
Pay-Per-Mile Insurance vs. Traditional Coverage: Which One Is Right for You?
Not all drivers use their cars the same way, so why should they all pay the same for auto insurance? If you drive less than the average person, you might be overpaying for traditional auto coverage. Pay-per-mile coverage could offer a more cost-effective alternative to a traditional policy.
What Is Pay-Per-Mile Insurance?
Pay-per-mile insurance charges a base rate plus a per-mile fee, typically tracked using a device or app. This structure benefits low-mileage drivers, such as remote workers or city dwellers who rely on public transit. The less you drive, the less you pay. It’s a simple concept aimed at rewarding people who spend less time on the road. Coverage may still include standard liability, collision and other options, but your premium adjusts based on mileage.
What Is Traditional Auto Insurance?
Traditional insurance uses factors like age, location, vehicle type and driving history to calculate a fixed monthly or annual premium. It doesn’t account for how often you drive. This model works well for those with long commutes or frequent travel needs. Your rate stays the same regardless of how many miles you put on your car.
Which Type of Auto Insurance Should I Get?
Choosing between these options depends on your driving habits. Pay-per-mile could save you money if you average fewer than 10,000 miles a year. But a traditional policy may offer more predictable costs if you’re on the road daily. Consider your monthly mileage, vehicle use and how often your schedule changes. Compare quotes side by side and calculate your average cost over a year to decide which one fits your lifestyle better.
For more help understanding how pay-per-mile insurance stacks up, contact Rate Crushers Insurance Brokers today. Our agents can assess your situation and help you get the appropriate policy.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.