"Traditional car insurance sets premiums based partly on estimated annual mileage. Pay-per-mile splits the cost in two: Base rate. Covers risks like theft, fire, or weather-related damage. Per-mile rate. A set amount for every mile driven. Mileage is confirmed through telematics devices, odometer photos, connected-car systems, or smartphone apps. Many plans include a daily mileage cap, so the occasional road trip doesn't blow your monthly total."
"Only a few insurers offer true pay-per-mile coverage nationwide, and availability differs by state. Programs vary in how they track mileage, apply daily caps, and award discounts. Some limit billable miles each day; others average usage over time. Who benefits most The biggest gains generally go to: Remote or hybrid employees without a regular commute City residents who mainly use public transport or cycle Retirees who drive less than they used to Students or part-time workers with limited driving needs"
Remote and hybrid work patterns since 2020 have reduced many drivers' annual mileage while many insurance plans still assume heavy commuting. Pay-per-mile insurance separates premiums into a base rate that covers fixed risks and a per-mile charge based on actual driving. Insurers confirm mileage through telematics devices, odometer photos, connected-car systems, or smartphone apps, and many plans include daily mileage caps. Coverage options mirror standard policies, but availability and program details differ by state and insurer. The largest savings go to low-mileage drivers, and studies point to both cost and environmental benefits.
Read at Miami Herald
Unable to calculate read time
Collection
[
|
...
]