Is Metromile Legit? Does it Save You Money?

Last Updated on January 26, 2026

Metromile is a legitimate auto insurance company (now part of Lemonade) that prices your policy using a pay-per-mile model. If you drive far less than the average American, pay-per-mile insurance can save you money—sometimes significantly. But it’s not automatically cheaper for everyone.

If you found Metromile while shopping for lower rates, the big questions are: Is it real? How does it work? And when does it actually beat traditional auto insurance (including the “low-mileage discount” some insurers offer to drivers who don’t drive much)?

Quick Answer: Is Metromile Legit?

Yes. Metromile is a real, regulated insurer that offers pay-per-mile auto insurance. Today, Metromile operates as a Lemonade company, and new quotes are typically handled through Lemonade’s quoting flow.

Metromile’s pay-per-mile policies are currently offered in a limited number of states. If you’re outside the service area, you’ll need to compare other options instead (including traditional carriers or other usage-based car insurance programs).

Where Is Metromile Available?

Availability is one of Metromile’s biggest limitations. As of now, Metromile writes pay-per-mile policies in:

• Arizona
• California
• Illinois
• New Jersey
• Oregon
• Pennsylvania
• Virginia
• Washington

How Metromile Pricing Works

Metromile is often described as “insurance based solely on miles,” but in reality it’s a little more nuanced.

Your monthly cost is usually made up of:

• A base rate (a flat monthly amount you pay even if you drive zero miles)
• A per-mile rate (a few cents per mile, based on how much you actually drive)

Like traditional insurance, that base rate and per-mile rate still depend on standard pricing factors—such as your location, vehicle, claims history, and (in many states) credit-based insurance factors. If you want to understand why mileage matters in the first place, see how total mileage driven impacts auto insurance rates.

A Simple Monthly Cost Formula

You can estimate your Metromile-style bill like this:

Monthly Premium = Base Rate + (Per‑Mile Rate × Miles Driven)

Many pay-per-mile plans also include a daily mileage cap (so a single long day of driving doesn’t create an extreme per-mile charge).

Example Costs

Because rates vary by driver and state, the best way to know your true price is to get a quote. But here are easy examples to show how the math works:

• If you drive 0 miles in a month: you generally still pay the base rate.
• If you drive 500 miles in a month: your bill is the base rate plus 500 × your per-mile rate.
• If you drive 1,500 miles in a month: per-mile costs add up quickly—at that point, traditional insurance often wins unless your base/per-mile pricing is unusually low.

Break-Even Tip: When Does Pay-Per-Mile Beat Traditional Insurance?

Here’s the fastest way to decide if pay-per-mile is worth your time:

• Step 1: Find your current monthly premium (what you pay now).
• Step 2: Get a Metromile quote showing your base rate and per-mile rate.
• Step 3: Solve for miles: (Current Premium − Base Rate) ÷ Per‑Mile Rate

If your typical monthly mileage is below that number, pay-per-mile may be cheaper. If you’re consistently above it, a traditional policy (or a standard low-mileage discount) will often cost less.

Do You Get the Same Coverage as Traditional Auto Insurance?

Yes—pay-per-mile changes how your premium is calculated, but you can still build a normal auto policy with the coverages most drivers expect, including:

• bodily injury liability
• property damage liability
• uninsured/underinsured motorist coverage (availability varies by state)
• comprehensive and collision

You also typically choose your deductible and can add extras like roadside assistance depending on what’s available in your state.

How Metromile Tracks Your Miles

Metromile traditionally tracks mileage using a device called Pulse that plugs into your car’s OBD‑II port (the same diagnostic port mechanics use). Most vehicles from the past few decades have an OBD‑II port, but some older vehicles may not qualify.

Pay-per-mile only makes sense if you’re comfortable with the tracking requirement. It’s a good idea to treat this like any other usage-based insurance: understand what’s collected, what’s optional, and what you’re agreeing to before you bind coverage.

Does Metromile Track Location?

Pay-per-mile insurers may use telematics devices that can capture more than just miles. If privacy is a top concern, ask exactly what data is collected, how long it’s stored, and whether any settings can limit long-term storage.

What If You Take a Road Trip?

Road trips don’t automatically “ruin” pay-per-mile, but they can change your bill for that month. If you only take one or two trips a year, it may still be worth it overall.

If you’re planning frequent long drives, compare your expected mileage costs against a traditional policy first. You may also want to read our guide on car insurance for road trips, especially if you’ll be crossing state lines or driving a borrowed/rental vehicle.

Do You Qualify for Metromile?

Qualifying is similar to most insurers: your driving record, claims history, and other underwriting factors still matter. If you’re worried about how credit plays into your quote, start here: does credit score affect car insurance rates?

Metromile tends to make the most sense for:

• Remote workers, retirees, or households with a second vehicle that’s driven occasionally
• Drivers who consistently stay well under average annual mileage
• People who want a pricing model that responds to actual monthly driving

If you’re mainly shopping because you want a cheaper policy (not necessarily pay-per-mile), consider comparing quotes broadly too—including options that advertise no credit check auto insurance quotes in certain situations.

FAQs on Metromile Pay-Per-Mile Insurance

Conclusion: Is Metromile Worth It?

Metromile can absolutely save you money if you’re a genuinely low-mileage driver and your base + per-mile pricing comes in below what you’d pay with a traditional policy. But it’s not a magic discount—if you commute daily, drive for work, or regularly take long trips, pay-per-mile can become more expensive fast.

The best move is to (1) estimate your real monthly mileage, (2) get a quote showing your base and per-mile rate, and (3) calculate your break-even point. If you’re under it most months, Metromile is worth a serious look.