8 Cheap Pay As You Go Car Insurance Companies To Use Today

Are you a low-mileage driver such as myself? If so, why are you paying more for car insurance? This gets me frustrated so I know exactly how you feel. Why are we paying over $400 a month for auto insurance if we barely go anywhere?

8 Cheap Pay As You Go Car Insurance Companies To Use Today

This pay as you go car insurance article will help you to save $300+ a year by recommending companies that specialize in low-mileage driving.

Not only are usage-based systems great for saving month to month on car insurance, but they’re also great for knowing exactly what you’re paying for.

I believe over 50% of insurance customers blindly purchase insurance while not knowing what they could be saving on or why they are paying the amount they are paying. Especially when it’s time to renew and your insurance company jacks up your rates, you should know why.

Pay as you drive programs track everything, so you know exactly what you’re paying for and they even help their customers learn how they can be saving. Compare quotes today to see which company gives you the best insurance deal.



Metromile is a pay-per-mile insurance company that allows you to save a ton of money on your auto insurance. To use Metromile, they will send you a wireless device called the Metromile Pulse. When you receive the Metromile Pulse, plug it into your car’s OBD-II port. This device is going to count the number of miles that you drive to determine your auto insurance bill for the month. Rates vary from customer to customer. There is a flat based rate of $30 a month. On top of this flat based rate you will be charged for the miles driven x pennies per mile. With Metromile you could easily be saving over $500 a year.

Here are the coverages that Metromile offers to their customers:

Bodily injury, property damage, uninsured and under­insured motorist coverage,  collision, comprehensive, personal injury protection/ medical payments coverage, rental reimburse­ment, emergency road­side assistance, $250, $500, and $1000 deductible options.

The only drawback of Metromile is that it may or may not be available in your state.



Milewise is AllState’s pay-per-mile service. Milewise is great for commuters, stay-at-home moms/dads, and retirees. With Milewise you will get charged a low rate per mile and per day. For example, if you have a daily rate of $1.50 and you are paying 6¢ per mile x 12 miles, then you will be paying $2.22/day for auto insurance. You could be paying around $60 – $70 a month for insurance. With Milewise you can save 25% – 40% a week.

Are you a person who likes to see what you’re paying for? If so, you can easily monitor insurance costs and driving behaviors through the Milewise app. With the app you will know exactly what you’re paying for. You will be able to review reports, view your driving details, and review your spending updates.

Don’t worry about long road trips because Milewise caps the number of miles that you drive. Once you reach a certain mile limit a day you won’t have to worry about paying for additional miles.


National General 

National General Insurance is an insurance company that was founded in Winston-Salem in 1920. National General offers a large amount of SmartDiscounts for smart and safe drivers. The National General low-mileage discount is available to OnStar subscribers in 35 states.

This has never been seen before in the U.S. If you drive less than 15,000 miles a year, then you can save far less than the national car insurance average. If you drive less than 500 miles a year you can save 50% on your annual premium. If you drive in the 2500 – 7000 mile range, you can end up saving 30% – 40% on your insurance premium.

Those who drive 7500 to 12,500 a year can save 18% to 26%. To confirm your driven miles National General will use the OnStar Vehicle Diagnostics reports. The reports will not gather information for any other purpose.

What happens when you drive over 15,000 miles? Nothing, you will still be able to save with an active OnStar subscription. More ways that you can save with National General is if you drive a GM vehicle or use GM services.


Direct General

Direct Auto is a very young car insurance company that was founded in 1992. Today Direct Auto has over 400 locations across the south and southeastern part of the United States.

With Direct General if you drive less than average you can easily save 5% or more with their low-mileage discount. I have personally used Direct General in Florida and I saved a lot of money on my premium.  At one point I was only paying $60 a month for my auto insurance policy.

This cheap monthly insurance rate is cheaper than many pay-per-mile companies. What I love about Direct General is that they get cheaper and cheaper.  You can save up to 20% with their renewal discount. You can also save up to 25% by switching over to Direct from another auto insurance company. To be eligible for this discount you would have to have been with the other company for at least 6 months before switching to Direct.


Progressive Snapshot

Progressive offers awesome usage-based insurance with Snapshot. With Snapshot the average driver is rewarded with a $130 discount. Along with this discount you will also receive a discount by just signing up. To use Snapshot, download their mobile app, register, and just drive.

With their app you can view your driving status, most recent trips, view trip details, view trip logs, and more. If you use their easy to plug in device, the device will beep if you break too hard. Less beeps can mean bigger savings.

Although Snapshot is a pay-as-you-drive program, it is also a pay-how-you-drive-program. The safer you drive and the less that you drive with Snapshot the more that you will save. To save money with Snapshot, limit handbrakes, go easy on the pedal, and of course drive less. The only drawback of using Snapshot is that high-risk driving can increase your insurance rates.



Safeco Insurance was founded in 1923 by Hawthorne K. Dent. In 2008, Safeco agreed to be acquired by Liberty Mutual for $68.25 per share.

Do you drive less than 8,000 miles a year? With Safeco you can save up to 20 percent with their low-mileage discount. This is perfect for those who drive less.

To maintain this low-mileage discount, all that you need to do is supply Safeco with your car’s odometer reading and annual mileage estimate. Teens who drive less can save a lot as well with Safeco’s Teen Safety Rewards, which provides a collection of tools, benefits, and discounts.



With AAA you can take advantage of a plethora of services and discounts. We all know that they offer awesome roadside assistance for their customers. However, did you know that they offer reduce mileage discounts?

10,000 miles a year is the national average. If you live close to work or you don’t go out much, then you can take advantage of AAA today. The only con of using AAA is that you will have to be a member first before you can purchase car insurance. However, their initial fee is very cheap as mentioned in AAA vs GEICO.


 Drivewise from Allstate

Safe drivers who drive less with Drivewise can end up saving 30% on their auto insurance. The great thing about Drivewise is that you will be rewarded immediately with 10,000 reward points for signing up.

With Allstate Rewards you can take advantage of daily deals, gift cards, and more. Here are just a few companies that you can save money on. Applebee’s, Samsung, Nike, Toms, Ray-Ban, The North Face, Vitamix, Oakley, and more.

Some companies on this list are available in less than 10 states. One pro of using Drivewise is that it is available in 30 states, which means a stronger chance of it being available in your state. Some States include California, Alaska, Florida, New York, Indiana, Massachusetts, etc.


Compare quotes now. 

There are many awesome companies on this list for those who rarely drive. The first step to choosing the right company is comparing quotes.

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