Best Pay-Per-Mile Auto Insurance in 2025 (See the Top 10 Companies Here!)
State Farm, Farmers, and Erie have the best pay-per-mile auto insurance. Pay-per-mile car insurance rates start at only $30/month. These companies adjust coverage based on how much you drive, making them a great choice for anyone looking for flexible pay-per-mile options without overpaying.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
UPDATED: Mar 29, 2025
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We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
UPDATED: Mar 29, 2025
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
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3,072 reviewsCompany Facts
Pay-Per-Mile Full Coverage
A.M. Best Rating
Complaint Level
Pros & Cons
3,072 reviews
1,883 reviewsCompany Facts
Pay-Per-Mile Full Coverage
A.M. Best Rating
Complaint Level
Pros & Cons
1,883 reviewsState Farm, Farmers, and Erie offer the best pay-per-mile auto insurance. State Farm has the lowest rates, at $30 monthly, and reliable coverage.
It stands out for its affordability and nationwide availability. Here’s what you should know about auto insurance.
Our Top 10 Company Picks: Best Pay-Per-Mile Car Insurance| Company | Rank | Bundling Discount | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | 17% | B | Many Discounts | State Farm |
 | #2 | 20% | A | Local Agents | Farmers |
 | #3 | 25% | A+ | 24/7 Support | Erie |
 | #4 | 15% | A | Online App | AAA |
 | #5 | 25% | A+ | Add-on Coverages | Allstate |
 | #6 | 10% | A+ | Innovative Programs | Progressive |
 | #7 | 25% | A++ | Custom Plan | Geico |
 | #8 | 25% | A | Customizable Polices | Liberty Mutual |
 | #9 | 25% | A | Student Savings | American Family |
 | #10 | 30% | A+ | Customer Service | Amica |
Farmers offers flexible plans with discounts, while Erie is a good choice for people who do not drive much because of their low prices and helpful service. But the best choice for you depends on how you drive.
Ready to see how much you can save on your car insurance? Just enter your ZIP code into our free comparison tool.
- The best pay-per-mile auto insurance providers offer low rates and flexible plans
- At $30 monthly, State Farm offers the best rates for most drivers
- Farmers and Erie provide competitive and customizable pay-per-mile options
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#1 – State Farm: Overall Top Pick
Pros
- Big Savings for Low-Mileage Drivers: State Farm offers strong discounts for drivers who don’t drive much, making it the best pay-per-mile auto insurance for budget-conscious drivers.
- Affordable Minimum Coverage: State Farm offers the cheapest starting rate for pay-per-mile plans at just $30 per month.
- Extra Savings When Bundling: Drivers can save up to 17% when bundling pay-per-mile coverage with home or renters insurance.
Cons
- Limited Availability: State Farm’s pay-per-mile insurance is not offered in every state, restricting access for some drivers. Read this State Farm insurance review to learn more.
- Small Changes in Per-Mile Prices: State Farm’s pay-per-mile rates do not adjust as much as some other companies based on how you drive.
#2 – Farmers: Best for Local Agents
Pros
- Easy Help from Local Agents: Farmers is a great pick if you like having someone you can talk to in person when setting up or managing your policy.
- Competitive Rates for Low Mileage: At $52 per month, Farmers offer solid minimum coverage rates for drivers who don’t drive much.
- Good Bundling Savings: Customers can save up to 20% when bundling their pay-per-mile insurance with home or other policies. For more details, visit this Farmers insurance review.
Cons
- Must Track Miles: Farmers’ pay-per-mile plan keeps track of your miles, which some drivers might not like.
- Limited Online Features: Drivers who like to manage everything online may find that Farmers’ website and app do not have all the features they need.
#3 – Erie: Best for 24/7 Support
Pros
- 24/7 Customer Support: Erie is there for you anytime, day or night, making it the best pay-per-mile auto insurance for people who want help when they need it.
- Affordable Rates: Erie has one of the lowest costs for pay-per-mile plans, with minimum coverage at only $35 per month.
- Biggest Bundling Discount: Drivers who bundle pay-per-mile insurance with home or life policies can save up to 25%.
Cons
- Not Available in All States: Erie’s pay-per-mile insurance is only offered in certain areas, limiting access. Explore Erie’s insurance review to learn more.
