely to find and qualify for affordable pay-as-you-go insurance with Nationwide.

Pros and Cons of Pay-As-You-Go Insurance Coverage

Many pay-as-you-go auto insurance companies are new, not verified by A.M. Best or the Better Business Bureau, and don’t operate in many states. However, many drivers are using these companies to find an insurance policy that better suits their lifestyle.

Here is a quick guide on the pros and cons of this type of car insurance.

Pros

• You only pay for the miles you drive.
• The policy saves you money on your car insurance rates.
• Compared to traditional policies, car insurance by mileage provides drivers with greater flexibility.
• Drivers with low mileage can save regardless if they have any driving offenses or at-fault claims.

Cons

• Pay-per-use auto insurance is unavailable in some states.
• There may be penalties for exceeding your allotted mileage.
• Pay-as-you-go auto insurance companies do not have many policy or discount options.
• Your insurance bill may vary each month, making budgeting and comparing quotations more difficult.

If you’re unsure if the low-miles car insurance is right for you, ask your provider about a test drive. It can offer you a reduced rate for a limited amount of time so that you can try out the service.

Bottom Line on The Best Pay-As-You-Go Auto Insurance Companies

Nationwide SmartMiles is available in more states, allowing more drivers to save money with pay-as-you-go auto insurance. However, if you live in a state where Mile Auto, Metromile, or Hugo Insurance are available, you will get more flexible coverage. Further, Mile Auto is the only company on this list that does not use a tracking device for drivers concerned about data breaches. 

Pay-per-mile insurance may not be the best option for everyone, but it is worth considering if you don’t drive frequently, especially when Allstate Milewise offers an unlimited policy. You may also want to look at Allstate Milewise and Progressive Snapshot for good driver auto insurance discounts to help lower rates for higher-mileage drivers.

The best way to find cheap pay-per-mile car insurance companies is to compare auto insurance quotes online and make sure you choose a policy that best fits your needs.