Metromile is bringing a new style of car insurance to the
market, and it's great for those who aren't best car insurance around
though?
putting in a lot of miles behind
the wheel. While traditional car insurers determine the bulk of your rate
through complex formulas, Metromile emphasizes the amount you drive yearly.
Does a better rate automatically translate into the
Metromile Review: Low-Cost Auto Insurance for Occasional
Drivers
Metromile tends to rank among the top three cheapest car
insurance for those who drive infrequently (less than 12,000 miles). The young
company believes how much a person drives is the biggest indicator of their
likelihood of getting into an accident. About half of your rate is based on how
many miles you drive per year. The other half is the base rate, which is a
fixed amount determined by your driving history, type of car you drive, and
amount of coverage. As a result, your auto insurance premium will change each
month based on your mileage, which might not be ideal for drivers who prefer a
fixed monthly payment that's easier to budget around. If you consistently drive
a few miles every month, then Metromile Pulse may just be the key to saving on
car insurance.
Metromile keeps track of your miles by giving you a small
device called a Metromile Pulse, which hooks up to your car's diagnostic port.
While some people may be uncomfortable with devices that track their GPS, the
Metromile Pulse may well be worth it in terms of reducing your costs. In
conjunction with the Metromile smartphone app, the Pulse keeps track of your
driving routes, and tells you how to cut down travel time, and even optimize
for gas for further savings.
There are some considerations, however. If you drive more
than 12,000 miles a year (which is the national average), then Metromile will
be more expensive than other options. Next, as a company that focuses on price,
there seem to be shortcomings with its claim process based on customer
feedback. While drivers may file a claim 24/7, the process has been purported
to be slow and at times frustrating. The young company is also only available
in seven states (CA, IL, NJ, OR, PA, VA, WA), so it will not be available for a
majority of motorists.
?How Does Metromile Work
How does Metromile keep track of your miles? Simply, they
send you a Metromile Pulse which is a small wireless device that plugs into
your car’s diagnostic port. From there it will keep track of your miles. Unlike
Progressive’s Snapshot, which also tracks your miles, it will not keep track of
your driving habits. For example, if you tend to brake hard, or drive fast, the
Metromile Pulse won’t report that. Progressive customers who signed up for the
Snapshot, but had those habits actually saw their rates go up. You won't have
to worry about that with Metromile.
In terms of pricing, Metromile quotes you two values. The
first is a base rate which you pay every month. The base depends on standard
factors like your driving history, the car you drive, and the coverage you
want. Like with other insurance companies, going with full coverage over basic
will generally double the price. If you are young and/or risky driver, the base
rate will also be higher. The second is a cost per mile rate, which is
multiplied by your estimated monthly mileage. The two numbers are added, and
that’s your monthly rate. Take for example, a base rate of $40 and a rate
per mile of 5 cents. If you drive 200 miles a month (about 2,400 a year) your
monthly rate will be $50 per month ($40 + (0.05 * 200)). If you suddenly need
to drive 600 miles in one month, then that month increases to $80, which might
put a strain on a tight budget. Metromile won’t charge you more than 150 miles
a day if you were to go on a road trip.
How Do You Get a Quote and What Coverage Do You
Get?
Like most other large insurers, Metromile has a simple
online form that does not require speaking to an agent. You will be asked like
in any other quote form to input information on your vehicle (make, model,
type, year, annual mileage), your driving history (accidents, and incidents),
and then information about yourself (age, marital status, driver’s license
status, and occupation). Once you get your quote, you can purchase the policy
from the website with a credit card. If you sign up multiple cars on the
policy, each will get its own base rate, and each will get its own mileage
rate. In terms of types of coverage, Metromile offers the same as every other
auto insurance company.
Bodily Injury and Property Damage Liability are mandatory
Optional Uninsured Motorist Insurance (unless it is
mandatory in your state
Personal Injury Protection (PIP) and Medical Payments
(MedPay
Collision and comprehensive insurance (which comes with
deductibles of $250, $500, and $1,00
Depending on your state some coverages will be mandatory or
optional. In Oregon for example, you will have to purcahse PIP.
?Will Metromile Save You Money
Metromile does have the potential to save you lots on your
car insurance--but only if you are an infrequent or occasional driver. Although
a mile may only cost a few cents, driving 12,000 miles (the national average)
per year translates to several hundred dollars. Typically, the base rate will
be less than $50 for the sample 30 year old clean driver we evaluated, but
several accidents, or opting for full coverage will increase it. We took a look
at Metromile quotes from their home state of California, and compared it to
quotes from other companies. The prices below reflect a 30 year old male driver
of a 2011 Toyota Camry from Los Angeles, who has opted for full coverage car
insurance.
Company 6,000
Miles 12,000 Miles 18,000 Miles
Metromile $1,116 $1,476 $1,908
GEICO $1,188 $1,282 $1,380
Nationwide $1,524 $1,704 $1,692
Progressive $1,536 $2,100 $2,384
Century National $1,572 $1,668 $1,968
Grange $1,656 $1,716 $1,716
State Farm $2,052 $2,052 $2,052
Unitrin $2,196 $2,196 $2,580
Bristol West $2,352 $4,056 $4,428
Allied $2,592 $2,604 $2,628
Kemper Specialty $2,760 $2,940 $3,516
Our driver who drove less than 6,000 miles would be saving
at least $400 a year by going with Metromile over every other company beside
GEICO. For those who drove 12,000 miles would also be saving a good deal
by going with Metromile. Anything over that though, other companies offer
better deals.