- Some Discounts Require a Long History: Erie gives its best pay-per-mile discounts to long-term customers, making it harder for new drivers to qualify.
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#4 – AAA: Best for Online App
Pros
- Easy-to-Use Mobile App: AAA is the best pay-per-mile auto insurance for drivers who want to track mileage and manage policies through a simple app.
- Fair Pricing: AAA’s minimum coverage costs $47 per month, making it a reasonable choice for drivers who don’t drive much.
- Bundling Discounts for Members: AAA members can save up to 15% by bundling their pay-per-mile insurance with other policies.
Cons
- Must Join AAA: AAA’s pay-per-mile insurance is only for members, which means extra costs. Check out this AAA insurance review for details.
- Prices Change by Location: AAA’s pay-per-mile rates are different in each area, so it is harder to know exactly how much you will save.
#5 – Allstate: Best for Add-on Coverages
Pros
- Add-Ons for Pay-Per-Mile Drivers: Allstate has the best pay-per-mile auto insurance add-ons for drivers who want extra protection, like accident forgiveness or roadside assistance.
- Solid Rates: Allstate offers minimum coverage at $58 per month, keeping costs manageable for those who drive less. Visit our Allstate auto insurance review for more info.
- Good Bundling Discount: Drivers can save up to 25% by bundling their pay-per-mile insurance with home or renters policies.
Cons
- Higher Full Coverage Rates: While minimum coverage is fair, full coverage pay-per-mile insurance can cost more than some competitors.
- Claims Can Take Longer: Some pay-per-mile customers report that Allstate’s claim processing can be slower than expected.
#6 – Progressive: Best for Innovative Programs
Pros
- Smart Tracking With Snapshot: Progressive is the best pay-per-mile auto insurance for drivers who want an app that tracks mileage and driving habits for extra savings.
- Affordable Low-Mileage Plan: Progressive’s minimum coverage rate of $45 per month keeps costs low for light drivers. Need more info? Read our Progressive auto insurance review.
- Trusted for Claims: Progressive has been paying claims quickly for years, so you can count on them if you ever need to use your pay-per-mile coverage.
Cons
- Lower Bundle Savings: Progressive only gives a 10% discount for bundling, which is lower than what other pay-per-mile insurance insurers offer.
- Bigger Costs for Risky Driving: If the Snapshot program notices bad driving, your pay-per-mile costs could decrease.
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#7 – Geico: Best for Custom Plan
Pros
- Fits How You Drive: Geico is a good option if you want a pay-per-mile plan that matches how much you drive.
- Low Starting Price: Geico’s basic coverage starts at $39 per month, making it one of the cheaper choices.
- Extra Savings for Bundling: Customers can save up to 25% when they combine their pay-per-mile policy with other insurance.
Cons
- Mostly Online Service: Geico does not have many local agents, so it may not be the best fit if you prefer in-person help.
- Not Always the Best for Long Drives: If you drive a lot, another company might have a cheaper option for you. Take a look at the Geico auto insurance review for more details.
#8 – Liberty Mutual: Best for Customizable Policies
Pros
- Fits Your Driving Habits: Liberty Mutual’s pay-per-mile plan is a good option if you want coverage that adjusts based on how much you drive.
- Easy on the Budget: With rates starting at $43 per month, Liberty Mutual keeps pay-per-mile insurance affordable.
- Strong Bundling Savings: Drivers can save up to 25% by bundling their pay-per-mile policy with other insurance types.
Cons
- Customization Can Raise Costs: More coverage options can make pay-per-mile plans pricier.
- Mixed Customer Service Reviews: Some drivers report delays in claims handling. For more info, visit our Liberty Mutual auto insurance review.
#9 – American Family: Best for Student Savings
Pros
- Student Driver Discounts: American Family is the best pay-per-mile auto insurance for students who drive less and need cheaper coverage.
- Helpful Tools for Young Drivers: American Family offers learning resources and safe driving programs designed to help students build good habits on the road.
- Solid Bundling Discount: Drivers can save up to 25% when bundling their pay-per-mile policy with home or renters insurance.
Cons
- Not Available Everywhere: American Family’s pay-per-mile insurance is only offered in select states. Get more details in our American Family insurance review.
