Allstate Milewise Review: How Much Can You Save?
Last Updated on November 12, 2022
Allstate has launched a pay-per-mile car insurance plan called Milewise.
Depending on your mileage, you could save hundreds of dollars per year with Milewise. It’s ideal for low-mileage drivers, people who work from home, or people who do not drive to work.
Based on our research, Allstate’s Milewise could help low-mileage drivers save $30 to $50 per month on car insurance.
Keep reading to find out how Milewise works, how much you can save, and whether or not Allstate Milewise is worth it.
- How Allstate Milewise Works
- Who Should Buy Allstate Milewise?
- Milewise is Only Available in Select States
- How Much Can You Save with Milewise?
- What Does Milewise Cover?
- Manage and View Your Milewise Policy Via the Allstate App
- How Much Does Milewise Cost?
- How Does Milewise Calculate Trip Costs?
- Do the Math to Calculate Savings
- Is Allstate Milewise Worth It?
- FAQs About Allstate Milewise
- Final Word on Allstate’s Milewise
How Allstate Milewise Works
Milewise is a pay-per-use car insurance program from Allstate. You get the same coverage and claims you would get from an ordinary Allstate policy. However, instead of paying a monthly premium, you pay different rates based on your mileage driven.
Allstate calculates your total cost of car insurance based on two factors:
Daily Rate: You pay a fixed rate for each day you have car insurance coverage (say, $1.50), regardless of whether you drive that day.
Per Mile Rate: You pay an extra fee based on the mileage you drive (say, $0.06 per mile). If you don’t drive that day, then you don’t pay any extra per-mile fee.
Based on the example above, a 12-mile drive would cost $2.22 per day. If you consistently drive around 12 miles per day, then you would pay around $67 per month for car insurance with Milewise, based on this estimate.
If you have multiple cars, you can set one car as pay-per-mile and the other as unlimited. If you drive one car for your daily commute, but your spouse walks to work and only occasionally uses the second car, for example, then you can adjust your Allstate policy for optimal savings.
After signing up for Milewise, Allstate sends you a device to track your driving data and vehicle data. This device tracks your mileage and driving habits, then reports this data to Allstate for accurate billing. The device plugs into your vehicle’s diagnostic port, typically located under the steering column.
Alternatively, you can use the Allstate app to track driving habits. The Allstate app tracks mileage and driving habits for accurate billing.
Who Should Buy Allstate Milewise?
Milewise is ideal for certain drivers in certain situations. However, it’s not the right choice for all drivers.
Some of the drivers who could benefit from Allstate Milewise include:
- Anyone who drives less than the average driver (the average driver drives around 14,000 miles per year or 1,167 miles per month / 39 miles per day)
- Stay-at-home parents
- People who work from home or near home
- Anyone who wants greater transparency and control over their insurance costs
Milewise is Only Available in Select States
Currently, Allstate only offers Milewise in select states, including:
- District of Columbia
- New Jersey
- South Carolina
- West Virginia
How Much Can You Save with Milewise?
Allstate’s Milewise offers variable savings depending on your current car insurance premiums, how much you drive, your driving history, and other factors.
Fortunately, Allstate makes it easy to get a custom Milewise quote based on your unique factors.
Here’s how to get a free quote from Allstate’s Milewise:
Step 1) Visit the Allstate quote request form at https://www.allstate.com/auto-insurance/milewise
Step 2) Enter your personal information, including your name, date of birth, and address
Step 3) Enter your vehicle information, including the year, make, model, and VIN (Allstate can help you locate the VIN)
What Does Milewise Cover?
Milewise functions in an identical way to traditional Allstate car insurance. You get the same coverages and limits and the same claim-processing experience.
A typical Allstate Milewise policy comes with the following coverages:
- Bodily injury liability
- Property damage liability
- Personal injury protection
- Uninsured and underinsured motorist
- Medical payments
Manage and View Your Milewise Policy Via the Allstate App
Allstate offers a mobile app that makes it easy to track your Milewise policy, measure how much you save, and see how much you’ve spent on car insurance so far.
Some of the Milewise-specific features within the Allstate mobile app include:
- Quickly access Milewise policy details, including your account balance, miles driven, and safe driving status
- Review weekly spending and set goals
- Review trips at a glance
- Dig into detailed maps and get personalized driving feedback
- See your safe driving trends based on braking, speed, and time of day
- View vehicle diagnostics, get car maintenance reminders, find a mechanic, and schedule repairs (Milewise also includes access to Allstate Car Health)
How Much Does Milewise Cost?
