Mile Auto Insurance is a per-mile insurance company, which means rates are based mostly on the number of miles you drive per month. If you drive less, your bill goes down, and if you drive more, your bill goes up. The company is very new and has only been selling car insurance since fall 2018, so there are very few reviews from current customers. But its cheap rates for people who don't drive often and its simple pricing model may make it an excellent fit for some drivers.
How Does Mile Auto Insurance Work?
Mile Insurance is a per-mile insurance company. This means your car insurance bill each month has two parts: your base rate, which is the same amount regardless of how much you drive; and a per-mile rate. For example, a sample driver with Mile might pay a flat rate of $48 + $0.08 per mile. If this person drives 300 miles per month, their total rate would be $72. But if the person drives 1,000 miles (the national median), their bill would be $128 for that month.
|1,000 (national median)||$128|
Monthly costs are derived using a sample rate provided by Mile.
Both your monthly flat rate and your mileage rate are set using the same criteria auto insurers typically use to set rates. This includes your driving history, location, age and the level of insurance coverage you choose.
Unlike other per-mile insurance companies like MetroMile—and larger car insurance companies like Geico—Mile Auto Insurance doesn't track your driving using a smartphone app or a device that plugs directly into your car. Instead, you'll take a picture of your odometer once a month, and Mile tabulates the distance and bills accordingly.
There are pros and cons to this snap-and-send method. Privacy-minded drivers may find the minimally intrusive data collection preferable to providing an insurer with their location and driving habits at all times. And with Mile, you can do so while still reaping the benefits of a per-mile rate. Additionally, the simple pricing model may appeal to drivers who want insight into how much their insurance costs. It's easy to understand a simple rate that's applied to each mile you drive your car.
But there are trade-offs, too. Photographing and submitting your odometer reading doesn't take long, but it's another task you have to remember to complete each month. And a per-mile rate means your insurance bill can spike if you take a long car trip. By comparison, MetroMile has a daily mileage limit: Once you've driven 250 miles in a day, additional miles are free.
Mile Auto Insurance is only sold through independent insurance agents, and the company's website doesn't currently have user functionality. As such, people insured with Mile will only be able to make changes to their policies by contacting an insurance agent.
Who Should Consider Mile Auto Insurance?
Mile Auto Insurance is best for drivers who don't drive often and live in one of the states where the company offers insurance: Oregon and Illinois.
Mile Auto's pricing model is best for drivers who don't drive their car to work every day. This includes people who commute by public transit or work from home, college students, retirees, and anyone else who primarily uses their car for errands or occasional trips.
Because part of your rate is set directly by the number of miles you drive your car, Mile Auto's prices will fluctuate from month to month. In order to know whether Mile Auto is a good choice for you, you'll need a solid understanding of how much you drive each month and how that amount fluctuates during the year. For example, if you always bike to work and use your car sparingly on weekends to run errands, Mile could be a good fit. But if your driving habits vary—for example, you commute via bicycle in the summer but drive to work in the winter—you'll need to calculate the potential fluctuation in your monthly rates to determine whether Mile Auto is a good choice for you.
Some drivers may simply prefer not to worry about the per-mile cost at all and go with an insurer that charges the same amount, no matter how much you use your car.
Additionally, long-distance trips can easily make your insurance rates spike. For example, the distance from Chicago to New York City is about 800 miles. For our sample driver, a single round trip between those two cities would add $128 to that month's insurance bill. On the other hand, with MetroMile, the same round trip (driven over two separate days) would add just $40 total to our driver's bill, as MetroMile has a daily mileage cap of 250 miles. After that point, any additional miles are free each day.
Insurance cost of trip to Chicago
Costs are calculated using an assumed base rate of 8 cents per mile for both insurers.
Car Insurance Coverage From Mile Auto Insurance
Coverage offerings from Mile Insurance are fairly bare-bones when compared with most car insurance companies. It offers the basic coverages you need to legally drive in every state where it operates, including liability insurance for personal injury and property damage, personal injury protection, and comprehensive and collision coverages, which pay for damage to your car. You can also add roadside assistance and rental car cost coverage.
But there are no other options, such as gap coverage or glass protection. The company also doesn't offer accident forgiveness or discounts for things like taking driver safety courses.
How Does Mile Auto Fare Against Other Per-Mile Insurers?
Pay-per-mile auto insurance is a new trend, and there aren't many companies that offer this type of pricing. But for people who don't drive very much and would benefit from this model of coverage, it's worth comparing the options to see which is the best fit.
Allstate Milewise is a per-mile insurance policy available from a longstanding mainstream insurer. To use this service, you'll plug a device into your car and log in to a companion smartphone app that tracks your mileage and current bill. Allstate offers quotes online for regular car insurance policies, but rates for per-mile coverage aren't available on the web. Esurance, a subsidiary of Allstate, used to offer pay-per-mile insurance but discontinued the service.
- Best for: People who want per-mile insurance from a longstanding insurer.
- Available in: Oregon, New Jersey and Texas.
Like Allstate Milewise, MetroMile uses a plug-in telemetric device and smartphone app to monitor your mileage. This allows MetroMile to offer sophisticated features like a fuel tracker, parked car locator and maintenance alerts. But people who prefer not to share that data with their insurer may find Mile to be a better fit.
MetroMile is the only per-mile insurer that provides online quotes, so you can determine your rates right from your laptop or smartphone without having to deal with an insurance agent.
MetroMile—like Mile Auto—is a newly founded independent company. However, MetroMile underwrites its own policies and has been around for longer; it was founded in 2011.
- Best for: People who can take advantage of MetroMile's cost-tracking app and online quotes.
- Available in: Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia and Washington.
How Dependable Is Mile Insurance?
Mile is a very new company, and we recommend caution when buying a product of any kind from a company without a strong track record—car insurance is no exception. The lack of long-term reviews about Mile's pricing or customer service is our biggest concern about the company, and only time will tell whether Mile Auto Insurance can meet the expectations of drivers regarding affordable rates, customer service and claims satisfaction.
The good news is that from a financial perspective, Mile Auto is in strong standing. Its coverage is backed by Lyndon Southern Insurance Company, a medium-sized insurer based in Florida that has been operating since 1996. Lyndon Southern Insurance Company received an A- ("excellent") rating from A.M. Best. Policyholders can feel confident that Mile Auto can pay claims made to the insurer.