- Higher Minimum Coverage Costs: At $77 per month, minimum coverage is more expensive than some competitors.
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#10– Amica: Best for Customer Service
Pros
- Top-Notch Customer Service: If you’re looking for pay-per-mile auto insurance with great support, Amica is a fantastic choice.
- Reliable Low-Mileage Rates: Amica’s minimum coverage is $79 per month, making it a fair choice for drivers who don’t drive much.
- Biggest Bundling Discount: Drivers can save up to 30% by bundling their pay-per-mile policy with home or renters insurance.
Cons
- Fewer Digital Tools: Amica’s pay-per-mile insurance lacks some competitors’ online features. Read the Amica insurance review for more information.
- Stricter Discount Rules: Some of Amica’s best discounts are only available to long-term customers.
Understanding UBI and Pay-Per-Mile Insurance
Today, technology has changed many parts of our lives, including how we work and live. Insurance is also changing, with new tools making it faster and easier.
Pay-Per-Mile Car Insurance Monthly Rates by Provider & Coverage Level| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| $47 | $202 |
| $58 | $146 |
| $77 | $231 |
| $79 | $187 |
| $35 | $122 |
| $52 | $133 |
| $39 | $153 |
| $43 | $176 |
| $45 | $167 |
| $30 | $96 |
One of these changes is usage-based insurance (UBI) and pay-per-mile insurance. These options let you customize your car insurance. Knowing how they work can help you choose the best car insurance for what you need.
Read more: 10 Best Auto Insurance Companies That Sell Policies Online
UBI Explained in Simple Terms
Usage-based insurance (UBI), also called telematics insurance, uses technology to track your driving habits and set personalized rates. If you put a telematics device in your car, your insurance company can track things like how much you drive, how fast you go, and how smoothly you brake and accelerate. They use this info to set your rate, so you’re only paying for what you actually use.
Jimmy McMillan Licensed Insurance Agent
One of the best things about UBI is that it rewards you for being a safe driver with lower rates. If you stick to the speed limit and follow traffic rules, you could save a lot on your insurance. On top of that, the feedback from telematics can help you fine-tune your driving skills and make the road safer for you and everyone else.
Furthermore, UBI is a great choice if you do not drive much. If you usually take the bus or only use your car now and then, this kind of insurance can help you save money since you only pay for the miles you actually drive.
The Concept of Pay-Per-Mile Insurance
Pay-per-mile insurance uses usage-based programs (UBI) to set your rate based on how much you drive. If you do not use your car often or have other ways to get around, this can help you save money. You have more control over your insurance costs since you only pay for the miles you drive.
This kind of insurance can be a great fit if you live in a city with good buses and trains or work from home. If you don’t drive as much as someone with a long commute, pay-per-mile insurance helps you stay covered without spending a lot on a car that mostly sits parked.
It also makes other ways of getting around even more worthwhile. When you drive less, you save money and make options like buses, trains, and carpooling even more useful. On top of that, fewer cars on the road mean less time stuck in traffic and cleaner air for everyone. It is a simple way to spend less while helping your community and the environment.
Benefits of UBI/Pay-Per-Mile Insurance
There are many good things about pay-per-mile insurance. Knowing these benefits can help you decide if this type of car insurance is right for you.
UBI and pay-per-mile insurance have revolutionized the way we approach car insurance. These plans give you more than regular insurance. They help you save money, drive safer, and give you more control over your costs.
Read more: Full Coverage Auto Insurance
Cost Efficiency
UBI and pay-per-mile insurance charge you based on how much you drive, which can help you spend less. If you drive less or drive safely, you will not have to pay a high fixed price. Instead, your cost matches how you drive, making it a cheaper option.
With these policies, you only pay for the miles you use, so you’re not overpaying for coverage you don’t need. Whether you mostly take public transportation or only drive on weekends, this type of insurance helps you save money while still getting the protection you need.
Read more: Stop Overpaying For Auto and Home Insurance
Encourages Safe Driving
One of the best things about UBI and pay-per-mile insurance is that they make you more aware of how you drive. Since a telematics device or app is tracking your habits, you start paying more attention to things like speed, braking, and overall safety. Knowing that how you drive affects your insurance costs can be a good reason to be more careful. It helps keep you safe and could also save you money.
