Pay-Per-Mile Car Insurance: Is It Worth It For Low-Mileage Drivers?

"Pay-per-mile splits the cost in two: Base rate. Covers risks like theft, fire, or weather-related damage. Per-mile rate. A set amount for every mile driven. Mileage is confirmed through telematics devices, odometer photos, connected-car systems, or smartphone apps. Many plans include a daily mileage cap, so the occasional road trip doesn't blow your monthly total. Coverage options - liability, collision, and comprehensive - are the same as with standard policies."

"Only a few insurers offer true pay-per-mile coverage nationwide, and availability differs by state. Programs vary in how they track mileage, apply daily caps, and award discounts. Some limit billable miles each day; others average usage over time. The biggest gains generally go to: Remote or hybrid employees without a regular commute City residents who mainly use public transport or cycle Retirees who drive less than they used to Students or part-time workers with limited driving needs Owners of secondary cars that spend most days parked"

Pay-per-mile car insurance replaces flat premiums based on estimated annual mileage with a split model: a base rate for non-driving risks and a per-mile charge for actual use. Mileage is tracked via telematics devices, odometer photos, connected-car systems, or smartphone apps, and many plans impose daily mileage caps to limit high-day costs. Coverage options such as liability, collision, and comprehensive remain the same as standard policies. Availability and program details vary by insurer and state, including how miles are measured and discounts applied. Low-mileage drivers stand to save, while tracking raises privacy considerations and trade-offs.

Read at Black Enterprise