How to Get Cheap Car Insurance for High-Mileage Drivers in 2023

Do you drive more than 12,000 miles per year? If so, you might be paying more for car insurance than you need to. High-mileage drivers face higher premiums because they are more likely to get into accidents and file claims. But don’t worry, there are ways to get cheap car insurance for high-mileage drivers. One of them is pay-per-mile insurance, which lets you pay based on how much you drive. In this article, we’ll explain what pay-per-mile insurance is, how it can benefit you, and how to find the best provider for your needs. We’ll also share some other tips on how to lower your car insurance costs as a high-mileage driver.

Benefits of pay-per-mile insurance

Pay-per-mile insurance is a type of car insurance that charges you a monthly base rate plus a per-mile rate. The base rate is determined by factors such as your age, gender, car model, and credit score. The per-mile rate is based on how many miles you drive each month. The less you drive, the less you pay.

Pay-per-mile insurance is different from traditional car insurance, which charges you a fixed premium regardless of how much you drive. It’s also different from low-mileage discounts, which offer a percentage off your premium if you drive below a certain threshold. Pay-per-mile insurance gives you more control over your costs and rewards you for driving less.

Some of the benefits of pay-per-mile insurance are:

• You can save money. According to some carriers, you can save up to 40% or more on your car insurance if you drive infrequently. For example, if you drive 5,000 miles per year instead of 15,000 miles per year, you could save hundreds of dollars annually.
• You can reduce your environmental impact. Driving less means burning less fuel and emitting less greenhouse gases. By choosing pay-per-mile insurance, you can contribute to a cleaner and greener planet.
• You can encourage safer driving habits. Driving less means exposing yourself to fewer risks on the road. By paying per mile, you have an incentive to avoid unnecessary trips and plan your routes more efficiently. You may also drive more cautiously and avoid speeding or braking hard.

How to find the best pay-per-mile insurance provider

If you’re interested in pay-per-mile insurance, you need to do some research and comparison shopping before choosing a provider. Here are some tips on how to find the best pay-per-mile insurance provider for your situation:

• Check their coverage options. Pay-per-mile insurance offers the same coverage options as traditional car insurance, such as liability, collision, comprehensive, uninsured/underinsured motorist, medical payments, and personal injury protection. Make sure the provider you choose offers the coverage you need and want.
• Compare their rates. Pay-per-mile insurance rates vary depending on the provider, your base rate, and your per-mile rate. The base rate can range from $20 to $50 per month, while the per-mile rate can range from 2 cents to 10 cents per mile. Compare the rates of different providers based on your driving habits and needs. You can use online tools or calculators to estimate your potential savings.
• Read their reviews. Pay-per-mile insurance is a relatively new concept, so you may want to read some reviews from other customers who have tried it. Look for reviews that mention the provider’s customer service, claims process, app features, and overall satisfaction. You can also check their ratings and complaints with the Better Business Bureau or your state’s insurance department.
• Get quotes from multiple providers. The best way to find the best pay-per-mile insurance provider is to get quotes from multiple providers and compare them side by side. You can do this online or over the phone. You’ll need to provide some basic information about yourself, your car, and your driving history. You’ll also need to install a device or an app on your car or phone that tracks your mileage.

Some of the leading pay-per-mile insurance providers in the market are:

