Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that exis...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Apr 22, 2020

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Here's what you need to know...

  • State Farm and Allstate have stated that they are considering pay-per-mile auto insurance
  • Pay-as-you-go insurance could save you a lot of money
  • Compare at least three different companies before you make a final decision for auto insurance coverage

Insurance Commissioner Steve Poizner of California released regulations permitting and authorizing mileage verification for pay-as-you-drive.

The idea being that Californians won’t drive as much if they pay-per-mile.

Compare auto insurance rates online from competing insurance companies. Find affordable auto insurance in your area when you enter your zip code above!

Fact or Fiction?

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Spokesmen from a few auto insurance companies, including State Farm and Allstate, have stated that they are considering pay-per-mile auto insurance but haven’t decided whether or not it’ll actually become a reality.

Leisure driving may be reduced, and families will be more responsible about grouping trips together and making unnecessary trips.

Carpooling would also most likely see an increase.

It also might encourage owning multiple vehicles, because families wouldn’t be paying for cars that just sit there.

From a consumer perspective, the change makes a lot of sense.

From the heavy purse of an insurance provider, however, I’m not sure if this is a change they’re hoping for.

Regardless of whether pay-as-you-go is ever available to you or not, checking to make sure you’re getting the best rates you can right now is a great idea.

Enter your zip code below to get started comparing free auto insurance rates and start saving some money!

References:

  1. https://www.statefarm.com/
  2. https://www.allstate.com/
  3. http://www.sciencedirect.com/science/article/pii/S136984780900045X