Best Pay-As-You-Go Auto Insurance in 2025 (Top 10 Company Ranking)
Nationwide, Allstate, and State Farm are the best pay-as-you-go auto insurance providers. Pay-as-you-go insurance charges based on miles driven, starting at $45 monthly. Nationwide offers 40% discounts for safe drivers, Allstate provides advanced telematics, and Travelers provides superior data privacy.
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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 25, 2025
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UPDATED: May 25, 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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18,155 reviewsGet the best pay-as-you-go auto insurance with Nationwide, Allstate, and State Farm, providing coverage as low as $45 per month.
Our Top 10 Company Picks: Best Pay-As-You-Go Auto Insurance| Company | Rank | Low-Mileage Discount | UBI Discount | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | 40% | 40% | Safe Drivers | Nationwide |
 | #2 | 30% | 30% | High-Mileage Drivers | Allstate |
 | #3 | 30% | 30% | Reliable Service | State Farm |
 | #4 | 50% | 30% | Low-Mileage Drivers | Metromile |
 | #5 | 6% | 30% | Roadside Assistance | Root |
 | #6 | 30% | $231/yr | Custom Tracking | Progressive |
 | #7 | 30% | 30% | Competitive Discounts | Liberty Mutual |
 | #8 | 10% | 30% | Budget Conscious | Farmers |
 | #9 | 30% | 25% | Digital Management | Geico |
 | #10 | 10% | 20% | Exclusive Benefits | The Hartford |
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: Best for Safe Drivers
Pros
- Superior Safety Rewards: Safe drivers receive up to 40% low-mileage discounts when enrolled in Nationwide SmartMiles, plus an additional 40% UBI discount for excellent driving behavior.
- 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.
- High-Mileage Driver Benefits: Our Allstate auto insurance review confirms drivers can earn up to 30% low-mileage discounts plus 30% UBI discounts for safe driving habits.
- 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 – State Farm: Best for Reliable Service
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.
- Competitive Discount Structure: Drivers can earn up to 30% low-mileage discounts and 30% UBI discounts by maintaining excellent records in State Farm’s pay-as-you-go program.
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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#4 – 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.
- Exceptional Low-Mileage Rewards: Monthly statements break down exactly how each journey affects your pay-as-you-go rate, with drivers earning up to 50% low-mileage discounts.
- 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.
#5 – Root Insurance: Best for Roadside Assistance
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).
- Superior Roadside Benefits: Root offers comprehensive roadside assistance with their pay-as-you-go policies, plus drivers can earn up to 6% low-mileage discounts and 30% UBI discounts.
- 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.
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.
#6 – Progressive: Best for Custom 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).
- Unique Pricing Structure: Progressive offers pay-as-you-go drivers up to 30% low-mileage discounts and annual savings of $231 for safe driving behavior.
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.
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#7 – Liberty Mutual: Best for Competitive Discounts
Pros
- Comprehensive Discount Portfolio: Liberty Mutual pay-as-you-go customers receive up to 30% low-mileage discounts and 30% UBI discounts for safe driving behavior.
- Maximum Safety Incentives: Careful drivers can stack multiple discount types 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 additional reductions 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.
#8 – Farmers: Best for Budget Conscious
Pros
- Budget-Friendly Protection: Farmers offers full coverage with a pay-as-you-go rate of $125, the lowest comprehensive option on this list. Learn 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.
- Budget-Conscious Savings: Budget-conscious customers can earn up to 10% low-mileage discounts and 30% UBI discounts 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.
#9 – 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.
- Competitive Discounts: Customers can combine their pay-as-you-go program with home insurance to receive up to 30% low-mileage discounts and 25% UBI discounts beyond usage-based savings.
Cons
- Limited Coverage Options: Geico’s pay-as-you-go program lacks comprehensive add-ons like accident forgiveness and rideshare coverage that competitors include.
- Technology Learning Curve: Some customers report difficulty navigating Geico’s digital-first approach without traditional agent support for pay-as-you-go questions.
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#10 – The Hartford: Best for Exclusive Benefits
Pros
- Exclusive Senior Benefits: The Hartford specializes in pay-as-you-go insurance for drivers over 50, offering unique benefits like recovery assistance and accident forgiveness tailored to mature drivers.
