8 Best Pay-As-You-Go Auto Insurance Companies in 2026 (Top Providers Ranked)
Nationwide, Geico, and Liberty Mutual are the best pay-as-you-go auto insurance companies, offering wide availability and usage-based discounts of up to 40%. Monthly rates are as low as $34 in some states with pay-as-you-go car insurance if you put 8,000 miles or fewer on your car each year.
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Insurance and Finance Writer
Laura Gunn is a former teacher who uses her passion for writing and learning to help others make the best decisions regarding finance and insurance. After stepping away from the classroom, Laura used her skills to write across many different industries including insurance, finance, real estate, home improvement, and healthcare. Her experience in various industries has helped develop both her ...
Laura Gunn
Head of Content
Meggan McCain, Head of Content, has been a professional writer and editor for over a decade. She leads the in-house content team at Quote.com. With three years dedicated to the insurance industry, Meggan combines her editorial expertise and passion for writing to help readers better understand complex insurance topics. As a content team manager, Meggan sets the tone for excellence by guiding c...
Meggan McCain
Licensed Agent & Financial Advisor
Schimri Yoyo is a financial advisor with active insurance licenses in seven states and over 20 years of professional experience. During his career, he has held roles at Foresters Financial, Strayer University, Minnesota Life, Securian Financial Services, Delaware Valley Advisors, Bridgemark Wealth Management, and Fidelity. Schimri is an educator eager to assist individuals and families in ach...
Schimri Yoyo
Updated October 2026
The best pay-as-you-go auto insurance companies are Nationwide, Geico, and Liberty Mutual. Nationwide offers two plan types for low-mileage or safe drivers.
- Car insurance on-the-go works best if you have a short commute
- Progressive drivers can save $328 a year with pay-per-use plans
- Pay-as-you-go car insurance costs $41 a month at Mile Auto
Liberty Mutual and Geico score high in J.D. Power’s customer satisfaction survey for usage-based policies, and Geico earns a superior A++ financial rating from AM Best.
If you don’t drive often, these top pay-as-you-go car insurance companies offer usage-based tracking and low-mileage discounts that can save you money.
Top 8 Companies: Best Pay-As-You-Go Auto Insurance
| Company | Rank | Claims Satisfaction | A.M. Best | Best For |
|---|---|---|---|---|
| Nationwide | #1 | 711 / 1,000 | A+ | Low Mileage |
| Geico | #2 | 686 / 1,000 | A++ | Mobile Tools |
| Liberty Mutual | #3 | 684 / 1,000 | A | Claims Service |
| Allstate | #4 | 652 / 1,000 | A+ | High Mileage |
| State Farm | #5 | 645 / 1,000 | A+ | Local Agents |
| Farmers | #6 | 645 / 1,000 | A | Discounts |
| Progressive | #7 | 635 / 1,000 | A+ | Safe Drivers |
| American Family | #8 | 618 / 1,000 | A | Teen Drivers |
Most insurers require drivers to install a tracking device to qualify for low-mileage rates, but there is less intrusive pay-as-you-go insurance from Hugo and Mile Auto.
Once you have an idea of the best pay-as-you-go car insurance for you, get personalized quotes with our free online comparison tool.
Comparing Pay-As-You-Go Insurance Companies
Pay-as-you-go insurance (PAYG), also known as pay-per-mile insurance or usage-based auto insurance (UBI), is a flexible and cost-effective option that allows policyholders to pay premiums based on how they drive.
Insurers set rates based on driving habits, like speeding and hard braking, and the actual miles driven, making it ideal for occasional drivers or those with low annual mileage.
Most insurance companies use telematics devices that automatically track your driving and mileage. The most popular option is through a mobile app on your phone, but you can also find plug-in devices for your car.
UBI companies still charge a monthly or annual rate based on demographics like age and gender. Compare pay-as-you-drive insurance options near you to see which type of plan and price match your lifestyle and budget.
Average Costs for Pay-Per-Use Car Insurance Policies
Is pay-as-you-go car insurance cheaper? It can be the cheapest insurance for infrequent drivers, but your overall savings depend on the base rate, per-mile charge, and how much you drive.
