In this article, I will discuss the best pay-per-mile car insurance companies, which offer flexible and affordable coverage for low-mileage drivers. These insurance plans allow you to pay based on the number of miles you drive, making them ideal for those who don’t drive often. Let’s explore the top options available in 2025 to help you save on car insurance.
What Is Pay-by-the-Mile Car Insurance?
In a pay-as-you-go car insurance, the cost of coverage is indexed to the number of miles that a driver has covered. Drivers are charged a minimal fee for every mile driven in addition to a low monthly flat fee. This is beneficial to low-mileage drivers since the insurance offered is at a lower cost.
The benefit comes at a cost, however, due to those who drive frequently. Often includes basic levels of coverage, and this is commonly known as ‘pay as you mile’. The charges depend on the customer’s driving patterns and the miles a car has travelled to.
Key Points & Best Pay-Per-Mile Car Insurance Companies In 2025List
| Insurance Provider | Key Features |
|---|---|
| Nationwide SmartMiles | Offers a low daily base rate plus per-mile pricing, with full Nationwide coverage benefits. Ideal for low-mileage drivers. |
| Noblr | Usage-based insurance that considers driving habits like speed and braking. Available in select states. |
| Allstate Milewise | Pay-as-you-go model with a daily base rate and per-mile charge. Includes Allstate’s standard policy benefits. |
| Mile Auto | No tracking device required—drivers report mileage via smartphone. Best for infrequent drivers. |
| Hugo Insurance | Offers flexible, on-demand auto insurance with per-mile pricing, allowing drivers to pause coverage. |
| Auto Insurance | General term for policies, but some companies offer pay-per-mile options tailored to individual needs. |
| Geico | Provides a pay-per-mile program in select states, focusing on affordability and flexible pricing. |
| Progressive | Snapshot program tracks driving habits but doesn’t have a strict per-mile pricing model. Rewards safe drivers. |
| State Farm | Drive Safe & Save program adjusts premiums based on driving habits but is not purely pay-per-mile. |
| Liberty Mutual | RightTrack program monitors driving behavior but doesn’t follow a per-mile pricing structure. |
10 Best Pay-Per-Mile Car Insurance Companies In 2024
1.Nationwide SmartMiles
As one of the best pay-per-mile car insurance options available nationwide in 2024, SmartMiles ensures that drivers pay a low daily base rate along with a per-mile charge. Drivers who do not use their vehicles too often are guaranteed full benefits coverage under Nationwide alongside additional savings for safe driving.
This policy is suitable for those who drive less but still need dependable and affordable auto insurance.
Pros of SmartMiles by Nationwide:
- Overall lower charge with mileage usage pricing.
- Includes roadside coverage assistance by Nationwide.
- Suitable for drivers with lesser mileages looking to save on insurance.
Cons of SmartMiles by Nationwide:
- Costlier for drivers prone to covering higher mileage.
- Not offered in many states.
- Need to have tracking device for mileage monitoring.
2.Noblr
In 2024, Noblr has established itself as a leader in the pay-per-mile car insurance space. It offers personalized pricing based on the user’s mileage, driving habits such as acceleration and braking, and other factors.
Low-mileage and safe drivers will love Noblr since the pay-per-use insurance provider lowers rates for responsible driving. Noblr is a good option for people looking for affordable, usage-based car insurance in a few selected states.
Pros of Noblr:
- Offers specific pricing based on your driving history and miles driven.
- Provides rewards for safe conductors such as gradual braking.
- Does not need a tracking device, users submit their mileage through an app.
Cons of Noblr:
- Only offered in some states.
- Not suitable for drivers who drive long distances.
- Use of restrictive plans when compared to standard providers.
3.Allstate Milewise
Allstate Milewise is one of the best pay-per-mile car insurance options in 2024, offering a flexible pay-as-you-go model with a low daily base rate plus per-mile pricing.
Ideal for low-mileage drivers, it includes Allstate’s standard coverage benefits and rewards safe driving. A great choice for those looking to save on car insurance based on usage.
Pros of Allstate Milewise:
- Daily base rate fees with an additional charge per mile driven.
- Covers Allstate perks, including accident forgiveness.
- Perfect for infrequent road users.
Cons of Allstate Milewise:
- Users must have a device to monitor miles driven.
- Only offered in select states.
- Base daily rate may be expensive for low-mileage users.
4.Mile Auto
Put Mile Auto at the top of your pay-per-mile insurance providers for 2024! If you have low mileage, they are the perfect fit. Users can now report mileage through their smartphones, no more tracking devices.
With clear pricing and no intrusive surveillance, Mile Auto provides effortless, inexpensive alternatives for people with low driving frequency needing affordable pay-per-mile insurance.
Pros of Mile Auto:
- There is no GPS device needed; customers send in their mileage using a phone application.
- Easy and clear pricing structure that charges only for the mileage used.
- Perfect for low mileage drivers who are trying to save money on their premiums.
Cons of Mile Auto:
- Not all states have access to this service.
- Might lack as much flexibility in coverage as a standard insurance company.
- Customers need to provide mileage to receive an accurate cost of insurance.
