Published on January 8th, 2022
With the COVID-19 pandemic, the world shifted to online education and remote office work. As a result, more cars remained parked at home, and the roads became less busy.
Almost two years into the pandemic, many people have turned to full-time remote school and work. If you are working from home or no longer drive your car as much for other reasons, you might be paying too much for auto insurance.
While your vehicle gas and maintenance bills have likely decreased, you are probably still paying $100 or more a month for car insurance. Pay-per-mile insurance is specifically designed for drivers on the road, much less often these days.
The majority of states require drivers to carry liability insurance to be on the road. These mandates are in place to protect other drivers on the road.
Even if you only drive your vehicle a few miles each month, you must carry liability insurance. The national average for liability insurance is around $800 per year.
Depending on your situation, you might pay significantly more annually. If you need to carry collision and comprehensive coverage, you could pay around $1,700 per year.
However, if you aren’t driving as much as you used to, you might look into an alternative pay-per-mile insurance policy.
If you are interested in lowering your insurance costs with a pay-per-mile policy, you might check out some Allstate Milewise reviews.
With a program like Milewise from Allstate, you could pay significantly lower rates for car insurance. Let’s take a closer look at pay-per-mile insurance.
Raise Your Deductiblehow Does Pay-per-mile Insurance Work?
With pay-per-mile insurance, you get the same coverages as you would with a traditional auto insurance policy.
This includes liability insurance as well as collision and comprehensive coverage. You can also get uninsured motorists coverage and roadside assistance with a pay-per-mile policy.
The difference with a program like Milewise is that you have more control over your rate because it is based on the number of miles you actually drive.
Pay-per-mile insurance programs charge a base rate per month determined by the various factors that insurers use to determine traditional premiums.
Things like your driving record, age, type of car, and location will impact your base rate. Using those same considerations, the program will also charge a per-mile fee for each mile that you drive.
If your base rate is $29 per month and you pay $.05 per mile, your monthly bill would be $54 if you drove 500 miles in the month.
Considering that the average driver pays around $140 per month for insurance, you could see significant savings with a pay-per-mile program.
How Are Miles Tracked?
If you enroll in a program like Milewise, your miles driven will be tracked with an in-car device as well as a mobile app. A telematics device plugs into your car’s diagnostic port.
The device tracks your driving and sends the information to your insurance company. The mobile app will also keep track of the miles you have driven and the charges you have incurred. You can use the mobile app to check your mileage and bill as often as you need.
Is Pay-per-mile Insurance Worth It?
f you are a stay-at-home parent, remote employee, retiree, or have another situation that requires you to drive fewer miles, pay-per-mile insurance might be the smart choice for you.
Depending on your circumstance and vehicle, you could end up paying significantly less for full coverage insurance.
You will want to check out reviews and consider the number of miles that you actually have to drive each month. Based on your situation, pay-per-mile insurance like Allstate Milewise could be worth it.
If you don’t drive as much anymore, there is no need to pay full price for a traditional auto insurance plan. Checking out the Allstate Milewise program could save you a significant portion of your traditional insurance premium.