It sounds good, but how can you be sure this type of insurance really makes sense for you? Is it just a trend of the pandemic, or is accounting for infrequent driving part of the future for car insurance?

Save money as an infrequent driver

Simply put, pay-per-mile means you drive less and save more. If you are a remote worker, it may be worth looking into this type of car insurance.

But another factor to consider is your driving habits when you do drive. Since pay-per-mile car insurance costs are based on driving habits, your rate could increase if your driving habits aren’t good.

There are different ways car insurance companies can monitor your driving, although telematics devices are commonly used to track your speed and mileage. Car insurance companies use this data to adjust your insurance rates.

For the most part, pay-per-mile insurance has a base rate that stays the same each month coupled with the individual per-mile cost.

It’s worth considering if you’re still working remotely and plan to do so for a while, and have a

clean driving record

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Car insurance costs during the pandemic

MORE: If You’re Driving Less During the Pandemic, You May Be Overpaying for Insurance

In 2020, there were fewer drivers on the road since many offices went remote. Pay-per-mile insurance makes a lot of sense in this case.

In fact, the pandemic has reportedly caused an increase in pay-per-mile car insurance programs that allow drivers to only pay for the miles they drive each month rather than a flat fee.

Bloomberg

reported that during the pandemic, Allstate saw a large increase in the number of cars insured through its Milewise program. In fact, the number was about six times higher in 2020 compared to 2019. The program, which is only available in certain states, tracks the customer’s driving with a plug-in device.

It was reportedly mostly new drivers who were interested in Allstate’s pay-per-mile insurance program, although some existing customers switched to the program as they cut back on driving.

Another company offering this type of insurance is

Nationwide

, which offers its SmartMiles programs in 41 states.

Find affordable coverage that works for you

Jerry

can help you find the right type of coverage at the right price, whether or not you decide that pay-per-mile car insurance is for you.

Types of Insurance

Written By

Lisa Steuer McArdle · Expert Insurance Writer

Lisa Steuer McArdle is an insurance writer with over 15 years of experience writing and editing content in a variety of industries, including insurance and personal finance. Lisa specializes in taking deep dives into make and model-specific content that helps car owners and buyers make solid money-saving choices. Lisa has written over 350 articles for Jerry on topics including electric vehicles to classic cars. Before joining Jerry, Lisa worked in various aspects of the printing industry as a content writer, developer, and editor and earned her bachelor’s degree in creative writing from Lycoming College.

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