Geico and Nationwide have cheap full auto insurance for drivers who choose PAYG, but rates can vary by age and driving history. Younger drivers or those with accidents might see higher quotes.
Pay-As-You-Go Auto Insurance Monthly Rates by Coverage Level
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| Allstate | $55 | $150 |
| American Family | $57 | $157 |
| Farmers | $60 | $169 |
| Geico | $49 | $143 |
| Liberty Mutual | $64 | $170 |
| Nationwide | $51 | $141 |
| Progressive | $55 | $154 |
| State Farm | $45 | $129 |
For those seeking pay-as-you-go full coverage car insurance, it’s essential to compare rates and coverage options from multiple providers. Start here with our free comparison tool.
Liberty Mutual and Allstate offer more policy options for on-the-go car insurance, but they have a higher price point than other providers on this list. Compare Now: Allstate vs. Liberty Mutual Auto Insurance Review
How Accidents, Tickets, & DUIs Affect Pay-As-You-Go Prices
Another important factor to consider is your driving record. Drivers with at-fault accidents, speeding tickets, and DUIs will pay higher rates for insurance than drivers with a clean record.
Nationwide offers competitive rates for drivers with DUIs, while State Farm, Geico, and Progressive are some of the best high-risk auto insurance companies for low rates after an accident.
Pay-As-You-Go Auto Insurance Monthly Rates by Driving Record
| Company | Clean Record | One Ticket | One Accident | One DUI |
|---|---|---|---|---|
| Allstate | $55 | $67 | $94 | $154 |
| American Family | $57 | $68 | $93 | $149 |
| Farmers | $60 | $73 | $103 | $170 |
| Geico | $49 | $60 | $82 | $131 |
| Liberty Mutual | $64 | $78 | $110 | $182 |
| Nationwide | $51 | $61 | $84 | $134 |
| Progressive | $55 | $66 | $89 | $146 |
| State Farm | $45 | $54 | $72 | $114 |
Some providers restrict their pay-as-you-go programs based on driving history, so compare multiple companies if you have infractions on your record.
To get the cheapest car insurance with pay-as-you-go payment options, you can enter your ZIP code into our free comparison tool.
Credit Score Impact on Pay-As-You-Go Plans
If you have poor credit and need affordable car insurance, pay-as-you-drive plans can help lower your rates. Our article explains more: How Credit Scores Affect Auto Insurance Rates
Not every state allows insurers to use credit scores to set insurance pricing, and your pay-as-you-go auto insurance quotes will look different based on your location, age, driving habits, and mileage. Shop around online if your credit score changes to find the best prices.
Pay-As-You-Go Auto Insurance Monthly Rates by Credit Score
| Company | Excellent (800+) | Good (670-799) | Fair (580-669) | Poor (<580) |
|---|---|---|---|---|
| Allstate | $55 | $67 | $87 | $119 |
| American Family | $57 | $68 | $88 | $120 |
| Farmers | $60 | $73 | $95 | $131 |
| Geico | $49 | $59 | $77 | $106 |
| Liberty Mutual | $64 | $78 | $102 | $141 |
| Nationwide | $51 | $61 | $79 | $108 |
| Progressive | $55 | $66 | $86 | $118 |
| State Farm | $45 | $54 | $70 | $96 |
State Farm is the only company with PAYG minimum coverage under $100 a month for drivers with poor credit, while Geico and Nationwide stay competitive at $106 and $108 monthly.
Nationwide pay-as-you-go is cheap across all credit tiers, and it offers two PAYG plans, giving drivers more opportunities to save than companies like State Farm and Geico, which only offer one program.
Shop Now: Best Pay-As-You-Go Auto Insurance in Alabama
Pay-As-You-Go Premiums for Different Drivers
Although mileage and driving habits are the most important factors in pay-as-you-go premiums, your base rate is still affected by your age and driving experience.
Younger drivers will typically pay more. A common concern is, “Which insurers are most recommended for new drivers who need flexible payment plans?” Pay-as-you-go car insurance for new drivers from AmFam or Nationwide can be the affordable option that teens (and their parents) are searching for.
Pay-as-you-go car insurance for young drivers bases premiums on mileage and driving habits, which can be beneficial for those without a driving history or who drive less frequently or only short distances.
