Many American drivers are still overpaying for car insurance by hundreds of dollars annually, especially those who drive less than 10,000 miles per year. Mile Auto’s pay-per-mile model promises savings of up to 40%, but is it the right choice for your situation?
Why Traditional Auto Insurance Doesn’t Work for Low-Mileage Drivers
The traditional auto insurance model has a fundamental flaw: it treats a driver who logs 25,000 miles annually the same as someone who drives just 5,000 miles. According to Federal Highway Administration data, the average American driver travels 13,476 miles per year, yet 65% of drivers actually drive less than 10,000 miles annually.
This disconnect means low-mileage drivers, including retirees, remote workers, urban dwellers who rely on public transit, and weekend-only drivers, are essentially subsidizing the costs for high-mileage drivers. Mile Auto was founded specifically to address this inequity through usage-based insurance.
What Is Mile Auto Insurance?
Mile Auto is a specialized pay-per-mile insurance company founded in 2019 that operates in seven states: Arizona, Colorado, Florida, Georgia, Ohio, Oregon, Tennessee, and Texas. The company’s business model is straightforward: customers pay a low monthly base rate (typically around $48) plus a per-mile charge (approximately $0.08 per mile driven).
How Mile Auto’s Pay-Per-Mile System Works
Unlike other usage-based insurance companies that require telematics devices or smartphone apps, Mile Auto uses a privacy-focused approach:
- Monthly Odometer Reading: Customers receive email reminders to submit a photo of their vehicle’s odometer
- MVerity System: Mile Auto’s proprietary system extracts odometer data and verifies authenticity
- Billing Calculation: Your monthly premium equals your base rate plus (miles driven × per-mile rate)
For example, if you have a $48 base rate and drive 300 miles in a month:
- Base rate: $48
- Mileage charge: 300 miles × $0.08 = $24
- Total monthly premium: $72
Mile Auto Insurance Rates: How Much Does It Cost?
Based on 2025 data, Mile Auto customers pay an average of:
- Liability-only coverage: $64 per month
- Full coverage: $102 per month
These rates vary significantly by state and driver profile:
Mile Auto Rates by State (Liability Coverage)
| State | Mile Auto Average | State Average | Potential Savings |
| Ohio | $39/month | $71/month | $32/month |
| Tennessee | $42/month | $69/month | $27/month |
| Arizona | $61/month | $94/month | $33/month |
| Oregon | $68/month | $92/month | $24/month |
| Texas | $70/month | $124/month | $54/month |
| Georgia | $89/month | $163/month | $74/month |
| Florida | $113/month | $155/month | $42/month |
Mile Auto Rates by Driver Profile
Mile Auto’s rates also vary based on your driving history and demographics:
| Driver Type | Mile Auto Quote | National Average | Savings |
| Clean record | $64/month | $103/month | $39/month |
| Speeding ticket | $72/month | $128/month | $56/month |
| At-fault accident | $84/month | $134/month | $50/month |
| DUI | $97/month | $156/month | $59/month |
| Teen drivers | $145/month | $198/month | $53/month |
| Senior drivers | $46/month | $88/month | $42/month |
Mile Auto Coverage Options
Mile Auto offers standard auto insurance coverage options required in each state where it operates:
Core Coverage Types
- Liability Insurance: Covers bodily injury and property damage if you cause an accident
- Comprehensive Coverage: Protects against theft, vandalism, weather damage, and other non-collision incidents
- Collision Coverage: Pays for vehicle damage from accidents
- Personal Injury Protection (PIP): Available in states where required (like Florida)
Optional Add-Ons
- Roadside Assistance: Emergency services for breakdowns
- Rental Car Reimbursement: Covers rental costs while your car is being repaired
Limitation: Mile Auto doesn’t offer some coverage options available through competitors, such as uninsured/underinsured motorist coverage or medical payments coverage explicitly listed on their website.
