What Metromile insurance is and how you pay for it

Metromile is a car insurance company that charges you based on how many miles you drive each month, rather than a flat monthly or annual rate. You pay a base rate that covers your car when it's parked, then a per-mile charge (typically between $0.04 and $0.10 per mile, depending on your state and coverage level) for every mile you actually drive. The company uses a small plug-in device that connects to your car's diagnostic port to track mileage automatically.

This model works differently from traditional insurance, where you pay the same amount whether you drive 5,000 miles a year or 25,000 miles a year. With Metromile, a driver who works from home and uses their car only for errands might pay significantly less than someone with a long commute, even if both have identical coverage and driving records.

The base rate covers liability, collision, and comprehensive coverage (if you choose those options) while your car sits in your driveway. You only start paying the per-mile rate when you turn on the ignition and the device records movement. Metromile operates in most U.S. states, though availability and pricing vary by location and your driving history.

Key Takeaways

  • Metromile charges a base monthly rate plus a per-mile fee, so drivers who log fewer than 10,000 to 12,000 miles per year typically see lower annual costs than traditional insurance.
  • A small plug-in device tracks your mileage automatically through your car's diagnostic port; you don't manually report miles.
  • The base rate covers your parked car; the per-mile charge only applies when you're actually driving.
  • Metromile works best for people with predictable, low-mileage driving patterns—remote workers, retirees, or second-car owners.
  • You can view your mileage and costs in real time through the Metromile app, which also offers driving feedback and safety features.

Who this insurance model actually saves money for

Metromile makes the most financial sense if you drive significantly below the national average. The average American drives around 12,000 to 15,000 miles per year, but that number masks huge variation. If you work from home, use public transit for your commute, or keep a second car for occasional use, you might drive 5,000 to 8,000 miles annually. At that mileage level, Metromile's per-mile model can cost 20 to 40 percent less than a traditional policy with the same coverage.

The math changes quickly once your annual mileage climbs. If you drive 15,000 miles per year, Metromile may cost roughly the same as a standard policy. Above 20,000 miles annually, traditional insurance often becomes cheaper because you're paying the per-mile fee on every additional mile. A long commute, frequent road trips, or a job that requires driving will push you toward traditional insurance.

Metromile also appeals to people who want visibility into their driving costs. The app shows you exactly how much each trip costs and tracks your total monthly mileage, which some drivers find motivating or straightforward useful for budgeting. If you're curious about your actual driving patterns or want to see the direct link between miles and insurance cost, that transparency can be valuable even if the annual savings are modest.

How the mileage tracking device works and what it records

Metromile provides a small plug-in device (about the size of a USB adapter) that you insert into your car's OBD-II port. This is a standardized diagnostic port found on nearly all cars manufactured after 1996, usually located under the steering wheel or dashboard. The device reads mileage data directly from your car's odometer and sends that information to Metromile's servers via cellular connection.

The device does not track your location, route, or speed—only the total miles your car travels. Metromile's privacy policy states that it collects mileage and basic vehicle diagnostics, but not GPS coordinates or detailed driving behavior. This is an important distinction: you're not being monitored for where you go, only how far you drive. The device has a small light that indicates it's active and connected.

You can view your mileage in real time through the Metromile mobile app, which updates as you drive. The app also shows your current month's mileage total, estimated cost, and a breakdown of trips. If the device disconnects or malfunctions, Metromile typically allows you to manually report your odometer reading, though this is less common once the device is properly installed.

Comparing Metromile rates to traditional insurance quotes

To know whether Metromile will actually cost less, you need to run a quote and compare it directly to traditional insurers. Metromile's base rate and per-mile charge both vary by state, your age, driving record, coverage limits, and deductible choices. A 35-year-old with a clean record in California might pay a $15 base rate plus $0.05 per mile, while a 25-year-old with an accident in Texas might pay $25 base plus $0.08 per mile.

The easiest comparison is to calculate your expected annual cost at Metromile based on your typical mileage, then get quotes from two or three traditional insurers (GEICO, State Farm, Progressive, or your state's regional carriers) for the same coverage levels and deductibles. Multiply Metromile's per-mile rate by your annual mileage, add the monthly base rate times 12, and you have your estimated yearly cost. If that number is 15 to 30 percent lower than traditional quotes, Metromile is likely worth considering. If it's within 5 to 10 percent, the difference is small enough that other factors—customer service, claims handling, or discount availability—might matter more.