Car Insurance Discounts From the Top Pay-Per-Mile Providers| Insurance Company | Discount Program |
|---|---|
| Multi-Policy, Safe Driver, Good Student, Homeowner, Defensive Driving Discounts |
| Drivewise, Multi-Policy, Anti-Theft, Good Student, Early Signing, Claim-Free Discounts |
| Smart Start, Multi-Policy, Safe Driver, Defensive Driving, Homeowner Discounts |
| Loyalty, Multi-Line, Good Student, Defensive Driving, Paid in Full, Vehicle Safety Discounts |
| Multi-Policy, Safe Driver, Young Driver, Defensive Driving, Paid in Full Discounts |
| Signal App, Good Student, Multi-Policy, Vehicle Safety, Claims-Free Discounts |
| DriveEasy, Military, Good Student, Multi-Policy, Vehicle Safety, Anti-Theft Discounts |
| RightTrack, New Vehicle, Multi-Policy, Good Student, Claims-Free, Vehicle Safety Discounts |
| Snapshot, Multi-Policy, Homeowner, Good Student, Paid in Full, Claims-Free Discounts |
| Drive Safe & Save, Good Student, Multi-Policy, Defensive Driving, Claims-Free Discounts |
UBI and pay-per-mile insurance help you understand how you drive by tracking things like speed, braking, and mileage. This gives you a clearer picture of your habits, helping you drive safer and making the roads better for everyone.
Read more: Get Low-Cost Car Insurance with Driver Discounts
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Choosing the Right UBI or Pay-Per-Mile Insurance
When looking at UBI or pay-per-mile insurance, it is important to pick a plan that fits your needs. Below are some factors to consider when choosing the right insurance. Additionally, you can compare online car insurance quotes to save money and get the coverage you need.
Assessing Your Driving Habits
Think about how you drive, how far you go, how fast you drive, and where you spend most of your time on the road. This will help you decide if UBI or pay-per-mile insurance is right for you.
Life’s better when you bundle the things you love under our roof. https://t.co/wvMXB6Yuy2 pic.twitter.com/F4MYiVjfl1
— American Family Insurance (@amfam) September 7, 2023
It is not just about miles. Do you spend a lot of time in busy city traffic, or do you mostly drive on open highways? Paying attention to these details can help you find the best insurance for your needs.
Read more: Best Good Driver Car Insurance Discounts
Comparing Insurance Rates
Look at quotes from different companies that offer UBI and pay-per-mile insurance. Compare prices, coverage, and discounts to find the best deal for your budget.
A cheaper plan might not cover as much or could cost you more if you ever need to file a claim. Spending a little more might get you extras like roadside assistance. It is worth taking the time to compare options so you get the best value for your money.
Read more: How Insurance Companies Calculate Your Car Insurance Rate
Understanding the Terms and Conditions
Before choosing a plan, make sure you understand the detail, especially how your driving is tracked and how your data is used. UBI and pay-per-mile insurance usually use an app or a device to monitor your driving, which can affect your privacy and rates.
These plans help you save money and drive safely. To find the right one, compare prices, understand the rules, and pick a plan that works for you. Looking at different pay-per-mile insurance options can help you get the best deal. If you do not drive often, a pay-per-mile plan can be an easy way to save money.
Read more: Do I need multiple policies to get enough coverage?
Case Studies: Real Drivers Saving with Pay-Per-Mile Auto Insurance
Pay-per-mile insurance is a good option for people who do not drive much but still want solid coverage without high costs. These real stories show how different drivers found a plan that worked for them.
Case study #1: Sarah: Saving Money with State Farm
A 38-year-old teacher, Sarah, does not drive much because her job is close to home. She switched to State Farm’s pay-per-mile plan and now pays about $30 a month. Since she only pays for the miles she drives, she cut her insurance bill in half while keeping full coverage.
Case study #2: James: A Retiree Saving Money with Farmers
James is 67 and doesn’t drive much, just quick trips for errands or doctor visits. Farmers’ pay-per-mile plan cut his insurance costs way down, which was a big help. He liked how simple it was to keep up with his miles and felt good knowing he was still covered whenever needed.