Insurance on the go also works for retirees who no longer commute. For seniors looking for cheaper insurance, pay-as-you-go coverage is a flexible, cost-effective option.
Learn More: Cheap Auto Insurance for Drivers Over 80
How Pay-As-You-Go Insurance Varies Across the U.S.
State insurance laws and regulations determine what type of pay-as-you-go insurance is available and what exactly insurers can track. Other important factors include what type of vehicle you drive and where you live.
Pay-as-you-go car insurance in Michigan, Louisiana, and Florida has saved drivers money by letting policyholders in these high-risk states pay premiums based on their actual mileage and habits.
Drivers seeking affordable PAYG car insurance in PA and SC have reported that mileage-based, prepaid auto insurance is the most affordable option in their area.
If you’re searching for “auto insurance near me,” compare pay-per-mile and usage-based insurance companies available in your state with our quote tool. Not every program is available everywhere, and discounts can vary depending on where you live.
For instance, pay-as-you-go car insurance in Texas looks different from pay-per-mile car insurance in California because CA insurers aren’t allowed to track as many habits.
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Pay-As-You-Go Pricing From Different Insurers
If savings and quick coverage are a priority, you’ll want to know, “Which insurers are best for drivers who want pay-as-you-go or short-term auto insurance?” Car insurance like Hugo, Metromile, MileAuto, and Root offers PAYG policies that can better suit your lifestyle.
Some of these providers aren’t verified by AM Best or the Better Business Bureau, and don’t operate in many states, but they are the closest drivers can get to cheap daily car insurance.
Pay-As-You-Go Auto Insurance Monthly Rates by Provider
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| Allstate | $55 | $150 |
| American Family | $57 | $157 |
| Farmers | $60 | $169 |
| Geico | $49 | $143 |
| Hugo | $48 | $138 |
| Liberty Mutual | $64 | $170 |
| Metromile | $52 | $137 |
| Mile Auto | $41 | $121 |
| Nationwide | $51 | $141 |
| Progressive | $55 | $154 |
| Root | $54 | $152 |
| State Farm | $45 | $129 |
MileAuto is the most affordable at $41 monthly, and it doesn’t use plug-in devices to track your driving habits or location. Instead, it uses pictures of your odometer to set rates based on mileage. Find More Options: Best Auto Insurance Companies That Don’t Sell Your Information
Metromile tracks driving habits as well as mileage, so its rates are slightly higher at $52 per month for minimum coverage and $137 monthly for full coverage.
Policies from Root track both driving habits and mileage, and safe drivers save $109 per month on average.
Hugo Insurance full coverage rates are higher than Metromile’s, but it’s the only provider to offer pay-as-you-go car insurance with no deposit.
Hugo Car Insurance Pay-As-You-Go Options
If you want pay-by-day car insurance, daily pay schedules can be hard to find. Hugo is one provider that offers a kind of daily pay auto insurance.
Policyholders upload money to a digital account on the Hugo Insurance app and pay for coverage as they use it. Many people refer to this type of coverage as “prepaid car insurance” because users only pay for how far they drive.
Most companies typically don’t have apps like Hugo and require a bank account to set up online payments. Read our guide to learn how its buy-now-pay-later car insurance model works: Hugo Auto Insurance Reviews
Some insurance companies like Hugo offer short-term coverage, but finding car insurance without a deposit is difficult since most providers require at least a month's premiums upfront.
Michelle Robbins Licensed Auto Insurance Agent
Overall, reviews on Hugo Insurance are mixed. Pay-by-the-day auto insurance isn’t for everyone. If you drive more than 150 miles a week with Hugo Insurance, its daily pay car insurance rates can quickly skyrocket.
State laws also impact Hugo pay-as-you-go car insurance availability, so read local reviews. For example, Hugo Insurance Florida reviews (and other pay-per-mile coverage options) explain what’s available in that state and how local drivers can sign up.
