Auto Insurer Creates Pay-by-Mile Program

Auto Insurer Creates Pay-by-Mile Program

City drivers can potentially save money by turning to a pay-by-mile auto insurance policy.

San Francisco-based MetroMile allows motorists in California, Washington, Illinois and Oregon to pay by the mile for their auto insurance, stating that the typical person who drives less than 10,000 miles a year can save up to $400 annually. Customers simply plug the company’s free connected-car device, called the Metronome, into the diagnostic port of their vehicle so that the Metronome can capture mileage data and transmit it wirelessly.

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In addition, MetroMile offers an iOS app for Apple devices that gives drivers “predictive insights to help them save time and gas on their daily drives, easily diagnose check engine lights, and find their car wherever it is parked,” MetroMile said in a statement.

According to the company’s website, mileage charges are capped at 150 miles per day as an Illinois or Oregon driver and 250 miles per day as a Washington driver. The company also received an excellent rating from the agency A.M. Best Company, a nationally recognized statistical rating organization.