Case study #3: Erie’s: Work-From-Home Savings with Erie
Lisa, 29, doesn’t drive much since she works from Erie’s pay-per-mile plan, which gave her low rates and the protection she needed. She liked how helpful Erie’s customer service was and how much she saved compared to a regular plan.
These real-life examples show how the best pay-per-mile auto insurance can help different drivers save money while keeping the coverage they need. If you do not drive much, switching to a pay-per-mile plan from State Farm, Farmers, or Erie could be an easy way to cut costs without giving up good protection.
Read more: Auto Insurance
Choose the Best Pay-Per-Mile Auto Insurance
Pay-per-mile auto insurance is a smart choice for people who don’t drive much and want to save money. Instead of paying a high fixed rate, you only pay for the miles you actually drive.
Companies like State Farm, Farmers, and Erie have affordable plans that still give you solid coverage, so you stay protected without spending more than you need to. Read more: Average Auto Insurance Rates by Age and Gender
Michelle Robbins Licensed Insurance Agent
Picking the right pay-per-mile insurance can help you save money while staying covered. By looking at different options, you can find a plan that works for how much you drive and what you can afford. If you do not drive much, switching to pay-per-mile insurance is an easy way to lower your costs without losing the protection you need.
Get the best auto insurance rates possible by entering your ZIP code into our free comparison tool today.
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Frequently Asked Questions
What is pay-per-mile insurance?
It is a type of coverage where you pay a base rate plus a per-mile fee, making it a great option for people who do not drive often. Instead of a fixed premium, your cost is based on the number of miles you drive each month. Additionally, mileage-based car insurance charges you for coverage based on your driving distance, making it a good choice if you do not use your car much.
How much is pay-per-mile insurance compared to traditional coverage?
The cost of pay-per-mile auto insurance varies, but it is often cheaper for drivers who travel less than 10,000 miles per year. To get an accurate estimate, it is best to request quotes from different pay-per-mile insurance companies. Find the cheapest rates in your area by entering your ZIP code.
How does pay-per-mile insurance work?
Your monthly bill has two parts. A base rate stays the same, and a variable cost depends on how many miles you drive. Pay-by-the-mile car insurance is a type of coverage where you pay based on how many miles you drive. This can save money if you do not drive often. Furthermore, insurance companies track your mileage using a device installed in your car or a mobile app.
What are the benefits of mileage-based car insurance?
It can save money for low-mileage drivers, promote safer driving habits, and offer flexibility. Since your cost is linked to the number of miles you drive, you have more control over your insurance expenses. Additionally, some companies offer car insurance per mileage using a tracking device or a mobile app to help you count your miles.
Which is the best pay-per-mile car insurance provider?
The best pay-per-mile car insurance company depends on your location, driving habits, and coverage needs. It is essential to compare different pay-per-mile insurance plans to find the best fit. Getting insurance for miles driven means you only pay for what you use, which can help you save money if you do not drive much.
Is pay-per-mile car insurance worth it?
The answer depends on how much you drive. If you drive less than the national average, insurance based on miles can lower your costs. However, a traditional policy might be more affordable if you frequently drive long distances. Learn how to get low-cost car insurance with driver discounts.
What is the difference between pay-per-mile and traditional car insurance?
Unlike traditional insurance, which charges a fixed premium, pay-by-the-mile car insurance adjusts costs based on usage. Low-mileage drivers can save money, while those who drive a lot may not see much benefit. Additionally, a pay-per-mile insurance company charges a small daily or monthly base rate plus a fee for each mile you drive.
How do I compare pay-per-mile auto insurance plans?
When comparing pay-per-mile auto insurance plans, consider the base rate, per-mile cost, coverage options, and how the insurer tracks mileage. Checking pay-per-mile car insurance reviews can also help you choose the best provider.
How do pay-per-mile insurance companies track mileage?
They use a plug-in device that connects to your car’s diagnostic port or a smartphone app. These tools measure mileage and, in some cases, collect data on driving habits, similar to UBI car insurance (usage-based insurance). Learn more about telecommuting auto insurance coverage.
Who benefits the most from car insurance based on miles driven?
Drivers who use their cars occasionally, work from home, or rely on public transportation can benefit the most. If you drive less than 8,000 to 10,000 miles per year, per-mile insurance could lead to significant savings. Get fast and cheap auto insurance coverage today with our quote comparison tool.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.