Allstate charges different rates to Milewise for different drivers – just like they charge different rates to different drivers with ordinary car insurance policies.
Here’s how Allstate explains Milewise’s pricing policy:
“When you sign up for Milewise, you’ll receive a Daily Rate and Per-Mile Rate based on factors such as driver age, vehicle type, and driver history – similar to a traditional auto policy.”
In some states, Allstate adjusts its pricing up and down based on driving behavior. If you live in Arizona, Florida, Massachusetts, Minnesota, Missouri, Oklahoma, Pennsylvania, South Carolina, Texas, or Wisconsin, for example, then you may pay higher rates with unsafe driving behavior and lower rates for safer driving behavior.
For the best rates (in states with variable rates), avoid speeds over 80mph, sudden braking (slowing down more than 8mph in one second), and late-night driving between 11pm and 4am.
On days when you don’t drive, you’ll still pay the daily Milewise rate. However, you won’t pay a per-mile rate because you did not record any mileage.
How Does Milewise Calculate Trip Costs?
You can pay a pay-per-mile rate with Milewise. Or, you can set a vehicle to an unlimited plan.
With the pay-per-mile rate, you multiply the miles driven by your per-mile rate for that vehicle.
With the unlimited rate, you pay a daily rate with no additional charges for miles driven.
Allstate typically processes each trip within 48 hours, then deducts the fixed daily rate and pay-per-mile rate from your account automatically.
If the Milewise device does not record a trip, or if it is not installed correctly to record trip data, then you’ll pay a Default Mileage Use fee, which is equal to around 40 miles of driving.
Do the Math to Calculate Savings
Allstate Milewise could save you hundreds of dollars per year. Or, you could pay more with Milewise. To determine your Milewise savings, you need to do some math.
- Let’s say you pay $1,500 per year for full coverage car insurance from Allstate, or $125 per month.
- Allstate gives you a daily rate quote of $2 per day and a daily mile cost of $0.05 per mile for Milewise.
- You drive 20 miles every day in June, and you pay a daily insurance cost of $3 ($2 per day plus $1 in mileage fees), which adds up to $90 per month; you’re saving $35 with Milewise compared to your ordinary car insurance policy priced at $125 per month.
- In November, you drive fewer miles because of the colder weather; you pay the same rates, but you only drive 10 miles per day; your daily Milewise insurance costs $2.50 per day ($2 per day plus $0.50 in mileage fees), or $75 per month, saving you $50 off your ordinary Allstate car insurance policy.
- In April, you get a new job with a longer commute; you’re now driving 80 miles per day, on average; your Milewise premiums rise to $6 per day ($2 per day plus $4 in mileage fees), or $180 per month, which means you’re spending $55 more on car insurance than you did with your ordinary policy.
Is Allstate Milewise Worth It?
Allstate Milewise may or may not be worth it, depending on your mileage and current car insurance premiums.
Things to consider before signing up for Milewise include:
Average Mileage: Calculate your average daily, weekly, monthly, and annual mileage to get an idea of how much you can save with Milewise. Some drivers could save hundreds per year, while others will pay more with Milewise.
Cheapest Insurance Price in Your Area: Allstate may not offer the cheapest insurance in your area. Compare quotes from competing providers in your area to see how affordable car insurance could be. Allstate may dazzle you with huge savings, only for you to find they’re charging 30% higher premiums than competing insurers.
Driver Tracking: Milewise requires Allstate to track your data, including your driving habits, the times of day you drive, your mileage, and other data. Some drivers are uncomfortable with disclosing all of this information to a private corporation.
The Added Stress of Paying for Each Drive: If you sign up for Allstate’s Milewise, you’re paying an additional fee each time you drive your car. You may think twice about going to the grocery store twice in one night. Or, you might avoid a long road trip to save money. Some drivers dislike this concept, while others appreciate seeing the real cost of their driving.
FAQs About Allstate Milewise
Milewise is a unique service for drivers with unique car insurance needs. Our insurance experts get plenty of questions about Allstate Milewise and how it works. Here are some of our answers to our most frequently asked questions.
Final Word on Allstate’s Milewise
Allstate’s Milewise is a pay-per-use car insurance service available in select states. You pay a fixed daily fee, then an additional per-mile rate.
Milewise is ideal for drivers with short commutes, people who work from home, stay-at-home parents, commuters, and anyone who drives significantly fewer miles per year than the average driver.
Based on our research, Allstate Milewise could save you $30 to $50 per month, depending on your driving habits, compared to an average car insurance policy.
To calculate specific Allstate Milewise savings, get a free quote from Allstate today through their online form.