Pay by the Mile > What is Pay by the Mile Insurance?
What is Pay by the Mile, and how does it reward you?
With Pay by the Mile Insurance, you pay only for the miles you drive. Low-mileage drivers pay less than high-mileage drivers. Consumers who choose not to drive are rewarded with this savings.
How does Pay by the Mile Insurance work?
Mileage is recorded by a device that is installed in your car. This device can be installed by you or at a designated nearby shop.
Premium savings represent the reduction in insurance costs that are realized by insureds who reduce their driving (7500 miles or less per vehicle on average, and on vehicles 1996 and newer). These savings can be applied to one or multiple household vehicles.
"There is one thing we could do now that would change how people consume gas. We could switch from the current way in which people pay for auto insurance to a pay-by-the-mile system. Such a switch might reduce annual gas consumption by as much as 10 percent without raising the cost of insurance for an average driver. The key is to change the way that people view the cost of driving their car."
-- Harper's Magazine
Is Pay by the Mile right for you?
Pay As You Drive Insurance is optimal for low-mileage drivers. Fill out a short application to find out if you can save money.
The Less You Drive the More We All Save