Best Pay-As-You-Go Auto Insurance in 2025 (Top 10 Company Ranking)
Compare the best pay-as-you-go auto insurance options from Nationwide, Allstate, and Travelers. Affordable pay-as-you-go car insurance costs start at $45 monthly, and Nationwide rewards safe drivers with 20% in extra discounts. Allstate has the cheapest pay-by-the-day car insurance for high-mileage drivers.
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Heidi Mertlich
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Heidi works with top-rated life insurance carriers to bring her clients the highest quality protection at the most competitive prices. She founded NoPhysicalTermLife.com, specializing in life insurance that doesn’t require a medical exam. Heidi is a regular contributor to several insurance websites, including FinanceBuzz.com, Insurist.com, and Forbes. As a parent herself, she understands the...
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UPDATED: May 3, 2025
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We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes 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 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: May 3, 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 should be easy. This doesn’t influence our content. Our opinions are our own.
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1,733 reviewsGet the best pay-as-you-go auto insurance with Nationwide, Allstate, and Travelers, providing coverage as low as $45 per month.
Our Top 10 Company Picks: Best Pay-As-You-Go Auto Insurance| Company | Rank | Bundling Discount | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | 20% | A+ | Safe Drivers | Nationwide |
 | #2 | 25% | A+ | High-Mileage Drivers | Allstate |
 | #3 | 13% | A++ | Data Privacy | Travelers |
 | #4 | 10% | NR | Roadside Assistance | Root |
 | #5 | 15% | A- | Low-Mileage Drivers | Metromile |
 | #6 | 17% | A++ | Reliable Service | State Farm |
 | #7 | 10% | A+ | Custom Tracking | Progressive |
 | #8 | 25% | A | Competitive Discounts | Liberty Mutual |
 | #9 | 20% | A | Budget Conscious | Farmers |
 | #10 | 25% | A++ | Digital Management | Geico |
Pay-as-you-go insurance calculates premiums based on actual mileage, allowing companies to offer the lowest rates to those who drive less than 10,000 miles annually.
This guide reveals the top insurers for different driver profiles and shares hacks to save more money on car insurance through bundling discounts up to 25% and anti-theft savings reaching 35%.
- Pay-as-you-go minimum coverage starts at $45 and goes up to $62 a month
- Nationwide rewards safe pay-as-you-go drivers with 20% discounts
- Companies like Metromile offer up to 60% savings for low-mileage drivers
Discover whether you’re among the drivers who can save up to 60% with this flexible option. Get the best auto insurance rates possible by entering your ZIP code into our free comparison tool today.
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#1 – Nationwide: Top Overall Pick
Pros
- Superior Safety Rewards: Safe drivers receive up to 20% extra discounts when enrolled in Nationwide SmartMiles, significantly higher than the industry average of 15%.
- Low Complaint Frequency: Customer ratings show fewer disputes with Nationwide’s pay-as-you-go claims than most rivals (Read More: Nationwide Insurance Review).
- Comprehensive Add-on Package: Nationwide bundles all five essential coverage add-ons with its pay-as-you-go full coverage at $150, unlike competitors who frequently omit features.
Cons
- Higher Entry Cost: The minimum coverage rate of $55 makes Nationwide’s pay-as-you-go auto insurance more expensive than State Farm’s $45 entry-level option.
- Limited Mileage Flexibility: Pay-as-you-go drivers exceeding 11,000 annual miles see diminishing returns on their SmartMiles benefits compared to specialized high-mileage providers like Allstate.
#2 – Allstate: Best for High-Mileage Drivers
Pros
- Advanced Telematics Analysis: Allstate utilizes 15 distinct driving metrics in its MileWise pay-as-you-go program, providing high-mileage drivers more opportunities to save money.
- Bundling Incentives: Our Allstate auto insurance review confirms it has the industry’s highest bundling discount, lowering pay-as-you-go insurance rates by 25%.
- Progressive Loyalty Benefits: Customers earn increasing pay-as-you-go discounts that grow by 3% annually up to 15% after five years.
