We’re always looking for ways to save money and one of the best ways to save money is to examine your monthly expenses. One of the recommendations that is pretty common budget saving advice is to check on your auto insurance costs. In fact I recommend doing so about every 6 months to a year.
But, what if there was a way to save huge that you didn’t know about? Sure, we’ve all heard of bundling deals, ‘safe driver’ discounts, and other ways to save, but what if you only paid for the miles you drove?
Metromile, our sponsor, reached out to me to share information about how they work and as soon as I understoof their concept I was hooked. The idea is simple-pay for the miles you drive, and only the miles you drive.
Whether you work from home, learned long ago to ‘bundle’ your errands to save on gas costs, live in a metro area, or if you don’t travel by car every day this is a boon for your bottom line. You could save tons of cash just by switching to Metromile.
Below I share the questions I had when I first started investigating and the answers I found out about how Metromile works and why it just may be a way for you to save big.
Wouldn’t paying per mile be more expensive?
In a word: no. Metromile has done their research. They know that low mileage drivers are paying more for their insurance because of higher risk and higher mileage drivers.
Did you know that 65% of drivers pay higher premiums to subsidize riskier drivers?
Were you aware that your accident risk increases with the number of miles driven?
According to their research both these things are true. So, if you don’t fall into those categories-why are you paying for someone else’s risks and mistakes? Now you don’t have to.
Who is Metromile for?
This innovative way to buy car insurance won’t be for everyone, but it will help some of you save. It’s designed specifically for drivers who clock in less than 10,000 miles a year.
How much does Metromile cost?
I know you’re thinking there’s a catch. I thought that, too. But essentially what they’re doing is smart business. They’re only serving a segment of the driving population- those low mileage drivers, most often taking public transportation drivers, stay at home most days drivers, and homebody drivers- who are paying more than they should.
With Metromile you pay a low base rate and then a per-mile rate. You get the same coverage you’d get elsewhere and the policy is underwritten by a major insurance company.
The nitty gritty? Metromile shared that their average base rate is $45-50 and the per mile rate is usually around 5-7¢. Your actual mileage may vary. 😉
How much can you save?
That really depends on your current premiums and how much you drive, but Metromile shares the average customer saves about $500 per year.
What about road trips?
No, you don’t have to give up those day trips or those monthly visits to family that lives far away. Instead you’ll just be charged per mile up to 150 miles-after that it’s free. So the most you can be charged is for 150 miles/day. That means you’ll actually be saving a ton of dough on those long road trips, too!
How does it work?
Metromile uses data gathered from Metromile Pulse, an OBD-II device that plugs into your car’s computer system. Yeah, I don’t know what that means either, but I do know in layman’s terms it counts your miles using your car’s computer (so no way to mess it up!).
What else does Metromile do?
Not only is it a great service to save you money on your car insurance-it can also help you avoid parking tickets, track your trips, and so much more.
For those of us who are self-employed or get reimbursed for mileage you’ll find the trip tracker is an invaluable tool to help you track your costs and expenses from those short trips around the corner to those long road trips, too.
It can even tell you what your car is trying to say with that warning light! That’s an invaluable tool to help you keep your car running great.
Most of this is done via the Metromile apps, available on iOS and Android.
Of course you can keep track of your savings, insurance costs, and more right from your phone.
But, there’s more! In select locations you can even get notices to remind you to move your car on street sweeping days.
Where is it available?
Per-mile insurance is currently available in California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington, but they’re expanding! You can head to the Metromile site to see if your zip code is served and to get a free insurance quote or join the Metromile waitlist.
I’d love to know what you think of this innovative service. Share your thoughts with my on the blog or via email. Would love to know if you’d use Metromile’s service.
Kelly
Disclosure: This is a sponsored post on behalf of Metromile.
