is  pay per mile car insurance a good value for people that dont drive much?

i saw a cimmercial that some company i forget which is sating save money with them by buying a pay per mile policy so ithe less you drive the less you pay

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  • Anonymous
    2 months ago

    My concern?  That "mileage counter" in theory lowers your insurance if you don't drive "a lot."  On the other hand it reads your driving habits, where the car is at all times (you're home/you're not home), and I don't want my insurance company to know that much about my life.  One device in MY State was recently used as proof in a drug buy - the device indicated that the vehicle had been at the "drug house," even if there for another reason.  I wouldn't put one on my car.

  • 2 months ago

    The way that works is you first got to drive. So you pay regular car insurance price and they(insurer) note the odometer reading on the car.  The NEXT TIME you get yearly insurance they look at your odometer reading & compare it to the original number.  You are allowed a certain number of miles as a minimum number. If you drive a lot, you are at risk a lot more (of getting into an accident) Less driving means more time parked so less chance of accident.

    They are trying this out...as it seems more FAIR. People that don't have a car do not pay for car insurance.  This idea only started last year"2019".  Maybe it is $20 off the yearly insurance amount, maybe it is just a gimmick. We will see.

  • 2 months ago

    It depends on what it ultimately costs you in total.  

  • May
    Lv 6
    2 months ago

    I have that plan through Nationwide insurance.  I drive about 5,000 miles per year.  My policy started in mid July 2020 and so far I am happy and am saving money.  They send a "tattletale" device that you plug into your car so they know where and how far you have driven each day.

    You pay a base rate based on the 5,000 mile estimate so be sure that you do not underestimate (or overestimate) your yearly miles because when/if you sign with nationwide they divide your (say) 5,000 miles estimate by 12 (months) you pay the base rate and if you go over the 1/12 monthly mile estimate, you get charged .02¢ per mile for every mile that you drove that month.  Be aware that some people don't like "big brother" looking over their shoulder and if so, this wouldn't be for them. 

    I like it.  It cut my premium by 50% Vs Safeco when I signed up.

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  • GF
    Lv 5
    2 months ago

    It sounds pretty good. You'd have to do the math.

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