Cons
- Regional Service Inconsistency: Allstate’s pay-as-you-go program receives average to below-average consumer ratings due to varying customer experiences across different states.
- Steep Coverage Jump: The $87 difference between minimum and full pay-as-you-go coverage rates represents the third-largest price gap among the top providers.
#3 – Travelers: Best for Data Privacy
Pros
- Enhanced Data Protection: Our Travelers auto insurance review highlights minimal data collection requirements in their pay-as-you-go program compared to competitors like Progressive.
- Guaranteed Rate Transparency: Full coverage at $160 includes clearly documented pay-as-you-go rate adjustment thresholds that prevent unexpected premium increases during your policy term.
- Exceptional Financial Strength: Travelers maintains the highest possible A++ financial rating, ensuring your pay-as-you-go claims will be honored even during severe economic downturns.
Cons
- Missing Coverage Elements: Travelers lacks both accident forgiveness and rideshare coverage in its pay-as-you-go program, forcing drivers to purchase these protections elsewhere.
- Premium Entry Point: At $60 for minimum coverage, Travelers charges $15 more than State Farm for basic pay-as-you-go protection despite similar overall benefits.
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#4 – Root Insurance: Best for Tech-Savvy Drivers
Pros
- Precision AI Scoring: Root employs proprietary machine learning algorithms that analyze 200+ driving factors to determine your pay-as-you-go rate (Read More: Best Auto Insurance for Good Drivers).
- Hardware-Free Monitoring: Tech-savvy drivers can activate their pay-as-you-go program entirely through smartphone sensors without installing additional devices in their vehicles.
- Competitive Technology Value: At $52 for minimum coverage, Root delivers advanced pay-as-you-go telematics capabilities for less than most traditional insurers’ basic tracking programs.
Cons
- Critical Coverage Gaps: Drivers needing accident forgiveness or rideshare protection must purchase separate policies since Root’s pay-as-you-go program excludes these coverages.
- Developing Claims Infrastructure: As a newer provider, Root’s pay-as-you-go claims processing averages three days longer than established competitors like State Farm.
#5 – Metromile: Best for Low-Mileage Drivers
Pros
- Precise Mile-Based Billing: Metromile charges customers by the exact mile driven in their pay-as-you-go system, saving low-mileage drivers up to 60% compared to traditional plans.
- Detailed Usage Analytics: Monthly statements break down exactly how each journey affects your pay-as-you-go rate of $50 for minimum coverage, creating unprecedented billing transparency.
- Real-Time Rate Adjustments: Customers’ premiums automatically adjust each month based on actual mileage in Metromile’s pay-as-you-go program without requiring contract modifications.
Cons
- Significant Coverage Limitations: Drivers cannot get accident forgiveness or rideshare protection through Metromile pay-as-you-go (Read More: Best Auto Insurance For DoorDash Drivers).
- Limited State Availability: Metromile’s pay-as-you-go insurance currently operates in only eight states, excluding many drivers who could benefit from mile-based pricing.
#6 – State Farm: Best for Consistent Reliability
Pros
- Unmatched Local Support: State Farm maintains 19,000+ local agents nationwide who provide personalized guidance for optimizing your pay-as-you-go savings opportunities.
- Industry-Leading Affordability: Its pay-as-you-go minimum coverage rate of $45 is the lowest among all top ten providers. Compare more quotes in our State Farm auto insurance review.
- Substantial Safe Driver Rewards: Drivers can earn an additional 20% discount by maintaining excellent records in State Farm’s pay-as-you-go program for six consecutive months.
Cons
- Significant Protection Gaps: State Farm’s pay-as-you-go program excludes both rideshare coverage and gap insurance, creating potential financial vulnerabilities for certain drivers.
- Outdated Tracking Technology: The plug-in devices used for State Farm’s pay-as-you-go monitoring lack the advanced features and user interface of app-based competitors.