Get More Details: Auto Insurance Rates by State
Recent Changes to Metromile Pay-Per-Mile Insurance
Lemonade acquired Metromile in 2022. It was once a mileage-based company that charged drivers only for miles driven. Our review details its usage-based model and how it tracks driving behaviors to reward safer habits: Lemonade Insurance Review
Since Metromile became Lemonade, some policyholders have complaints about Lemonade’s reliance on AI for car insurance. While claims can be handled quickly, customers who want to talk to an agent won’t have access.
Lemonade Destroyed Metromile — Worst Insurance Experience I’ve Ever Had
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Another complaint is that Metromile can raise rates for risky driving habits. If you’re comparing Metromile vs. Progressive Snapshot UBI, both companies will charge higher rates for speeding, hard braking, or frequent night driving.
Find local rates to see how prices compare to pay-as-you-go car insurance companies near you.
Root Insurance Pay-As-You-Go Breakdown
If you’re a good driver who wants to save money fast, Root provides same-day coverage. New customers can sign up online and activate their policy within five minutes of purchase.
Root car insurance is worth considering for safe drivers comfortable sharing their driving data. It uses a smartphone app to track braking, turning, and driving times, rewarding good drivers with personalized rates.
Root stands out because it only insures good drivers, using the first 30 days of your policy to track habits and set your monthly rates. You won’t be eligible to buy Root auto insurance if your driving score isn’t high enough.
It advertises that good drivers can save up to $1300 a year on car insurance, but its average rates are higher than the top providers on this list. You can check quotes in this article: Root Auto Insurance Review
Easy Ways to Lower Pay-As-You-Go Rates
Drivers with pay-per-mile or usage-based plans can qualify for additional discounts when bundling coverage or insuring multiple vehicles.
Nationwide has the biggest pay-as-you-go discount of 40% for drivers who sign up for Nationwide SmartRide UBI. Liberty Mutual and Geico offer drivers the biggest multi-car discount of 25%.
Auto Insurance Discounts for Pay-As-You-Go Drivers
| Company | Anti-Theft | Bundling | Multi-Car | Usage Based |
|---|---|---|---|---|
| Allstate | 10% | 25% | 10% | 30% |
| American Family | 25% | 25% | 23% | 15% |
| Farmers | Varies | 20% | 15% | 30% |
| Geico | 25% | 25% | 25% | 25% |
| Liberty Mutual | 35% | 25% | 25% | 30% |
| Nationwide | 5% | 20% | 15% | 40% |
| Progressive | Varies | 7% | 12% | $328/yr |
| State Farm | 15% | 17% | 20% | 20% |
Many other popular pay-as-you-go companies that offer cheap car insurance, like Root and Mile Auto, won’t offer additional discounts since rates are already discounted through telematics or mileage tracking.
Even if you don’t qualify for discounts, there are many other ways to reduce pay-as-you-go premiums:
- Bundle Policies: Many insurers offer discounts for combining pay-as-you-go auto insurance with homeowners, renters, condo, or other policies.
- Choose Higher Deductibles: Raising your collision and comprehensive deductibles can significantly lower full coverage pay-as-you-go premiums.
- Pay Premiums Online: Sign up for online payments and shop around to find which low-cost providers are best for drivers who want paperless billing and discounts.
- Review Coverage Regularly: If your car’s value has declined, dropping optional coverages such as collision or comprehensive coverage may reduce costs.
- Shop and Compare: Rates can vary widely between insurers, so compare quotes at least once a year to ensure you’re still getting the best pay-as-you-go insurance.
Comparing multiple auto insurance quotes helps you find affordable pay-as-you-go insurance. Car owners who don’t drive often get the best rates, but compare providers based on your unique profile.
For example, Allstate is recommended for drivers with higher mileage but a clean record, while Progressive Snapshot can help higher-risk drivers get pay-as-you-go savings.
What Pay-As-You-Go Car Insurance Covers
The main difference between pay-as-you-go and traditional policies is how premiums are calculated, not the insurance coverage. PAYG companies offer the minimum liability protection required by state law, and drivers can also add collision and comprehensive for full coverage.
Local pay-as-you-go auto insurance companies will offer uninsured/underinsured motorist (UM/UIM) and personal injury protection (PIP) or MedPay if your state requires it, although you won’t always find rideshare insurance or gap coverage for PAYG policies.