• Metromile: Metromile is one of the pioneers of pay-per-mile insurance. It operates in eight states: Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington. It offers a base rate of $29 per month and a per-mile rate of 4 cents to 6 cents per mile. It also offers a smart driving app that gives you access to features such as roadside assistance, trip tracking, car health monitoring, and street sweeping alerts.
• Mile Auto: Mile Auto is another pay-per-mile insurance provider that operates in Arizona, Georgia, Illinois, Oregon, and Virginia. It offers a base rate of $25 to $40 per month and a per-mile rate of 3 cents to 6 cents per mile. It also offers a privacy-friendly app that lets you take a photo of your odometer once a month instead of using a device that tracks your location and driving behavior.
• Nationwide SmartMiles: Nationwide SmartMiles is a pay-per-mile insurance program offered by Nationwide, one of the largest car insurance companies in the country. It operates in 40 states and offers a base rate of $35 to $65 per month and a per-mile rate of 4 cents to 10 cents per mile. It also offers a device that plugs into your car’s diagnostic port and tracks your mileage, speed, hard braking, and idle time. You can earn discounts based on your driving performance and safety score.
• Allstate Milewise: Allstate Milewise is another pay-per-mile insurance program offered by Allstate, another major car insurance company in the country. It operates in 14 states and offers a base rate of $20 to $50 per month and a per-mile rate of 2 cents to 9 cents per mile. It also offers a device that plugs into your car’s diagnostic port and tracks your mileage, speed, hard braking, and acceleration. You can earn rewards for safe driving and refer-a-friend bonuses.

Other ways to lower car insurance costs for high-mileage drivers

Pay-per-mile insurance is not the only way to lower your car insurance costs as a high-mileage driver. There are some other strategies you can use to reduce your premiums, such as:

• Improve your security. If you have a car alarm, anti-theft device, or tracking system installed on your car, you can lower the risk of theft or vandalism and qualify for a security discount from your insurer. This can save you up to 10% on your premium.
• Increase your deductible. Your deductible is the amount you pay out of pocket before your insurance kicks in when you file a claim. By increasing your deductible, you can lower your premium because you’re taking on more financial responsibility in case of an accident. For example, if you increase your deductible from $500 to $1,000, you could save up to 15% on your premium.
• Build up your no-claims bonus. Your no-claims bonus is the discount you get for every year you go without filing a claim with your insurer. The longer you go without making a claim, the bigger your discount becomes. This can save you up to 75% on your premium after five years of claim-free driving.
• Bundle your policies. If you have more than one type of insurance policy with the same insurer, such as home insurance or renters insurance, you can bundle them together and get a multi-policy discount from your insurer. This can save you up to 25% on your premium.

Let’s look at an example of how these strategies can help lower your car insurance costs as a high-mileage driver.

Suppose you drive 20,000 miles per year and pay $2,000 per year for a traditional car insurance policy with a $500 deductible, a $100,000/$300,000 bodily injury liability limit, a $50,000 property damage liability limit, and comprehensive and collision coverage. Here’s how much you could save by using the strategies above:

• If you switch to pay-per-mile insurance with Metromile and pay a base rate of $40 per month and a per-mile rate of 5 cents per mile, you could save $800 per year on your premium ($2,000 - $1,200 = $800).
• If you improve your security by installing a car alarm and get a 10% discount from your insurer, you could save $200 per year on your premium ($2,000 x 0.1 = $200).
• If you increase your deductible to $1,000 and get a 15% discount from your insurer, you could save $300 per year on your premium ($2,000 x 0.15 = $300).
• If you build up your no-claims bonus for five years and get a 75% discount from your insurer, you could save $1,500 per year on your premium ($2,000 x 0.75 = $1,500).
• If you bundle your car insurance with your home insurance and get a 25% discount from your insurer, you could save $500 per year on your premium ($2,000 x 0.25 = $500).

As you can see, these strategies can help you lower your car insurance costs significantly as a high-mileage driver. However, keep in mind that these are just estimates and your actual savings may vary depending on your insurer, location, driving record, and other factors.

Conclusion

Finding cheap car insurance for high-mileage drivers can be challenging, but not impossible. Pay-per-mile insurance is one of the best options for drivers who drive more than 12,000 miles per year because it lets them pay based on how much they drive. Pay-per-mile insurance can help them save money, reduce their environmental impact, and encourage safer driving habits.

However, pay-per-mile insurance is not the only way to lower car insurance costs for high-mileage drivers. There are some other strategies they can use to reduce their premiums, such as improving their security, increasing their deductible, building their no-claims bonus, and bundling their policies.

If you’re a high-mileage driver who wants to find cheap car insurance, don’t wait any longer. Start comparing pay-per-mile insurance providers today and see how much you can save.

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