READ ALSO: How to Find the Cheapest Car Insurance in Mississippi
Mile Auto Customer Reviews and Ratings
Mile Auto’s customer satisfaction presents a mixed picture:
Customer Ratings
- Trustpilot: 3.0/5 stars (205 reviews)
- Better Business Bureau: “A” rating (not accredited)
- Insurify User Reviews: 4.1/5 stars (49 reviews)
Common Customer Complaints
- Customer Service Accessibility: Multiple reviews mention difficulty reaching representatives
- Claims Processing Delays: Some customers report slow claim resolution
- Billing Surprises: Price increases beyond initial quotes
- Limited Communication Options: Customer service only available Monday-Friday, 9 AM-6 PM
Positive Feedback
- Significant savings for low-mileage drivers
- Simple, transparent pricing model
- No invasive tracking devices
- Good rates for high-risk drivers
Mile Auto vs Competitors: How It Stacks Up
Mile Auto vs Root Insurance
- Mile Auto: Manual odometer readings, broader state availability
- Root: App-based tracking, offers more discounts
- Rate Comparison: Similar pricing for low-mileage drivers
Mile Auto vs Traditional Insurers
- Pros: Better rates for drivers under 10,000 miles/year
- Cons: No bundling discounts, fewer coverage options, limited customer service
Mile Auto vs Metromile (Now Lemonade)
- Mile Auto: No telematics device required
- Metromile: More comprehensive tracking and insights
Who Should Consider Mile Auto Insurance?
Ideal Candidates
- Remote Workers: Drive primarily for errands and occasional trips
- Retirees: Limited daily driving needs
- Urban Dwellers: Rely on public transportation for commuting
- College Students: Minimal driving due to campus life
- Weekend Drivers: Use vehicles primarily for recreation
- Multi-Car Households: One vehicle used infrequently
When Mile Auto May Not Be Right
- High-Mileage Drivers: Over 10,000 miles annually
- Commercial Use: Business travel or delivery drivers
- Discount Seekers: Those who benefit from bundling or multiple discounts
- Full-Service Needs: Require extensive coverage options
5 Tips to Maximize Savings with Mile Auto
- Track Your Mileage First: Monitor your driving for 2-3 months before switching
- Combine with Other Strategies: Use public transit, carpooling, or remote work to reduce miles
- Choose Higher Deductibles: Lower your premium if you’re a safe, low-mileage driver
- Submit Accurate Readings: Late or incorrect odometer submissions can affect your rate
- Review Annually: Ensure Mile Auto remains competitive as your driving habits change
Common Mile Auto Insurance Mistakes to Avoid
1. Not Calculating Your Annual Mileage
Many drivers overestimate or underestimate their annual mileage. Use these methods:
- Check previous years’ odometer readings
- Track mileage for 3 months and multiply by 4
- Use smartphone apps to monitor driving patterns
2. Ignoring Total Cost of Ownership
Consider factors beyond just monthly premiums:
- Claims processing efficiency
- Customer service availability
- Coverage limitations
3. Forgetting to Submit Odometer Readings
Late submissions can result in estimated mileage charges, potentially increasing your bill.
4. Not Shopping Around
Mile Auto specializes in pay-per-mile insurance, but traditional insurers may offer competitive rates with better service and more comprehensive coverage.
Mile Auto Financial Stability and Reliability
While Mile Auto itself isn’t rated by AM Best (due to its recent founding), its coverage is underwritten by an AM Best “Excellent” rated insurance company. The policies are also backed by one of the world’s largest reinsurers, providing additional financial security.
Key Financial Indicators:
- Underwriter Rating: “A” (Excellent) by AM Best
- Reinsurance: Global reinsurer backing
- Years in Operation: Since 2019
- State Regulatory Approval: Licensed in all operating states
How to Get Mile Auto Insurance Quotes
Step-by-Step Process
- Visit Mile Auto’s Website: Enter your ZIP code to verify availability
- Provide Basic Information: Vehicle details, driving history, coverage preferences
- Estimate Annual Mileage: Be as accurate as possible
- Review Quote: Compare base rate and per-mile charges
- Purchase Policy: Complete application and payment setup
Information You’ll Need
- Driver’s license and vehicle registration
- Current insurance information
- Estimated annual mileage
- Preferred coverage levels and deductibles
Alternative Pay-Per-Mile Insurance Options
If Mile Auto isn’t available in your state or doesn’t meet your needs, consider these alternatives:
National Options
- Root Insurance: App-based tracking, available in most states
- Lemonade Pay-Per-Mile: Formerly Metromile, uses telematics devices
- Nationwide SmartRide: Hybrid usage-based program
Traditional Insurers with Usage-Based Programs
- Progressive Snapshot: Discount based on driving habits
- State Farm Drive Safe & Save: Usage-based discounts
- Allstate Drivewise: Rewards safe driving behaviors
The Future of Pay-Per-Mile Insurance
The pay-per-mile insurance market is expected to grow significantly as:
- More Americans work remotely
- Urban areas expand public transportation
- Environmental consciousness drives reduced driving
- Technology makes usage tracking more accurate and privacy-friendly
Mile Auto’s approach of manual reporting rather than invasive tracking may appeal to privacy-conscious consumers, potentially giving it an advantage as the market evolves.
