To provide at least 3 least expensive pay-by-the-mile insurance providers in Nevada and California, including the name of the auto insurance provider, instructions on how to buy, and pricing details.
Insights on Pay-by-the-Mile/Pay-Per-Mile Insurance
In pay-by-the-mile insurance, more than half the rate can be based on mileage, typically making it lower than a standard policy rate for drivers who drive their cars less than the U.S. average of 13.500 miles per year. However, the base rate of the policy is still determined by the factors that determine standard insurance policies such as driver demographics, driving record, type of vehicle, location, and so on.
Pay-per-mile insurance requires the driver to keep a device in the car "that plugs into a port near the steering wheel (called the OBD-II)", and tracks the mileage. Therefore, the car may need to be of model year 1996 or newer for the device to work, depending on the insurer, while some devices might be incompatible with hybrid vehicles."
The leading companies that offer auto insurance by the mile are Metromile, Milewise from Allstate, SmartMiles from Nationwide, and Mile Auto Insurance.
Factors to Consider in Choosing Pay-Per-Mile Insurance
Amount of distance driven as an underestimation could mean paying more in the long run.
10% discount for safe driving after the first renewal.
SmartMiles Road Trip Exception, where only the first 250 miles count on a single day.
Most vehicles manufactured after 1996 are eligible; but some hybrid and diesel-powered cars may be incompatible with the SmartMiles device.
Summary of Findings
During our preliminary hour of research, we provided insights on what pay-per-mile insurance is, and highlighted some factors to consider when making the decision to take it up. From our research, we found that pay-per-mile insurance is not yet available nationwide, and therefore only provided the two choices available in Nevada (Las Vegas) and California, as these were provided as the geographical locations that the car will be driven. We did not find clear information on changes in the policy or rates in a case where the driver is not the owner of the car as this information was not publicly available.
We also found that there are other pay-as-you-go insurance options that are available and could of interest in order to find the cheapest auto insurance option such as pay-per-hour and pay-how-you-drive car insurance.
Only the project owner can select the next research path.