- Affordable Entry Point: With minimum coverage starting at just $50, The Hartford provides competitive rates for budget-conscious pay-as-you-go customers.
- Specialized Coverage: The Hartford includes specialized benefits in their pay-as-you-go program that other providers charge extra for, including 10% low-mileage discounts and 20% UBI discounts.
Cons
- Age Restrictions: The Hartford’s pay-as-you-go program primarily targets drivers over 50, limiting availability for younger customers seeking usage-based insurance.
- Limited Technology Integration: The Hartford’s pay-as-you-go tracking relies on older monitoring methods compared to smartphone-based competitors like Root or Progressive.
Pay-As-You-Go Auto Insurance Cost
Pay-as-you-go auto insurance is a usage-based policy where premiums are based on how much or how well you drive, offering savings for low-mileage or safe drivers. When comparing the best companies for pay-as-you-go car insurance, it’s clear that options vary widely in both features and reliability.
Pay-As-You-Go Auto Insurance Monthly Rates 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 |
How much pay-as-you-go car insurance costs depends on the provider and coverage, but the table highlights clear leaders in affordability. Each pay-as-you-go insurance provider uses different program names, tracking methods, and discount structures.
How Top Pay-As-You-Go Programs Work| Company | Program Name | How It Works | Tracking Method | Key Features |
|---|---|---|---|---|
| Milewise | Pay per mile, monitor driving habits | Mobile app | Flexible mileage, no upfront costs |
| Signal | Pay based on driving behavior | Mobile app | Safe driving rewards, discounts |
| DriveEasy | Track driving, get discounts | Mobile app | Behavior-based discounts |
| RightTrack | Pay per mile, rewards for good driving | OBD-II device | Monitoring device, safe driving tips |
| Pay-per-mile | Pay for mileage, monitor driving | GPS device | Low rates, coverage for mileage |
| SmartMiles | Pay per mile based on driving habits | OBD-II device | Track driving, get rewards |
| Snapshot | Pay based on driving style and miles | OBD-II device | Rewards for safe driving |
| Root Insurance | Pay based on actual driving behavior | Mobile app | Personalized rates, driving-based |
| Drive Safe & Save | Discounts for safe driving and miles | Mobile app/OBD-II | Discount for safe driving |
| Telematics | Pay based on driving behavior | OBD-II device | Track driving, get personalized rates |
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.
Pay-As-You-Go Auto Insurance Coverage
Pay-as-you-go automobile insurance contains the same types of basic coverages as conventional car insurance policies. Knowing what each coverage guards enables you to select the proper level of protection for your driving requirements.
- Liability Coverage: Covers injuries and property damage you inflict on other people, such as bodily injury and property damage liability that most states require.
- Collision Coverage: Pays for repairs to your vehicle after collisions with other vehicles or objects, whether at fault or not, with a deductible you pay upfront.
- Comprehensive Coverage: Covers non-collision damage such as theft, vandalism, weather damage, and animal collision with a deductible factor.
- Personal Injury Protection (PIP): Pay for medical bills, lost earnings, and necessary services for you and passengers despite fault in respective states.
- Uninsured/Underinsured Motorist Coverage: Insures you against accidents involving drivers with not enough insurance to pay for damages they cause.
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| 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| Company | Bundling | Loyalty | New Car | Safe Driver | UBI |
|---|---|---|---|---|---|
| 25% | 15% | 10% | 10% | 30% |
| 20% | 12% | 12% | 20% | 30% |
| 25% | 10% | 10% | 15% | 25% |
| 25% | 10% | 8% | 20% | 30% |
| 19% | 10% | 11% | 16% | 30% |
| 20% | 8% | 15% | 12% | 40% |
| 10% | 13% | 10% | 10% | 20% |
| 19% | 10% | 11% | 16% | 30% |
| 17% | 6% | 15% | 20% | 30% |
| 5% | 7% | 5% | 8% | 20% |
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.
Hard braking, rapid acceleration, and late-night driving reduce your discount percentage. The key is consistent, gradual driving habits over several months.
Meggan McCain Head of Content
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. State Farm 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. Hugo Insurance also provides competitive pay-per-mile options for qualifying drivers.
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. Hugo car insurance offers competitive rates for drivers seeking usage-based coverage alternatives.
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.
