Is Pay-Per-Mile Insurance Still Worth It?
Editor’s Rating: 3.9 / 5 | Updated February 2026 | USA Coverage Only
| $782Avg. Annual Ratevs. $1,924 national avg. | 8States AvailableAZ, CA, IL, NJ, OR, PA, VA, WA | 1.8/5Customer ScoreTrustpilot (31 reviews) | $29Base Rate / Mo.+ cents per mile driven |
| 2026 Update: Lemonade, Inc. acquired Metromile in 2022. The pay-per-mile product now operates under the Lemonade brand in select states. Compare quotes from Lemonade, Nationwide SmartMiles, and Root Insurance as the closest alternatives. |
What Is Metromile Auto Insurance?
Millions of American drivers are paying for miles they never drive. If you work from home, live in a walkable city, or only use your car on weekends, you could be overpaying for traditional car insurance by hundreds of dollars a year.
That’s exactly the problem Metromile set out to solve. Founded in 2011 in Redwood City, California, Metromile pioneered pay-per-mile (also called pay-as-you-drive, or PAYD) auto insurance in the U.S. The model is simple: pay a low monthly base rate plus a few cents for every mile you actually drive. The less you drive, the less you pay.
Metromile was acquired by Lemonade, Inc. in 2022. Since then, the Metromile brand has continued operating in eight states, though the product is increasingly integrated with Lemonade’s broader insurance ecosystem. This review covers what Metromile offers today, how real customers rate it, and whether it’s the right fit for you in 2026.
Why So Many Drivers Overpay for Car Insurance
Traditional auto insurance calculates your premium based on estimated annual mileage, your ZIP code, age, driving history, and vehicle type. The catch: whether you drive 3,000 miles a year or 30,000, your risk profile is largely treated the same way.
The share of U.S. adults working from home jumped from under 6% in 2019 to over 15% in 2022, meaning tens of millions of Americans dramatically cut their annual mileage without seeing a corresponding drop in their insurance bill. Pay-per-mile insurance closes that gap directly.
How Metromile Works: Rates, Billing & the Pulse Device
Your Metromile bill has two components: a flat monthly base rate and a per-mile charge. The base rate starts as low as $29/month, and the per-mile rate is typically a few cents (e.g., $0.06/mile). Both rates are personalized based on your age, vehicle, driving habits, and location.
Sample Monthly Rate Breakdown
| Component | Example Rate | Example Cost |
| Monthly base rate | $29/month | $29.00 |
| Per-mile rate | $0.06/mile | — |
| Miles driven (300 miles) | 300 x $0.06 | $18.00 |
| Total monthly bill | $47.00 |
Potential Annual Savings by Mileage
| Miles Per Year | Estimated Savings vs. National Average |
| 2,500 miles | ~$947/year |
| 6,000 miles | ~$741/year |
| 10,000 miles | ~$541/year |
Metromile does not charge for miles driven over 250 per day (or 150 in New Jersey), so the occasional long road trip won’t blow up your bill.
The Metromile Pulse Device
Once you sign up, Metromile mails you a small telematics device called the Pulse. It plugs into your car’s OBD-II diagnostic port (standard on vehicles made after 1996) and securely transmits your mileage data to Metromile in real time. The companion app also provides:
- Trip history and fuel economy monitoring
- GPS car locator
- Check-engine light troubleshooter
- Roadside assistance
- 24/7 claim filing
- Street sweeping alerts in select cities
One practical note: if you go on vacation or leave your car parked for an extended period, set a travel grace period through the app so you aren’t charged ‘no signal’ fees.
Metromile Discounts Available in 2026
Metromile’s discount lineup is lean compared to legacy carriers, but the pay-per-mile structure itself is the biggest savings tool for eligible drivers.
- Safe Driving Discount: Metromile may reward fault-free driving and phone-free habits depending on your state.
- Multi-Policy Discount: Bundle with Lemonade’s renters, homeowners, pet, or life insurance products to unlock savings.
- Multi-Car Discount: Add two or more vehicles to your policy and your base and per-mile rates drop automatically.
There is also a ‘Ride Along’ free trial that lets you test-drive the pricing model for 17 days before committing, potentially locking in rates up to 15% below your initial quote.
Metromile Pros and Cons
| PROS | CONS |
| ✓ Average annual rate of $782 vs. $1,924 national average | ✗ Only available in 8 states |
| ✓ Base rate as low as $29/month | ✗ Rates have increased sharply since Lemonade acquisition |
| ✓ Ideal for remote workers, retirees, and city dwellers | ✗ Pulse device has reported signal issues leading to bogus charges |
| ✓ No charges for miles driven over 250/day on long trips | ✗ Claims department widely criticized for slow response times |
| ✓ Feature-rich mobile app with GPS, claims filing & roadside help | ✗ Trustpilot score of just 1.8/5 |
| ✓ Pet injury protection included with comprehensive + collision | ✗ No paper billing option |
| ✓ No cancellation fees | ✗ $100 fee if Pulse device not returned within 30 days |
What Real Customers Are Saying: Metromile Reviews
Metromile holds a TrustScore of 1.8 out of 5 on Trustpilot, with 71% of reviewers giving it a single star. While some long-tenured customers praise the concept and low base rates, the most common complaints center on claims handling, faulty devices, and steep rate increases.
