What to Expect From Metromile Insurance

FT Contributor  | 

Metromile is an auto insurance provider that offers a unique model for calculating auto insurance policy premiums. As a pay-per-mile insurance company, customers pay a low monthly auto insurance premium but also pay a fee per each mile they drive throughout the month.

For drivers who don’t drive long distances or use their car often, this pay-per-mile insurance strategy may be beneficial. If you’re looking into buying car insurance, exploring your options with Metromile and the pros and cons of the company will help you decide if it’s right for you.

How Much Does Metromile Cost?

When purchasing auto insurance, one of the most important factors to consider is your policy’s premium. With Metromile, the premium you pay for coverage is based on your driving history, credit score, and age. When determining the policy premium you’ll pay each month, it’s important to keep the following rates in mind:

  • Base rate: Metromile determines your base rate by taking many factors into consideration, including your driving history. Your base rate is a set rate you pay each month while the policy is active.
  • Pay-per-mile rate: The rate you pay per mile is also calculated by analyzing your driving history and other factors and is usually a few cents. You pay for each mile you drive throughout the month in addition to your base rate. This figure may change each month, depending on how much you drive.
  • Monthly cost: The monthly premium you pay for your auto insurance policy fluctuates, depending on how much you drove in the past month. To calculate your monthly cost, take your base rate and add it to your pay-per-mile rate multiplied by the number of miles you drove in the past month.

Metromile only charges you for up to 250 miles per day and a maximum of 150 miles per day if you’re a New Jersey resident.

To accurately calculate how many miles you drove in the past month, you must download the Metromile smartphone app. The auto insurance company also sends you a device that you plug into your vehicle’s diagnostic system. To be eligible for insurance through the company, your vehicle must have an OBD-II port, which is common for vehicle models from 1996 and newer.

The device tracks your mileage and records it through your Metromile account in the app. You can check the app to see how many miles you’ve driven throughout the month and to keep an eye on your monthly premium.

Metromile Discounts

If you have a satisfactory driving history and you don’t drive many miles in a month, you’ll benefit from a low insurance premium with Metromile. You may also qualify for additional discounts on your auto insurance policy, including the following:

  • Multi-vehicle discount if you insure more than one car on the same policy.
  • Low premium if you drive less than 10,000 miles per year.
  • Discounts if you pay your premium in full.
  • Discounts if your vehicle has additional safety features, such as an anti-theft system.

When you get a car insurance quote with Metromile, it’s important to understand how your driving history and the number of miles you drive each month affect your monthly premium. Having a good idea of your monthly mileage will help you estimate what your monthly premium may be.

Insurance Coverage Options

Metromile offers standard auto insurance coverage and the coverage limits you’re required to carry may vary, depending on the state you live in. In addition to this mandatory coverage, you may opt to include additional coverages on your policy. Metromile offers several add-on coverages, including the following:

  • Collision and comprehensive.
  • Roadside assistance.
  • Pet injury protection.
  • Rental car coverage reimbursement.
  • Glass repair with a $0 deductible.

One common additional auto insurance coverage that Metromile doesn’t offer is gap insurance. This coverage is ideal if you’re leasing or financing your car.

If your new vehicle is totaled in a covered loss, the insurance company pays the difference in what you owe on the vehicle and what the vehicle is worth. If you want to carry gap insurance, you may need to look into options with a third-party carrier.

Filing a Claim With Metromile

You can file a claim with Metromile through the company’s smartphone app, online, or by calling the claims center at 888-595-5485. To file a claim on the app, follow these steps:

  1. Open the app on your smartphone.
  2. Ensure you’re signed into your account.
  3. Choose to “File a claim.”
  4. Provide information on the incident, including the date and what happened.
  5. Upload photos of the incident, if available.
  6. Wait until a claims adjuster calls you to discuss the next steps in the process.

To file a claim on the Metromile website, visit the site and log into your account with your email address and password. Choose to “File a claim” and provide the information as requested. Ensure your contact information is updated and wait to receive contact from a claims adjuster for information on the next steps.

Pros of Metromile Insurance

Metromile Insurance auto policyholders experience several benefits, including the following:

  • You can save money if you drive less than 10,000 miles per year.
  • If you have a full-coverage policy, pet injury protection is included at no extra cost.
  • You may qualify for additional discounts, such as a multi-vehicle discount.
  • With the smartphone app and online account, you can check your mileage, review your car’s health, pay your premium, file a claim, and check your coverage.

Cons of Metromile Insurance

While Metromile Insurance may be an inexpensive way for drivers with low mileage to obtain auto insurance, customers have reported some drawbacks, including the following:

  • Metromile insurance coverage is only available in Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington.
  • If you make money driving through Uber or another rideshare program, you don’t qualify for auto insurance through Metromile.
  • If you drive more than 10,000 miles per year, are a young driver, or have a poor driving history, you’re not likely to save money on your monthly premium.
  • Your driving must be constantly monitored through the smartphone app and plug-in device.
  • You may have trouble budgeting accurately since your monthly auto insurance premium fluctuates based on the number of miles you drove.

If you’re in the market for car insurance and don’t drive your vehicle a lot, it may be beneficial to look into Metromile Insurance. Before purchasing a policy with the company, consider your driving habits and estimate your potential monthly premium to be sure you’re getting a good deal on coverage. Make sure your state offers Metromile insurance, and get your quote for free today.


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