Pay-As-You-Go Auto Insurance Coverage Options by Provider
| Company | Claim Forgiveness | Gap Plans | Reduced Deductible | Rideshare Coverage |
|---|---|---|---|---|
| Allstate | ✅ | ✅ | ✅ | ✅ |
| American Family | ✅ | ✅ | ✅ | ✅ |
| Farmers | ✅ | ✅ | ✅ | ✅ |
| Geico | ❌ | ❌ | ❌ | ✅ |
| Liberty Mutual | ✅ | ✅ | ✅ | ✅ |
| Nationwide | ❌ | ✅ | ✅ | ❌ |
| Progressive | ✅ | ✅ | ✅ | ✅ |
| State Farm | ✅ | ❌ | ❌ | ✅ |
Most pay-as-you-go policies also don’t have many customization options, which won’t work for drivers who want more than the basic types of auto insurance.
Liberty Mutual and Farmers offer the most popular add-ons, but affordable carriers like Geico and State Farm are missing key options.
It pays to shop around because coverage options can vary by state and provider. Use our quote finder to compare policies and prices side by side.
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How to Use Pay-As-You-Go Auto Insurance
How does pay-as-you-go auto insurance work? It may seem complicated, but the way your rates are calculated is easy to understand.
Traditional factors that affect auto insurance rates, like age, location, vehicle type, and coverage, still affect pay-as-you-go premiums, but mileage and driving habits have a bigger impact on what you pay.
Depending on your policy type, pay-as-you-go or pay-by-the-day car insurance rates can change month by month or at each renewal based on how you drive.
Pay-per-mile insurance charges a flat monthly fee plus a per-mile rate, usually just a few cents per mile. Usage-based insurance tracks speed, hard braking, phone use, mileage, and time of day through a mobile app or plug-in device to calculate potential discounts.
- Compare PAYG Companies: Look for insurers offering pay-per-mile, usage-based, or prepaid coverage in your state.
- Choose Your Coverage: Select liability limits and optional comprehensive or collision coverage based on your needs.
- Get a Quote: Enter your driver and vehicle information, estimated mileage, and preferred coverage into insurance comparison websites for rates.
- Activate Your Policy: Make your first payment and download the insurer’s app or install a tracking device if required.
- Track Your Driving and Payments: Monitor your mileage, driving habits, and billing through your account to avoid unexpected charges or coverage interruptions.
Follow these steps to sign up for pay-as-you-go auto insurance if you work from home or have a short commute.
It also works for safe drivers without claims who want to be rewarded for their good driving habits, especially if they live in high-risk areas for traffic and auto theft. See More: Best Pay-As-You-Go Auto Insurance in Louisiana
Experts recommend avoiding temporary pay-by-the-day auto insurance because interrupted coverage can negatively affect your premiums.
Justin Wright Licensed Insurance Agent
If you’re looking for a type of daily pay insurance, sign up for prepaid full coverage pay-as-you-go car insurance like Hugo and only pay for the days you drive.
For drivers asking which low-cost insurers offer the best rates for drivers who pay monthly without fees, pay-as-you-go plans from Hugo and Mile Auto can be used as a form of temporary car insurance since rates are calculated per trip and you typically pay month-to-month.
Usage-Based Insurance vs. Pay-Per-Mile Insurance
Usage-based and pay-per-mile coverage are similar in many ways. Both provide liability and full coverage policies, and both track driving to determine rates.
The biggest difference between the two is the pay-as-you-go feature. Usage-based plans work more like standard insurance, adding a discount to your premium based on driving habits rather than setting rates based on mileage.
UBI relies on safe driving habits to generate a discount. It tracks your driving, including where and when you drive.
Confirm how the insurer tracks pay-as-you-go habits and how much personal information you want to share. These are the three common ways providers track driving:
- Mobile App: The most popular method uses your smartphone’s GPS to determine location and distance, and the insurer’s app tracks driving habits.
- Odometer: Some pay-per-mile PAYG companies ask you to send a photo of your odometer each month to track mileage and set premiums.
- Plug-In Device: Insurers provide a device that plugs into your car’s OBD-II port to track vehicle data like braking, speed, turning, and distance traveled.