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#7 – Progressive: Best for Customizable Tracking
Pros
- Customizable Tracking Methods: Drivers can choose between smartphone apps or traditional plug-in devices for their pay-as-you-go monitoring, unlike most competitors who offer only one option.
- Complete Coverage Ecosystem: Progressive’s pay-as-you-go includes all five key add-ons, unlike many competitors (Learn More: Everything You Need to Know About Progressive Insurance).
- Extended Rate Protection: Progressive guarantees your pay-as-you-go minimum coverage rate of $58 will remain unchanged for six months longer than industry standard terms.
Cons
- Premium Price Point: At $155 for full coverage, Progressive’s pay-as-you-go program costs $30 more than Farmers while offering comparable protection levels.
- Calculation Complexity: Drivers report difficulty predicting their actual pay-as-you-go savings due to Progressive’s algorithm using 12 different weighted variables for rate adjustments.
#8 – Liberty Mutual: Best for Competitive Discounts
Pros
- Exceptional Security Incentives: Liberty Mutual pay-as-you-go customers receive industry-leading 35% discounts for vehicles with qualifying anti-theft devices.
- Maximum Safety Incentives: Careful drivers can earn an additional 20% discount in Liberty Mutual’s pay-as-you-go program. Explore more discounts in our Liberty Mutual insurance review.
- Exclusive Military Discounts: Active and retired service members receive an additional 15% reduction on their pay-as-you-go rates beyond standard usage-based savings programs.
Cons
- Premium Entry Cost: Liberty Mutual’s pay-as-you-go minimum coverage starts at $62, exceeding State Farm’s comparable protection by a substantial $17 per month.
- Critical Protection Gap: Military personnel enrolled in pay-as-you-go programs cannot access accident forgiveness, exposing them to significant rate increases after even minor incidents.
#9 – Farmers: Best for Budget-Conscious Customers
Pros
- Budget-Friendly Protection: Farmers offers full coverage with a pay-as-you-go rate of $125, the lowest comprehensive option on this list. Get more quotes in our Farmers review.
- Stackable Discount Structure: Drivers can combine pay-as-you-go savings with up to seven other concurrent discounts, a compatibility level unmatched by other providers.
- Substantial Safety Rewards: Budget-conscious customers can earn an additional 20% off their pay-as-you-go rates by maintaining excellent driving records for consecutive policy terms.
Cons
- Lower Financial Rating: Farmers’ A rating from A.M. Best means its pay-as-you-go claims backing is less secure than Travelers’ or Geico’s superior A++ strength.
- Technology Performance: Customer feedback indicates Farmers pay-as-you-go tracking has more technical issues than smartphone-based alternatives from competitors like Root.
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#10 – Geico: Best for Digital Management
Pros
- Streamlined Digital Management: Geico’s mobile app allows complete management of pay-as-you-go car insurance without requiring agent interactions.
- Rock-Solid Financial Foundation: Our Geico auto insurance review verifies that its pay-as-you-go policies are backed by the highest possible A++ financial rating.
- Exceptional Multi-Policy Rewards: Customers can combine their pay-as-you-go program with home insurance to receive industry-leading 25% additional discounts beyond usage-based savings.
Cons
- Significant Protection Void: Drivers with financed vehicles cannot buy gap insurance through Geico pay-as-you-go, creating serious exposure if their car is totaled.
- Limited Rating Factors: Geico considers only eight driving behaviors in its pay-as-you-go calculations compared to Root’s 200+ factors, potentially limiting savings for some drivers.
Quotes From Top Pay-As-You-Go Auto Insurance Providers
When comparing the best companies for pay-as-you-go car insurance, it’s clear that options vary widely in both features and reliability. How much pay-as-you-go car insurance costs depends on the provider and coverage, but the table highlights clear leaders in affordability.
Pay-As-You-Go Auto Insurance Monthly Rates by Provider & Coverage Level| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| $48 | $135 |
| $47 | $125 |
| $54 | $157 |
| $62 | $165 |
| $50 | $140 |
| $55 | $150 |
| $58 | $155 |
| $52 | $145 |
| $45 | $130 |
| $60 | $160 |
The cost of pay-as-you-go car insurance can also reflect the tech used, with smartphone apps often more efficient than vehicle-installed devices.