Conclusion: Is Mile Auto Insurance Worth It?
Mile Auto insurance can provide substantial savings for the right drivers—those who drive less than 10,000 miles annually and live in one of the seven states where it’s available. The company’s privacy-focused approach and transparent pricing model appeal to many customers, despite some service limitations.
However, Mile Auto isn’t a one-size-fits-all solution. Before making the switch, carefully calculate your annual mileage, compare quotes from multiple insurers, and consider your need for comprehensive customer service and coverage options.
The bottom line: If you’re a low-mileage driver in an eligible state and value privacy over extensive customer service options, Mile Auto could save you hundreds of dollars annually. For others, traditional insurers with usage-based programs might offer better overall value.
Insurance rates change frequently, and the best deal today might not be the best deal tomorrow. Get quotes from multiple providers to ensure you’re getting the coverage you need at the price you deserve.
Frequently Asked Questions About Mile Auto Insurance
Is Mile Auto a legitimate insurance company?
Yes, Mile Auto is a legitimate insurance company licensed to operate in seven states. While the company itself isn’t rated by AM Best due to its recent founding, its policies are underwritten by an AM Best “Excellent” rated insurance company and backed by a major global reinsurer.
How much can I save with Mile Auto insurance?
Savings depend on your driving habits and current rates. Mile Auto customers typically save 30-40% compared to traditional insurance, with some low-mileage drivers saving even more. For example, drivers in Georgia could save up to $74 per month compared to the state average.
What happens if I drive more than expected with Mile Auto?
If you drive more miles than anticipated, your monthly bill will increase proportionally. For example, driving an extra 100 miles would add $8 to your monthly premium (100 miles × $0.08 per mile). There are no penalties, but consistently high mileage may make traditional insurance more cost-effective.
Does Mile Auto use tracking devices in my car?
No, Mile Auto doesn’t require tracking devices or smartphone apps. Instead, you submit monthly photos of your odometer reading through their MVerity system. This approach prioritizes privacy while still enabling pay-per-mile pricing.
What states offer Mile Auto insurance?
Mile Auto is currently available in seven states: Arizona, Colorado, Florida, Georgia, Ohio, Oregon, Tennessee, and Texas. The company is expanding to additional states, and you can sign up for notifications about availability in your area.
How do I file a claim with Mile Auto?
Claims can be filed 24/7 by calling Mile Auto’s claims hotline. However, some customers report delays in claims processing and difficulty reaching customer service representatives during business hours (Monday-Friday, 9 AM-6 PM).
Can I get discounts with Mile Auto insurance?
Mile Auto doesn’t offer traditional discounts like multi-policy bundles or good driver discounts. The company’s pay-per-mile model is designed to provide inherent savings for low-mileage drivers instead of layering discounts on top of higher base rates.
What if I forget to submit my odometer reading?
Mile Auto sends multiple reminders via text and email. If you miss the deadline, they may estimate your mileage based on previous months’ data, which could result in higher charges. Consistent, timely submissions help ensure accurate billing.
Is Mile Auto good for high-risk drivers?
Mile Auto can be beneficial for high-risk drivers who drive infrequently. The company’s rates for drivers with violations, accidents, or DUIs are often lower than traditional insurers, especially when combined with low annual mileage.
How does Mile Auto compare to other pay-per-mile insurers?
Mile Auto’s main advantages are its privacy-focused approach (no tracking devices) and competitive per-mile rates. However, competitors like Root may offer more comprehensive customer service and additional coverage options. The best choice depends on your priorities regarding privacy, service, and available features.
In another related article, The Cheapest Car Insurance Companies of 2025