| Mike D. April 2024★★★★☆I’ve been with Metromile for over 3 years. Rates have only increased in small increments and even decreased at times. I had one claim and the phone agent was very friendly and helpful. |
| Anonymous Reviewer May 2024★☆☆☆☆I was charged for miles that were not driven and a ‘no-signal’ charge. My car was out of service for a few months and I was charged over 1,000 miles each month. When I notified them, they said they could not reverse the mileage. |
| Andrew G. January 2024★☆☆☆☆I’ve been with Metromile for 3+ years. No accidents or tickets and my rates went up 40% — so high that I can now get similar policies from Progressive or GEICO. I do not recommend Lemonade or Metromile. |
| Fair Reviewer April 2024★★★★☆I have had Metromile for years and used them for a major accident. They handled everything with the other insurance company and even covered my deductible on the spot. For city drivers, rates are great and nothing comes remotely close. |
Metromile Coverage, Availability & Contact Info
Metromile sells standard auto insurance products including liability, collision, comprehensive, medical payments, and uninsured/underinsured motorist coverage. It currently operates in eight states: Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington.
| Contact Method | Customer Service | Claims |
| Phone | (888) 242-5204 | (888) 595-5485 |
| App | Metromile Pulse App (iOS & Android) | Available 24/7 in app |
| Website | www.metromile.com | Online claim portal |
| Cancellation | No fee; return Pulse device within 30 days | — |
Best Metromile Alternatives in 2026
If Metromile isn’t available in your state, or if its recent rate hikes have priced you out, these three alternatives offer similar or superior value for low-mileage drivers.
Lemonade Car Insurance
The direct successor to Metromile’s pay-per-mile product. Prices coverage by mileage and driving habits depending on your state. NerdWallet rating: 4.8/5. Great discounts and a polished app experience.
Nationwide SmartMiles
Combines a base rate with mileage tracking. Broader state availability and a road trip exception cap mileage charges on longer drives. Good pick if Lemonade isn’t in your state.
Root Car Insurance
Not strictly pay-per-mile, but bases premiums primarily on driving behavior and miles driven. Best for safe drivers willing to share telematics data for lower rates. NerdWallet rating: 3.5/5.
| Provider | Model | Best For | NAIC Complaints |
| Metromile / Lemonade | Pay-per-mile | Urban, very low-mileage drivers | Far more than expected |
| Nationwide SmartMiles | Pay-per-mile + base | Broader availability, road trips | Far more than expected |
| Root Insurance | Behavior-based | Safe drivers, flexible mileage | Far more than expected |
| Progressive Snapshot | Telematics discount | Traditional coverage + discount | Average |
| GEICO | Traditional | Broad coverage, wide availability | Average |
Expert Tips: How to Get the Best Car Insurance Rate in 2026
- Know your annual mileage. Pay-per-mile works best under 10,000 miles per year. Use your odometer readings from the past 12 months to get an accurate figure.
- Compare at least 3 quotes. Rates can vary by hundreds of dollars for the same coverage across carriers.
- Bundle your policies. Combining auto with renters or homeowners insurance typically unlocks a 5-15% multi-policy discount.
- Opt in to telematics carefully. Make sure you understand what data is collected and how it affects your rates if you have an off day.
- Review your coverage annually. Metromile customers reported 40% rate increases post-acquisition. Set a calendar reminder to shop around each renewal period.
Frequently Asked Questions About Metromile Auto Insurance
Q: Is Metromile still in business in 2026?
Yes, Metromile continues to operate but was acquired by Lemonade, Inc. in 2022. The pay-per-mile product is now increasingly offered under the Lemonade brand. Metromile.com still accepts new policyholders in its eight covered states.
Q: Who is Metromile best for?
Metromile is best suited for drivers who log fewer than 10,000 miles per year: remote workers, retirees, city dwellers who rely on public transit most of the time, and anyone with a second car they rarely drive.
Q: What states does Metromile operate in?
Metromile currently sells policies in Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington. It is not available in New York or most other states.
Q: How do I file a Metromile claim?
You can file a claim through the Metromile app, on the company website, or by calling (888) 595-5485. The app offers 24/7 claim filing. Note that customer reviews frequently cite slow claims response times as a major concern.
Q: Does Metromile charge more if I drive a lot in a single day?
No. Metromile caps per-mile charges at 250 miles per day (150 miles per day in New Jersey). This means road trips won’t result in unexpectedly large bills.
Q: Can I cancel Metromile without a penalty?
Yes, there are no cancellation fees. However, you must return your Pulse telematics device within 30 business days using the pre-paid envelope provided, or you’ll be charged a $100 device fee.
Q: Is Metromile cheaper than GEICO or Progressive?
For very low-mileage drivers, yes. Metromile’s average annual rate of $782 compares favorably to the $1,924 national average. However, for drivers covering 12,000+ miles per year, traditional carriers like GEICO or Progressive will likely be more competitive.
Q: What is the Metromile Pulse device and is it required?
The Pulse is a small telematics dongle that plugs into your car’s OBD-II port. It is required for all Metromile policies since it measures the miles you drive, which determine your monthly bill. If your car was made before 1996, contact Metromile to confirm compatibility.
Bottom Line: Should You Choose Metromile in 2026?
Metromile remains one of the most innovative auto insurance products in the U.S. for the right driver. If you genuinely drive fewer than 10,000 miles per year, live in one of its eight covered states, and are comfortable with a telematics device in your car, the savings potential is real: an average annual rate of $782 versus the $1,924 national average is hard to argue with.
That said, the post-acquisition experience has been mixed. Significant rate increases, faulty device reports, and a claims department with documented responsiveness problems have eroded customer trust. The Trustpilot rating of 1.8 out of 5 should not be ignored.
Our advice: get a Metromile quote, then immediately compare it against Lemonade, Nationwide SmartMiles, and at least one traditional carrier. Rates change frequently, and a few minutes of comparison shopping could save you hundreds of dollars a year.
Disclosure: Some links in this article may be affiliate links. We may earn a commission if you purchase a policy through these links at no additional cost to you. Our editorial ratings and recommendations are independent of these partnerships. Always compare multiple quotes before choosing a car insurance provider. Information on this page is for educational purposes only and does not constitute professional insurance advice.
