Every car owner wants to find a way to save on auto insurance. After all, the state requires that you have it, so you want to pay as little as possible while not sacrificing critical coverage.
If you have been shopping around for cheaper auto insurance options, Metromile may be one you stumbled across. Their solutions are intriguing, and they offer insurance premiums based solely on how many miles you drive – an incentive for those who drive fewer miles per year.
What is Metromile? And Why is it Becoming a Popular Option?
Yes, Metromile is a legit insurance program.
It launched in San Francisco back in 2011, and the company sells car insurance to those who want a pay-by-the-mile insurance program. By 2019, Metromile was authorized in eight states, including California, Arizona, Illinois, New Jersey, Oregon, Virginia, Washington, and Pennsylvania.
The ideal Metromile client is one that drives under 10,000 miles annually, and who wants to save hundreds per year on their insurance premiums in the process.
How Does Metromile Save you Money – and is it Worth it?
One big question on consumers minds is how much it costs, and how much a person can save if they were to make the switch.
For starters, Metromile is not strictly based on mileage. You have other fees added into your total premium that you should consider. Right now, Metromile has a flat rate you pay per month, which is $40. From there, you are charged $0.05 per mile driven.
If you drove 500 miles that month, you would have $40 for your fee plus $25 for the mileage, which comes out to $65 per month.
There is a Catch on Your Monthly Fee
While you have a flat monthly fee of $40, that fee can change if you have infractions on your driving record, your age is in a danger zone, and the area you live in has a higher rate of accidents or vehicle thefts; therefore, you may pay more than the $40, but you do not pay less than the $40 rate.
Do You Get the Same Coverage as Other Insurance Companies Not Charging by the Mile?
Metromile does offer the same insurance options as other carriers, including property damage, underinsured and uninsured motorist coverage, and bodily injury. You also have comprehensive and collision, and you can assign deductibles ranging from $250 to as much as $1,000.
Metromile also has a 24-hour claims service available, seven days per week, and you can add roadside assistance to your policy.
How Does Metromile Know How Many Miles I Drive Each Month?
Metromile uses the Metromile Pulse. It plugs into the diagnostic port of your car, the same port your mechanic uses when looking for a diagnostic code to troubleshoot repairs. The system then sends the mileage data over to Metromile, and you can check on your mileage using your online account portal or the app on your mobile phone.
One nice thing about the Pulse system is it also monitors vehicle health, letting you know any error codes it picks up. Furthermore, Pulse notifies you if your vehicle is on the street but needs to be removed for snow plowing or even street cleaning services in major metropolitan cities.
What if I Take a Road Trip One Month – Will My Insurance Skyrocket?
Metromile realizes that people go on random road trips, and that single trip doesn’t reflect driving habits. Therefore, they may give you a grace period of mileage, and you can always let the team know the spike for a weekend was just one road trip and not a habit.
If, however, you go on weekend getaways frequently, Metromile will consider those in your average when charging you per mile. So, you need to consider your mileage before you head out – and how that might affect insurance premiums next month.
Do You Qualify for Metromile Insurance?
Qualifying for Metromile coverage is like any other insurance company. You will need a credit history check, the insurer will review your driving record, and you may pay more if you have past accidents, speeding tickets, or any DUIs on your record.
The per mileage rates may vary depending on age, credit, and poor driving history too – so you and your neighbor could have vastly different rates.
Lastly, you cannot have an older vehicle without an OBD-II port. Most cars made in the past 20 years will have these ports, so rarely does a consumer not have them.
Conclusion: Is Metromile Worth it?
Metromile could be the answer you’ve been looking for if you want an insurance company that considers how much you drive. Likewise, if you have a good driving record, clean credit history, and you are not a risk factor age group, those lower miles definitely save you hundreds each year on car insurance. Most insurance companies offer lower premiums for fewer miles driven annually, but they tend to stop those discounts at 10,000. Therefore, even if you drove only 2,000 miles per year, you would not see any significant savings.
With Metromile, you are rewarded for keeping low miles, and it may work best for those who work from home or a stay-at-home parent that rarely uses their vehicle, needs coverage for when they do, but doesn’t want to pay full price each year just to cover that family car.