Does Allstate car insurance offer a pay-per-mile policy?

Milewise is Allstate’s pay-per-mile program that saves low-mileage drivers on car insurance. Milewise has both a daily rate and a per-mile rate that combine to create your total rate.

Although Allstate has a similar program called Drivewise, that program offers a refund based on safe driving skills. On the other hand, Milewise charges lower rates from the start.

Drivers who work from home, stay-at-home parents, or those who live near public transportation are a good fit for Milewise. However, drivers who stick to a strict budget won’t like that their rates change monthly.

Continue reading to learn more about Allstate’s pay-per-mile program and if pay-as-you-go car insurance is right for you.

What is Allstate’s pay-per-mile program?

With increasingly more drivers working from home, less time is spent commuting. Therefore, it’s doesn’t make sense for low-mileage drivers to pay for a traditional car insurance policy if they drive less often.

Milewise is Allstate’s answer for drivers who spend little time behind the wheel. While Milewise offers standard coverage, mileage partially determines rates. The less you drive, the more you save.

However, Milewise is only available in 21 states. So not all drivers can determine if pay-per-mile insurance will save them money. In addition, if you are already an Allstate customer, you will have to cancel your current policy to sign up for Milewise.

Knowing when you should consider pay-as-you-go car insurance can be challenging. On average, drivers put approximately 13,000 miles on their vehicles each year. So pay-per-mile insurance may be a good fit if you accumulate less than average mileage. (For more information, read our “The Average Miles Driven Per Year in North America“).

The good news is that a weekend road trip won’t significantly increase your Milewise rates since mileage is capped each day. Any mileage over that cap is free.

How does Allstate Milewise work?

Milewise is simple to use. Once you sign up, you receive a telematics device that plugs into your vehicle. Then, you download the Allstate app, and the two work together to determine your rates.

The Milewise device records a lot of data. Not only can it alert you to vehicle maintenance needs, but it also documents driving behaviors, including mileage, speed, braking, and location. This data detects any safe driving issues that may arise.

Your Milewise rates combine a daily base rate and a per-mile rate. Rates vary but are typically less than average Allstate car insurance rates.

First, the daily rate is calculated using the normal factors that affect car insurance rates, such as your age, driving history, and ZIP code. This rate is usually inexpensive, but rates vary by driver. For example, drivers with an unfavorable driving record, or who are very young, will see higher rates.

Then, a very low per-mile rate is charged for mileage each day. You only pay the base rate if you don’t drive on a particular day.

For comparison, this table discloses average Allstate car insurance rates based on coverage type.

Allstate Average Car Insurance Rates Based on Coverage Type

Allstate rates average $400 a month. That’s significantly higher than low-mileage drivers would pay with Milewise.

However, Milewise rates change based on how much you drive. The cost of your drive is deducted from your pre-paid account at the end of your excursion. Because rates change constantly, budgeting can be difficult.

How is Milewise different than Drivewise?

Although both Milewise and Drivewise use telematics to monitor driving, the programs are very different.

While Milewise is mainly concerned with mileage, Drivewise monitors your driving behaviors, including speed, hard braking, and the time of day you drive.

Drivewise offers cash back based on how safely you drive. Your standard car insurance rates still apply. You simply receive a refund if you drive safely.

Milewise and Drivewise can make you a safer driver. According to the Insurance Information Institute, immediate feedback offered from both programs encourage safer driving. In addition, drivers are more likely to practice safe driving if behaviors are observed.

Read our Allstate Drivewise review to learn more about the program.

What are other ways to save with Allstate car insurance?

Car insurance discounts are one of the best ways to acquire lower rates. Milewise drivers can still take advantage of reductions and participate in the program.

This table reveals Allstate car insurance discounts that may be available to you. The savings amount is listed if known.

Allstate Car Insurance Discounts

Additionally, Allstate drivers can lower rates by increasing deductibles, reducing coverage, and removing add-ons like rental car coverage.

Allstate’s Pay-Per-Mile Program: The Bottom Line

Milewise, from Allstate, is a pay-per-mile program that rewards low-mileage drivers with low rates. Milewise rates are a combination of a fixed daily rate and a per-mile rate. As a result, your total car insurance rates vary based on how much you drive.

While drivers who work from home can take public transportation, or stay-at-home parents can obtain lower rates with Milewise, it’s not available everywhere.

Milewise differs from Drivewise, which offers a refund based on monitored safe driving habits. Although Milewise also records certain driving behaviors, that data encourages safe driving, not changing your rates.

Allstate drivers can also use discounts to lower auto insurance rates. Milewise drivers will be excluded from some reductions, such as paid in full discounts, but will have lower rates overall.