Exciting Insurtech that can lower your Auto premiums:

I wish this technology was available when I was working and commuting.  As a former public transportation commuter, I would always argue with my insurance company that my exposure was lower than they were charging me.

I commuted via train into NYC everyday.  My car sat in parking lot for 12 hours a day and I would on average drive 2 miles a day round trip to the train station.  My premiums were never adjusted down to my actual usage, most insurance companies didn’t have rating methodologies that would allow <1,000 miles per year.  Most carriers actually assumed 10,000 per year.

Now, there is an exciting Insurtech that can lower your auto premiums based upon the number of miles you drive – Metromile.

I watched a friend in NJ obtain a quote and obtain coverage, I was excited by the process, pricing, coverage, data collection among other items.

Additionally, this is some of the information found from their website.  I encourage readers to explore further.


– 65% of drivers overpay to subsidize high mileage drivers.
– All miles driven over 250 per day (150 in NJ) are free, so even with that longer trip, your readers can still save big.
– Pay-per-mile car insurance saves Metromile customers an average of $500 annually.
– With Metromile you can turn your car into a smart car. Get more than just insurance with a trip tracker, engine light decoder, car locator and more.

States available

Although not currently available in my home state of NY, I am sure that will change soon.  Currently, per-mile insurance is available in California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington.

How it works:

Metromile sends you a device that plugs into your car’s on-board diagnostic (OBD-II) port. It securely transmits data through a cell modem to update your account with trip information. No smartphone or Bluetooth pairing is needed.


Unlike other insurance companies who charge a fixed rate, Metromile rate is broken down into two parts. The first is a low monthly base rate and the second is a per-mile rate. At the end of each monthly cycle, your bill will include the next month’s base rate in addition to the cost of the miles driven over the past month.

The base rate is determined by a daily rate multiplied by the amount of days in each month, so shorter months will cost less. Your bill will almost always be different each month but your rates will not change within the 6-month period unless you request a change.


You will never be penalized or have your rate increase purely because of an increase in annual miles. You are allowed to drive as much as you’d like, but just keep in mind that you will be charged for each mile that you drive up to 150/day (250/day in IL, OR, PA, VA and WA).


Metromile offers four different levels of liability protection as well as choices for your comprehensive and collision deductibles. Please keep in mind that financing and leasing companies may have their own coverage requirements, so please verify before choosing your coverage limits.

Other questions:

The FAQ page is very helpful for answering other questions around claims, data, pricing, billing, etc.


This is a great, new, emerging technology, I expect the growth of Metromile to expand to many more states.  This is great innovation that is definitely something to consider for those readers who don’t use their vehicles often.   I can’t wait to get a quote once they get to NY.  See our article, for more about Usage Based Insurance.

It will take time for readers to build a comfort and trust with new technologies, but paying claims is a way to establish trust…although the customer experience is important at the time of sale, the customer experience at time of claim is probably more important for the reputation/building trust.

There will be many exciting Insurtechs that can lower your Auto premiums, this is one of my favorite so far.

Please ask questions or comment below.

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Arnold Smith

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