If you prefer more anonymous car insurance, mileage-based pay-as-you-go plans may not be the best option for you. Look for other providers in our guide: Best Auto Insurance Companies for Telecommuters
MileAuto is one of the few PAYG companies that don’t use a tracking device for drivers concerned about data breaches.
There are pros and cons to pay-as-you-go insurance. It’s an affordable alternative to avoiding a coverage lapse, which can lead to higher rates when you try to restart a policy, but rates can get expensive if you drive more often.
See what insurers may charge for different locations and monthly mileage to find the PAYG policy that fits you.
Who Should Use Pay-As-You-Go Policies
Low-mileage drivers can find the cheapest auto insurance companies with a pay-per-mile insurance policy and get more flexibility if they drive less than 8,000 miles per year (under 600 miles per month).
For example, if your base cost is $25 monthly, your per-mile charge is $0.08, and you travel 300 miles, you would spend $49 that month for minimum coverage. But if you double your mileage the next month, your premium jumps to $73.
The national average for minimum car insurance is around $60 per month, so watch your monthly mileage to see if you can save money. Higher-mileage drivers benefit more from usage-based PAYG plans that track driving habits along with mileage.
Unlike pay-per-mile, UBI generates a discount that applies at every renewal. Nationwide SmartRide has the biggest savings potential of 40%, while the average Progressive Snapshot driver saves $328 per year.
Be aware that some PAYG companies penalize drivers for speeding, driving at night, or exceeding a set mileage limit. So if you have a long commute or work off-hours, it might not be the best fit.
If you’re unsure whether UBI or low-mileage car insurance is right for you, ask your provider about a trial period. Top companies like Progressive let customers try the service to test their driving habits and see potential discounts before they switch.
Find Out More: Best Pay-As-You-Go Auto Insurance in Tennessee
Top Pay-As-You-Go Insurance Companies
When comparing telematics programs, the top question is, “What are the best car insurance companies for drivers who want usage-based or per-mile pricing?
State Farm, Progressive, and Geico are the most popular companies, mostly because rates are cheap and coverage is available in most states.
The most popular company isn't always the best for your driving habits. Someone who works from home and rarely drives could save more with pay-per-mile, while daily commuters might get better rates with UBI that rewards safe driving.
Maria Hanson Insurance and Finance Writer
Allstate is also a popular option, as it is one of the few companies that offer both types of PAYG insurance.
Allstate Milewise is the pay-per-mile auto insurance option, while Drivewise reviews show how it tracks driving habits for a discount.
American Family also offers both types of plans, but isn’t available in as many states as some of these larger providers.
Compare before you buy to pick the right policy for your lifestyle. Start Shopping: Geico vs. State Farm Auto Insurance
#1 – Nationwide: Top Pick Overall
Pros
- Low Mileage Policies: Nationwide SmartMiles reviews recommend it if you drive 8,000 miles a year or less, and good drivers save 10% with a clean record.
- Usage-Based Savings: Higher-mileage drivers can sign up for Nationwide SmartRide and save up to 40% for good driving. Learn How: SmartRide Review
- Wide Availability: Both Nationwide pay-as-you-go plans are available in 44 states, more than any other pay-as-you-go insurance company.
Cons
- Higher Starting Rates: Nationwide costs more than other pay-as-you-go providers until discounts kick in.
- Slow UBI Discounts: Drivers using Nationwide SmartRide won’t see discounts for up to six months.
#2 – Geico: Best for Mobile Tools
Pros
- Competitive Discounts: Drivers can save up to 25% with Geico DriveEasy if they drive safely. Find More Discounts: Geico DriveEasy Review
- Financial Strength: Geico’s superior financial rating from AM Best reassures drivers that claims can be paid.
- Online Management: According to Geico insurance reviews, its mobile app makes it easy to manage DriveEasy pay-as-you-go policies and file claims.
Cons
- Average Claims Experience: Geico ranks below average for claims service due to slow processing times.
- Higher Premiums: Although it’s usually one of the cheapest providers, Geico pay-as-you-go car insurance is more expensive than State Farm.
#3 – Liberty Mutual: Best for Claims Handling
Pros
- Big Usage-Based Savings: On top of 30% UBI discounts, drivers automatically get 15% off when signing up for Liberty Mutual RightTrack.