Keep in mind that traditional insurers often offer discounts for bundling home and auto policies, maintaining good credit, completing a defensive driving course, or having safety features in your car. Metromile's pricing model is more straightforward but offers fewer discount opportunities, so the headline rate you see is closer to what you'll actually pay.

What coverage options Metromile offers and what you choose

Metromile offers the standard coverage types: liability (bodily injury and property damage), collision, comprehensive, and uninsured/underinsured motorist protection. You choose your coverage limits and deductibles the same way you would with any other insurer. The difference is that your liability and uninsured motorist coverage are included in the base rate (they explore whether you're driving or parked), while collision and comprehensive are optional add-ons you can decline if your car is paid off and you're comfortable with that risk.

Deductible options typically range from $250 to $1,000. A higher deductible lowers your base rate but means you pay more out of pocket if you have a claim. For low-mileage drivers, a higher deductible often makes sense because the probability of a claim is lower, and the monthly savings add up over time.

Metromile does not offer roadside information, rental car reimbursement, or other add-on coverages that some traditional insurers bundle in. If you want those features, you either go without or purchase them separately through a roadside information service like AAA.

When Metromile might not be the right fit

Metromile is not a good choice if you drive more than 15,000 to 18,000 miles per year. At that mileage level, you're paying the per-mile fee on a large volume of driving, and traditional insurance becomes more economical. If your driving is unpredictable—some months you drive 3,000 miles, other months 20,000—the per-mile model can make budgeting harder because your bill fluctuates significantly.

Metromile also requires a car manufactured after 1996 with a functioning OBD-II port. Older vehicles, some specialty cars, or vehicles with diagnostic port issues cannot use the device. If you own a classic car, a very new model with a proprietary diagnostic system, or a vehicle with a damaged port, you'll need to contact Metromile to confirm compatibility before signing up.

Additionally, if you value extensive add-on coverage, multiple discount opportunities, or a large local agent network, traditional insurers may serve you better. Metromile operates primarily online and by phone, so if you prefer face-to-face service, that's another reason to look elsewhere.

How to get a Metromile quote and what information you'll need

To get a quote, visit Metromile's website and enter your zip code, vehicle information (year, make, model, VIN), driving history, and desired coverage levels. The process takes 10 to 15 minutes. Metromile will show you an estimated base rate and per-mile charge based on that information, along with a projected monthly and annual cost if you enter your expected annual mileage.

You'll need your driver's license, vehicle registration, and current insurance information (if you have it). If you've had accidents or violations in the past seven years, have those details ready. Metromile uses this information to calculate your rate, just as traditional insurers do.

Once you've reviewed the quote and decided to move forward, you can purchase a policy online. Metromile will mail you the plug-in device, which typically arrives within a few business days. You install it yourself by plugging it into the OBD-II port, and it begins tracking mileage when ready. Your coverage becomes active on the date you choose, and your first bill reflects the base rate plus any mileage you've driven since set up.

Frequently Asked Questions

Does Metromile track where I drive or just how far?

Metromile tracks only total mileage, not location or route. The device reads your odometer and sends that data to Metromile's servers. It does not use GPS and does not record where you go or how fast you drive. Your privacy is limited to mileage information only.

What happens if the tracking device stops working?

If the device disconnects or malfunctions, Metromile typically allows you to manually report your odometer reading through the app or by phone. The company will work with you to may support your mileage is recorded accurately. If the device fails, Metromile will usually replace it at no cost.

Can I switch back to traditional insurance if Metromile doesn't work out?

Yes. You can cancel Metromile at any time and switch to another insurer. There are no long-term contracts or early cancellation penalties. If you cancel mid-month, Metromile typically refunds the unused portion of your base rate on a prorated basis.

Does Metromile work with older cars?

Metromile requires a car with a functioning OBD-II diagnostic port, which is standard on vehicles manufactured after 1996. Some older or specialty vehicles may not be compatible. You can check your vehicle's compatibility on Metromile's website or by contacting their customer service before purchasing a policy.

How does Metromile handle claims?

You report a claim to Metromile through the app, website, or phone, just as you would with any other insurer. Metromile works with a network of repair shops and adjusters to process claims. The company does not offer rental car coverage or roadside information as standard add-ons, so you'll need to arrange those separately if you need them after an accident.