Pay-Per-Mile Auto Insurance: Is this the right policy for me?

Pay-Per-Mile Auto Insurance

Savings on average of 31% compared to traditional insurance at 8,000 annual miles.

Perfect for low mileage drivers - less than 650 miles a month or 8,000 miles a year.

Same protection as traditional policy.

Secured device installed in your car for easy mileage reading.

Pay Less
When You Drive Less

Pay-Per-Mile insurance is a unique type of car insurance policy that is new to Washington State. This policy determines how much you pay for your insurance premium by the number of miles you drive.

This new type of car insurance policy has become increasingly popular among folks who are:

Working Remotely


College Students

Commuting via Public or Company Transportation

What is Pay-Per-Mile insurance?

When you spend less time on the road, you also reduce the chance of getting into car accidents. A Pay-Per-Mile policy allows insurance companies to consider this lower risk in evaluating a driver's premium.

In other words, the less you drive, the lower your premium is under Pay-Per-Mile insurance. 

Pay-Per-Mile insurance offers the same coverage limits and benefits as standard traditional auto policies.

How does the premium calculation work?

There are two rates that you will see in your insurance quote:

  • There is a base rate. This is a daily fixed premium regardless if you drive or not.
  • There is a per-mile rate. This is a variable premium that is only charged when you drive.



Base Rate Per Month

6 cents

Per Mile Rate

600 miles

Driven Per Month

$45 + ($0.06 x 600) = $81


Total Premium Per Month

Your Individual Rates

Both the Daily Rate and Per Mile Rate are determined by the same factors as a traditional car insurance premium rate:

Age and Marital Status

Driving History

Car: Age, Brand & Model

Current Address

Insurance History

(click on the icons  )

Is Pay-Per-Mile policy right for me?

If you are driving an average of 650 miles a month or less than 8,000 miles annually, you are a great candidate for the Pay-Per-Mile policy.

Our recommendation is to ask your insurance agent to provide a comparison breakdown using 3 different mileage scenarios: 

Expected Annual Mileage

10% Below the Annual Average

10% Above the Annual Average

This way you can have a better idea of what your Pay-Per-Mile premium might be including fluctuations in miles driven. It is especially useful if your premium is near the breakeven point compared to traditional insurance.

You have the option to toggle back to traditional insurance

The insurance program we offer has the flexibility of toggling back and forth between traditional insurance and Pay-Per-Mile. So if your driving habits or working situations have changed, you can easily switch back to the traditional policy and vice-versa. 

How do I get started with setting up an account?

To get started on a Pay-Per-Mile policy, you will need to deposit a small down payment and set up an automatic payment account. The automatic payment account is where your insurance company will deduct your premium, either calculated per day or per month depending on available options.

Pay-Per-Mile Auto Insurance required OBDII port.

In order for insurance companies to accurately determine the number of miles driven, you are required to install a secured device into OBD-II (On-Board Diagnostic II) port for each of your cars enrolled in the Pay-Per-Mile policy. All cars built after January 1996 are equipped with an OBD II port. 

The OBD II port is usually found under the bottom left area of your dashboard and beneath the steering wheel column. If you have a problem finding the port, give us a call or send us an email, and we will help you locate it.

When plugged in correctly, this secured device allows accurate mileage readings from your car to properly calculate your per-mile premium.