- Educator Discounts: RightTrack reviews show that teachers who sign up get additional discounts and coverage for school supplies.
- High Claims Satisfaction: Liberty Mutual is in the top three companies for claims service, with higher J.D. Power scores than other insurers on this list.
Cons:
- Expensive Premiums: Liberty Mutual is one of the more expensive pay-as-you-go insurance companies at $64 a month for minimum coverage.
- UBI Rate Increases: Drivers could see their premiums increase if RightTrack tracks bad driving. Compare rates in our guide: Liberty Mutual Review
#4 – Allstate: Best for High-Mileage Drivers
Pros
- Two Types of Plans: Drivers can choose from Allstate Drivewise UBI or Allstate Milewise pay-per-mile plans.
- Affordable Mileage Cap: With Allstate Milewise, the maximum miles you’ll be charged for in a single day are 250. Read More: Allstate Insurance Review
- Unique Perks: Drivers can earn Allstate Rewards points for their good driving habits. Simply sign up for the program to get started.
Cons
- Limited Availability: Allstate PAYG faces restrictions in some areas, and Milewise by Allstate reviews show it’s only available in 21 states.
- Rate Increases: Bad driving habits can increase your Allstate rates, even if you’re on a low-mileage policy.
#5 – State Farm: Best for Local Agents
Pros
- Affordable Coverage: State Farm is one of the cheapest pay-as-you-go auto insurance companies, starting at $45 a month.
- Personalized Service: Local agents in all 50 states can help drivers set up pay-as-you-go insurance plans.
- Won’t Raise Rates: State Farm Drive Safe & Save reviews rave that it doesn’t increase rates for bad habits.
Cons
- Financial Downgrade: AM Best State Farm reviews recently downgraded its rating from A++ to A+ for the increased number of expensive claims.
- Not Renewing Policies: State Farm may not renew pay-as-you-go policies in some high-risk states like Florida, California, and Massachusetts.
#6 – Farmers: Best for Extra Discounts
Pros
- Easy-to-Get UBI Discounts: Drivers only need to score an 80% or higher in the Farmers Signal pay-as-you-go app to earn a discount.
- Discounts for Young Drivers: Farmers offers multiple discounts for drivers under 25, including savings for good grades and sharing the family car.
- Exclusive Affinity Discounts: If your employer or alumni association participates in Farmers GroupSelect, you can save more on pay-as-you-go insurance.
Cons
- Higher-Than-Average Rates: Farmers reviews show that rates are higher than what other companies on this list charge, even with pay-as-you-go discounts.
- Not In Every State: Farmers sells car insurance in every state, but Farmers Signal reviews show pay-and-go insurance isn’t available in CA, FL, HI, or NY.
#7 – Progressive: Best for Safe Drivers
Pros
- Safe Driver Rewards: Your safe driving habits can lead to substantial discounts with Progressive. See a list of discounts in our guide: Progressive Review
- Quick Sign-Up: Progressive focuses on innovative ways to bring you car insurance through its mobile pay-as-you-go insurance app.
- No Commitment: New and existing customers can try UBI through the Snapshot Road Test to see potential savings risk-free before signing up.
Cons
- Rate Increases: Progressive Snapshot reviews show that it can increase rates if it tracks speeding or hard braking.
- Limited Discounts: The initial participation discount is only available to new customers.
#8 – American Family: Best for Teen Drivers
Pros
- Low-Mileage Discounts: Low-mileage MilesMyWay plans help lower rates for high-risk teens by basing premiums solely on mileage.
- Encourages Safe Driving: Usage-based DriveMyWay plans track speed, braking habits, and more to set rates and teach teens safe driving.
- Generational Savings: Teens and new drivers added to an existing AmFam pay-as-you-go policy get additional discounts.
Cons
- Not in Every State: American Family is only in 19 states, and pay-as-you-go policies may not be available in all coverage areas.
- Higher Average Rates: AmFam pay-as-you-go isn’t the cheapest at $57 per month. Compare Quotes Now: American Family Auto Insurance Review
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Buying Pay-As-You-Go Car Insurance
Nationwide, Geico, and Liberty Mutual are the best pay-as-you-go auto insurance companies with high customer satisfaction ratings from J.D. Power.
