Tara Mier for CheapInsurance.com

Pay-per-mile car insurance: Is it worth it for low-mileage drivers?

Since the COVID-19 pandemic began in 2020, many people have moved to remote or hybrid work. For many drivers, that means far fewer miles on the odometer, but they’re still paying for insurance plans built for heavy commuting.

Pay-per-mile coverage takes a different approach. Instead of charging a flat rate based on estimated annual mileage, the insurer bills for the miles you actually drive. It’s not a brand-new idea, but interest has grown as daily commutes become less common.

This guide from CheapInsurance.com explores how these plans work, who’s most likely to save, and the trade-offs involved, from budget benefits to the privacy questions that come with tracking your driving.

How

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