Understanding how pay-as-you-go car insurance works helps, as it charges by miles driven, making it ideal for low-mileage drivers.
Michelle Robbins LICENSED INSURANCE AGENT
Usage-based models make for the best pay-as-you-go car insurance for young drivers, especially when paired with safe driving habits. Pay-as-you-go policies can also be the cheapest car insurance for students, remote workers, or urban commuters since these programs track specific driving patterns.
Essential Add-Ons For Pay-As-You-Go Auto Insurance
When comparing pay-as-you-go car insurance, it’s important to consider the types of add-ons or coverage options available. All top ten providers offer roadside assistance and rental reimbursement with pay-per-mile car insurance, ensuring you’re covered in case of an emergency.
Pay-As-You-Go Auto Insurance Add-Ons by Provider| Insurance Company | Roadside Assistance | Rental Reimbursement | Accident Forgiveness | Rideshare Coverage | Gap Insurance |
|---|---|---|---|---|---|
| ✅ | ✅ | ✅ | ✅ | ✅ |
| ✅ | ✅ | ✅ | ✅ | ✅ |
| ✅ | ✅ | ✅ | ✅ | ❌ |
| ✅ | ✅ | ❌ | ✅ | ✅ |
| ✅ | ✅ | ❌ | ❌ | ✅ |
| ✅ | ✅ | ✅ | ✅ | ✅ |
| ✅ | ✅ | ✅ | ✅ | ✅ |
| ✅ | ✅ | ❌ | ❌ | ✅ |
| ✅ | ✅ | ✅ | ❌ | ❌ |
| ✅ | ✅ | ❌ | ❌ | ✅ |
However, not every insurer offers coverage for rideshare drivers or those with leased vehicles. Safe drivers will also miss accident forgiveness perks from top providers like Travelers and Liberty Mutual if they sign up for pay-as-you-go car insurance (Read More: Liberty Mutual vs. Nationwide Auto Insurance).
If you’re seeking the best pay-as-you-go car insurance with no deposit, compare pay-as-you-go car insurance companies that offer all five essential add-ons, such as Nationwide and Allstate.
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Pay-As-You-Go Auto Insurance Savings & Discounts
Is pay-as-you-go car insurance cheaper? Yes, because it offers drivers a flexible way to save money by tailoring premiums to actual driving habits and miles driven. It’s particularly beneficial for those who drive less frequently, and discounts, such as those for safe driving, loyalty, or bundling policies, can further reduce costs.
Pay-As-You-Go Auto Insurance Discounts From Top Providers| Insurance Company | Anti Theft | Bundling | Loyalty | New Car | Safe Driver |
|---|---|---|---|---|---|
| 10% | 25% | 15% | 10% | 10% |
| 10% | 20% | 12% | 12% | 20% |
| 25% | 25% | 10% | 10% | 15% |
| 35% | 25% | 10% | 8% | 20% |
| 18% | 19% | 10% | 11% | 16% |
| 5% | 20% | 8% | 15% | 12% |
| 25% | 10% | 13% | 10% | 10% |
| 18% | 19% | 10% | 11% | 16% |
| 15% | 17% | 6% | 15% | 20% |
| 15% | 13% | 9% | 8% | 17% |
With multiple options from top companies, it’s important to consider how discounts can enhance the savings. Low-mileage drivers can benefit from maintaining a clean driving record and saving additional money with safe driver discounts.
However, customer reviews reveal mixed opinions on pay-as-you-go auto insurance. As one user shared, the best pay-as-you-go car insurance on Reddit forums depends largely on individual mileage and habits.
Comment
byu/candy_burner7133 from discussion
inInsurance
This review highlights that while pay-as-you-go works for some, it may not beat traditional plans for every driver. Always get multiple auto insurance quotes from different companies based on your mileage to see if pay-per-mile auto insurance is right for you.