Nationwide cheap pay-as-you-go auto insurance is available in more states, giving drivers options to save with SmartMiles pay-per-mile and SmartRide usage-based PAYG plans.
You should consider switching to car insurance on-the-go if you drive less than 10,000 miles a year or have been claim-free for a number of years.
You may also want to look at Progressive Snapshot for good driver auto insurance discounts to help lower rates for higher-mileage drivers.
When looking for the best pay-as-you-go insurance, consider factors such as pricing transparency, customer service reputation, and coverage flexibility.
Daniel Walker Licensed Auto Insurance Agent
Pay-per-mile insurance may not be the best option for everyone, but it is worth considering if you’re a safe driver, especially when Allstate offers a higher-mileage policy with its Milewise Unlimited plan.
The best way to find cheap pay-per-mile car insurance companies is to compare auto insurance quotes online and make sure you choose a policy that best fits your needs.
Frequently Asked Questions
What is the best pay-as-you-go car insurance?
Liberty Mutual, Geico, and Nationwide have the best pay-as-you-go car insurance. However, for temporary coverage, pay-as-you-go insurance like Hugo may be a better fit. If you’re looking to buy auto insurance online instantly and want to know which insurers offer the best digital-only or online-discounted policies for lower premiums, Progressive Snapshot is a great option.
Is pay-as-you-go auto insurance cheaper?
Pay-as-you-go plans can be cheaper, depending on how much you drive. It can be a good option for those who don’t drive frequently and have safe driving habits. Before enrolling in the program, ask yourself, “Is pay-as-you-go car insurance worth it?” since it may not be as cost-effective if you drive more than 10,000 miles per year.
How much is pay-as-you-go car insurance?
The cost of pay-as-you-go insurance depends on driving habits, mileage, location, vehicle, and provider. Whether you get daily pay auto insurance or standard pay-as-you-go coverage, you can find rates as low as $34 per month for minimum coverage. For full coverage, rates start at $103 per month in some states.
Use our free comparison tool to get quotes and find the best car insurance with pay-by-the-day policies, UBI, or mileage-tracking pay-as-you-go plans.
Who should get pay-as-you-go auto insurance?
Pay-as-you-go is the best auto insurance for good drivers who don’t drive very often. Those who work from home or take public transportation, students in college, and drivers with another car idling at home could all save money with pay-per-mile insurance.
Which companies offer the best rates for drivers who pay annually instead of monthly?
American Family has the biggest discount for paying annual premiums in full, up to 20%. Pay-in-full discounts can apply to DriveMyWay plans, but MilesMyWay premiums are calculated and paid monthly rather than annually or biannually. This article covers the pros and cons of paying annually: Should I pay my auto insurance in full?
What is the cheapest car insurance I can pay with a checking account?
Mile Auto and State Farm have the lowest average premiums at $41 and $45 per month, which you can pay through your checking account. Geico and Hugo also have the cheapest car insurance you can pay with a checking account online or through a mobile app.
Can I get car insurance discounts with a pay-per-mile policy?
You may be eligible for the same discounts with car insurance pay-as-you-go as you would with traditional car insurance, such as a safe driver discount or low mileage discount. Review offers from several insurers at once to find the discounts you qualify for.
How do pay-as-you-go auto insurance companies check mileage?
Insurance companies may use various methods to track your mileage, including odometer readings, global positioning systems (GPS), and plug-in devices.
Learn More: How Annual Mileage Affects Your Auto Insurance Rates
What happens if you exceed your annual mileage?
Some pay-per-mile insurance plans have penalties for exceeding your annual mileage limit. In contrast, others allow you to buy additional miles at a predetermined cost. Therefore, it’s important to keep track of your monthly mileage so you don’t end up paying more than expected.
Can you combine pay-per-mile and usage-based insurance savings?
These are two different types of policies, but UBI plans can qualify for low-mileage discounts based on how far you drive each year. Comparing usage-based auto insurance quotes with traditional and pay-per-mile policies will help you determine which type of PAYG plan saves you the most money. Enter your ZIP code to get free quotes now.
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