Metromile is an insurance company that based its strategy on offering the service for low costs, depending on the miles you drive per month. Thanks to its power to offer premium rates, the innovative work approach has been highlighted by large U.S. companies such as Forbes and Crunchbase.
Although the company has a good reputation for its strategy and innovative way of working, it offers insurance tailored to each customer’s needs and competitively priced in the market; what do drivers say about the insurer? We made a guide to explain how good Metromile insurance is and its advantages and disadvantages.
About Metromile insurance. Is it a good option?
Metromile is an automobile insurance company that offers its services exclusively in payments per miles driven per month. The client will pay for the miles driven during the last four weeks. It is a good alternative if you live in a small city where you do not accumulate many miles. It is highly recommended for drivers who do not exceed 10,000 miles annually.
In addition to these advantages and low costs, Metromile has a very easy cancellation process. Suppose the client no longer wants the service or prefers another modality. In that case, the company opens the doors so they can withdraw whenever they wish, without additional payments or invitations to other more attractive plans.
The company offers a trial period that allows you to verify that the “Pulse” device, whose purpose is to count the miles you travel during the month, works correctly and operates within your location. In some cases, customers reported that it loses signal in certain sectors, which imposes higher fees.
In any context, you are a good candidate for this type of insurance, if:
- You have low monthly mileage
- You use public transportation more frequently than your car to commute to work or move around regularly.
- Ensure a second vehicle is used less frequently than your main vehicle.
How much does Metromile auto insurance cost?
The rates enjoy a great reputation thanks to their low costs. This process is divided into a base rate and a per-mile rate. The amount of each is established using factors commonly used by insurers, such as age, credit history, and driver history. In the following lines, we will outline these two parts in which the payments are divided.
- Base rate: This monthly fee corresponds to the number of days in a month. The rate remains in effect for the term of your insurance; it will include additional payments for longer months. You will pay the base rate for the following month on each invoice.
- Mileage rate: This is the amount paid for the miles driven for a month. Will credit the number of miles for the previous month on the invoice
It is important to consider that the base and per-mile rates may change depending on the level of coverage in the area where you drive or your situation. In both cases, your age, credit history, driving behavior, vehicle type, and more are considered.
Metromile Pulse Device
One of the things that can change your monthly payment is the Metromile Pulse device. The company sends the small wireless device to drivers that plug into the car’s diagnostic port; this way, the company can count your miles. The device also estimates the amount to pay based on your location. For example, in Arizona, Oregon, Illinois, and Virginia, the insurer takes these habits into account when calculating your payment:
- What days of the week do you drive the most?
- What are the hours of the day you go?
- What is the average speed at which you go?
On the other hand, Metromile in California, New Jersey, Pennsylvania, and Washington does not consider the previously mentioned habits.
Metromile Coverage and Discounts
Before purchasing any insurance, it is important to consider the level of coverage. Most states require auto insurance to drive, and the coverage requirements change accordingly. In any case, these are the types of coverage offered by Metromile:
- Bodily Injury and Property Damage Liability: this is the typical insurance plan most drivers take out where the company is responsible for costs for injuries, deaths, or damage caused to property and travelers in an accident
- Uninsured/Underinsured Motorist Coverage: This type of plan assumes payment of medical expenses and property damage following an accident against an uninsured or underinsured motorist
- Collision Coverage: Metromile assumes the cost of repairing traffic accidents, regardless of who is at fault. This type of insurance is often used for car loans or rentals.
- Comprehensive coverage: Includes the cost of repairing out-of-control events, including weather, hitting an animal, theft, and vandalism
In addition to these types of coverage, it offers additional options specific to some customers. Among the alternatives you can find:
- Rental reimbursement
- Pet injury protection
- Glass repair with no deductible
You can obtain some of these discounts, depending on your state of residence:
- Having alarms in your vehicle
- Anti-theft devices or auto repossession
- Having accidents that are not your responsibility
- Continuous coverage
- Mature driver
- Not having points on your driver’s license
- Having safety equipment
Metromile insurance VS traditional auto insurance
Considering Metromile’s offer compared to traditional auto insurance, with the former, you can save more money if you use the vehicle infrequently and receive the same coverage.
If you are a driver who uses your car frequently and needs it daily, we recommend you opt for a traditional alternative.