5.Hugo Insurance
In 2024, Hugo Insurance has soared to the front of the pack as one of the top pay-per-mile insurance providers, catering to customers who seek insurance coverage that is flexible and available on demand.
Clients can turn their insurance on and off at will, which suits infrequent drivers. For low-mileage drivers seeking affordable and easy auto insurance, Hugo offers an excellent option without upfront payments or additional fees, in addition to real-time pricing.
Pros of Hugo Insurance:
- Coverage can be flexible, with the option to pause and resume anytime.
- Costs are reasonable for people who don’t drive often.
- Pricing is upfront and updated in real-time as driving occurs.
Cons of Hugo Insurance:
- Still in the process of expanding to more areas.
- Not the best option for clients who drive often.
- A smartphone is required to manage Plan and report mileage.
6.Auto Insurance
Auto Insurance firms offering pay-per-mile policies in 2024 have economical and simple solutions for low-mileage drivers.
Since costs are determined by distance traveled, these plans greatly benefit those who have infrequent driving schedules. Perfect for frugal drivers, pay-per-mile auto insurance enables users to minimize costs while retaining comprehensive coverage.
Pros of Auto Insurance (Pay-Per-Mile):
- Excellent value for money as low-mileage drivers only pay for the miles driven.
- Coverage is tailored according to the user’s preferences and requirements.
- Great for drivers who rarely use their vehicles but would like to have full coverage on their policy.
Cons of Auto Insurance (Pay-Per-Mile):
- Not ideal for high-mileage drivers or frequent travelers.
- Some providers do not offer it in specific locations.
- Could necessitate tracking devices or smartphone applications to check on the user’s miles driven.
7.Geico
In 2024, Geico stands out for its premium pay-per-mile insurance plan, which is offered in certain states. The plan features reasonable pricing along with a pay-as-you-drive approach.
With it’s excellent coverage advantages, Geico remains a favorable option for low-mileage drivers looking for budget-friendly car insurance.
Pros of Geico:
- Pay-per-mile pricing is offered in select states.
- Contracts with a reputable insurance company with good customer service.
- Great plan choice flexibility and good coverage options.
Cons of Geico:
- Pay-per-mile coverage is limited to selected states.
- Pay-per-mile policies need a tracking device for mileage.
- Not completely a pay-per-mile program, base rates are fixed.
8.Progressive
As a leading pay-per-mile car insurance company in 2024, Progressive is known for the Snapshot program, which monitors driving, awarding safer drivers with lower rates.
Though not overtly pay-per-mile, it lowers premiums based on behavior and participation. Progressive is best suited for low-mileage, safe drivers, offering flexible rates and discounts with improved driving records.
Pros of Progressive:
- Offers driving behavior-based pricing through the Snapshot program.
- Good value for drivers who tend to drive safely.
- Great option for clients who rarely drive and want customized pricing.
Cons of Progressive:
- Snapshot is not exclusively pay-per-mile; other driving behaviors are also considered.
- Needs the use of a tracker or a mobile device.
- Some regions have program restrictions.
9.State Farm
In 2024, State Farm offers an impressive pay-per-mile car insurance option within the Drive Safe & Save program. Although it is not a conventional pay-per-mile scheme, it modifies its premiums according to the client’s mileage
While providing discounts to safe drivers. State Farm auto insurance is great for careful drivers and low-mileage users as it allows flexible, usage-based pay-per-mile savings.
Pros of State Farm:
- Discounts granted on the Drive Safe & Save initiative rely on safe driving.
- Policies and driving behavior can be effortlessly managed through the handy mobile application.
- Different types of coverage are tailored to different requirements.
Cons of State Farm:
- Driving habits are taken into greater consideration than actual miles driven in the car, making it less of a pay-per-mile service.
- Discount availability is dependent on the state.
- If drivers do not use the car often, it may not be cost efficient.
10.Liberty Mutual
Liberty Mutual’s RightTrack program stands out in 2024 as one of the best options when considering pay-per-mile car insurance plans. The RightTrack™ program is designed to help drivers save on premiums
Tracking miles driven along with driving behavior and offering discounts for safe driving, although it is not entirely pay-per-mile. When combined with other auto insurance discounts, it is personal and affordable for low mileage drivers, making it ideal for cautious drivers.
Pros of Liberty Mutual:
- Discounts may be available for good drivers through the RightTrack program.
- There are customizable plans with many coverage options.
- Manages policies conveniently through a mobile application.
Cons of Liberty Mutual:
- RightTrack does not reward driving mileage, instead it rewards the driver’s behavior.
- Discounts are not always available in every state.
- Driving behavior must be tracked through a device that the company installs.
Conclusion
In 2025, the leading pay-per-mile car insurance companies offer budget-friendly and convenient plans for low-mileage drivers. For custom pricing and usage-based plans, Nationwide SmartMiles, Noblr, and Allstate Milewise are the frontrunners.
These plans are great for infrequent drivers, but do take into consideration the other factors such as the plan’s premiums, availabitily, the coverage options, and pricing structure in order to determine the best fit for your needs.
