This article includes links which we may receive compensation for if you click, at no cost to you.
I have been using Metromile car insurance since February 2015, when they were still a pretty new start-up just coming into Illinois.
I went looking for cheaper car insurance since I live in downtown Chicago and rarely drive my car. In reality, I could probably get by without a car, but I own my garage spot, and I’ve owned the car for a long time.
In the past 6 years, I’ve only put a little over 13,000 on my SUV. Still, living downtown can get crazy sometimes, and my wife and I like escaping into Michigan for a long weekend, and in the summer, sometimes we like to just get out and take a drive. After my car insurance premiums increased to $80 per month (that’s $960 a year), I started looking for a cheaper option!
After spending about an hour researching online and looking at quotes from a lot of the usual car insurance companies you see on TV (Progressive, The General, Allstate, and Esurance) I couldn’t even find a price that came close to the $80 a month I was already spending.
Was I actually getting a deal on car insurance?
IN THIS ARTICLE:
Metromile Car Insurance
By now, I was determined, so I kept digging. I knew I could find cheaper car insurance, but at the time, I had no idea pay-per-mile insurance was even a thing. Finally, I came across an ad for Metromile after searching for “low mile car insurance” on Google.
Is Metromile Legit?
It was a pretty easy sell -- Metromile is a car insurance company built for people who don’t drive their cars much, and they charge a set fee per mile (aptly known as pay-per-mile insurance). This sounded exactly like what I needed.
At first, I thought that Metromile only provided insurance for Uber drivers (which I am not) -- but this is thankfully not the case. After doing a bit of research on the San Francisco start-up, who has a killer idea and some substantial silicon valley funding, I decided to get a quote on their website, which was super easy to use (thanks, UX/UI designers).
Is Metromile Insurance Cheaper?
The whole process was super simple, and the best part was the quote they gave me to insure not only me but also my girlfriend for a base rate of 95 cents/day (approximately $29/month) plus 4.8 cents per mile. I calculated that my average monthly bill would decrease from $80 to about $30 a month.
Done. Sold. I signed up immediately and have been using Metromile now for over three and a half years.
Where Is Metromile Available?
Metromile is currently available in the following 8 states:
- New Jersey
As you can see, Metromile has limited availability but the company plans to expand coverage to other states in 2020.
How Does Metromile Insurance Work?
After signing up, I was able to print out an insurance card quickly that I could put in my car while I waited for the Metromile tracking device to arrive at my house.
Track Your Mileage
The way that Metromile works is that they send you a small device that plugs into your car’s internal computer so they can track how many miles you have driven based on GPS. This tracking device works on most vehicles that were made in the years after 1995.
All new users have one week to plug the device into their car without getting charged a penalty, and it is crucial to keep the device plugged in at all times or else! (Metromile are sufficiently vague on this issue on their forums, but they evidently either contact you or charge you a fee if it’s unplugged) -- so just keep it plugged in.
I haven’t had any issues with the device falling out or unplugging (a few people have complained it drained their car battery) -- but not mine, and the device worked immediately when I plugged it in. The cool thing is that the GPS is pretty strong, and I can see when my car is parked two levels down in my underground garage.
Connect With Your Mobile Device
After plugging in the device, I connected it to my iPhone app and got an email that everything was connected and tracking properly. That was it.
Metromile Insurance Coverage is Awesome!
When I started looking for car insurance, I was worried that I would need to sacrifice my coverage when searching for a cheaper rate. Still, Metromile was actually able to give me better coverage for cheaper than Geico and the other companies that I checked out.
Here is my actual current policy and the base pricing for my car and the coverage. Super solid and way more than most people need.
The Metromile Dashboard
To see how well the app worked, I then took my car out for a 5-mile drive to run a few errands, and when I got home, I checked out the app to see my journey.
I was impressed that Metromile worked as described -- I could see the miles that I had driven and where I had driven. Now I have access to an online platform and the Metromile iPhone app that gives me a ton of information on my driving patterns and logs of recent trips that I have made. It also shows me where my car is parked and if I have any mechanical issues.
Here is a recent screenshot of the dashboard and my last month’s bill. The cost of my car insurance actually went down!
Is Metromile Right For You?
I have a fascination and passion for start-ups, and I enjoy supporting and testing out new technologies like Metromile. When I saw that I could probably save $500-600/year it was a no-brainer to test out the service.
So far, I am happy with Metromile, and my average monthly bill (even with a 1,000-mile road trip recently) has only been between $30-$52, so much cheaper than that $80 I was previously paying with GEICO. Of course, the real test for any car insurance company is when you need to file a claim -- which I haven’t had to do yet and hopefully will never have to do.
If I do, I will keep you posted on what happens, but for now, I couldn’t recommend Metromile more highly if you don’t drive much, and even if you do, it is at least worth getting a quote to see what you could save.
Get a Free Quote with Metromile -- it will likely save you a lot of money. Then invest the difference.
Join Over 50,000 Subscribers
Chapter 1 of my bestselling book Financial Freedom
Free 60 Minute Financial Freedom course
Free 60 Minute Investing course
How to Start A Profitable Side Hustle [PDF]