Pay-As-You-Go Auto Insurance Coverage For Low-Mileage Driving
If you can’t afford your auto insurance, the best pay-as-you-go auto insurance companies offer flexible alternatives with potential savings of up to 60% for low-mileage drivers. Nationwide stands out for safe drivers with comprehensive add-ons and superior safety rewards.
Allstate excels for high-mileage drivers with advanced telematics that analyze 15 distinct driving metrics. Travelers offers exceptional financial strength and enhanced data privacy protection for security-conscious drivers.
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Who should consider pay-as-you-go car insurance? It’s ideal for infrequent drivers, remote workers, students, urban commuters, and budget-conscious customers looking to pay only for the miles they drive. Explore your auto insurance options by entering your ZIP code into our free comparison tool today.
Frequently Asked Questions
What variables does pay-as-you-go insurance measure?
Pay-as-you-go programs measure mileage, driving times, acceleration, braking habits, cornering speed, phone usage, and overall driving patterns. Companies like Root analyze over 200 different driving factors, compared to Geico’s eight factors.
What is a low-mileage discount, and is it different from pay-as-you-go auto insurance?
A low-mileage discount is a fixed percentage off for driving below a threshold (usually 7,500-10,000 miles annually). Pay-as-you-go is more dynamic, charging based on actual miles driven rather than offering a static discount.
Who is pay-per-mile auto insurance best for?
Pay-per-mile insurance is ideal for remote workers, retirees, urban residents who use public transportation frequently, college students, secondary vehicle owners, and seasonal drivers. When you’re denied insurance coverage, this option provides an affordable alternative.
Which auto insurance companies are best for pay-per-mile coverage?
Nationwide, Allstate, and Travelers lead with the best pay-as-you-go car insurance. Nationwide offers comprehensive five add-on packages, Allstate provides advanced telematics that analyze 15 distinct driving metrics, and Travelers ensures superior data privacy protection.
How is pay-per-mile auto insurance different from telematics?
Pay-per-mile focuses primarily on the distance driven, charging per mile. Telematics measures comprehensive driving behavior, including braking, acceleration, and time of day. Most pay-as-you-go programs combine both approaches.
Is pay-per-mile auto insurance worth it?
Pay-per-mile car insurance is worth it if you drive less than 10,000 miles annually, potentially saving up to 60% compared to traditional policies. Tips to pay less for car insurance include choosing this option if you’re a low-mileage driver.
Do insurance companies verify mileage?
Yes, insurance companies verify mileage through various methods, including plug-in devices, smartphone apps, built-in car telematics, odometer readings during service appointments, and periodic photo verification requirements.
How many miles is considered low mileage for auto insurance?
Most insurance companies consider low mileage to be under 10,000 miles per year, although thresholds vary. Metromile and other specialized providers typically offer their best rates to drivers who drive under 7,500 miles per year.
Is it bad to cancel pay-as-you-go auto insurance?
It’s bad to cancel car insurance without replacement coverage as it can create a lapse in coverage history, potentially raising future premiums by 10-30%. Instead, consider switching to pay-as-you-go for periods of limited driving (Read More: Is it bad to cancel car insurance?).
How accurate are pay-as-you-go tracking devices?
Pay-as-you-go tracking devices are generally 95-98% accurate for mileage but may vary in behavior monitoring. Smartphone-based systems like Root’s typically offer more precise driving behavior analysis than plug-in devices used by traditional insurers. Enter your ZIP code into our free quote tool to find the best auto insurance providers for your needs and budget.
Enter your zip code below to view companies that have cheap insurance rates.
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Heidi Mertlich
Licensed Insurance Agent
Heidi works with top-rated life insurance carriers to bring her clients the highest quality protection at the most competitive prices. She founded NoPhysicalTermLife.com, specializing in life insurance that doesn’t require a medical exam. Heidi is a regular contributor to several insurance websites, including FinanceBuzz.com, Insurist.com, and Forbes. As a parent herself, she understands the...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about 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.