In 2025, more people are choosing smart and flexible ways to save money on car insurance. One popular option is pay-per-mile car insurance.
This type of insurance is perfect for people who don’t drive very often. Whether you work from home, use public transport, or just take your car out on weekends, pay by mile car insurance helps you pay only for what you use.
Instead of paying a fixed monthly amount, your cost depends on how many miles you drive. It’s a great option for low-mileage drivers and is becoming more common in the U.S. and other countries.
In this blog post, we will talk about the top pay-per-mile insurance companies in 2025, how each one works, and which one might be right for you.
If you are a low-income driver, then no-deposit car insurance is for you.
What is Pay-Per-Mile Car Insurance?
Pay-per-mile insurance (also called usage-based insurance) is simple to understand. You pay a small base fee every month, and then you pay a few cents for every mile you drive.
This is different from regular insurance, where you pay the same amount every month, even if you don’t drive your car at all. With pay-per-mile, you save money if you drive less.
This type of insurance is useful for students, remote workers, retirees, or people living in big cities who mostly walk or take buses.
It also encourages safe and responsible driving since some companies offer extra discounts based on your driving habits.
Here are the top car insurance companies for new drivers.
Top Pay-Per-Mile Car Insurance Companies in 2025
1. Metromile Car Insurance
One of the most popular companies in 2025 is Metromile. Metromile has been a leader in pay-per-mile insurance for years.
It charges a low monthly base fee plus a per-mile rate. You only pay for the miles you actually drive. Metromile also offers a user-friendly mobile app where you can track your mileage, view your bills, and manage your policy.
The app even helps you find where you parked your car. They also include free roadside assistance and fast claims service. Metromile is a great option if you want modern features and live in one of the states where it’s available.
2. Mile Auto Insurance
Another strong option is Mile Auto, which focuses on simplicity and privacy. Unlike other companies, Mile Auto does not require any GPS tracking or devices in your car.
Instead, you just take a photo of your car’s odometer once a month and send it through their app. This way, they know how many miles you drove.
It’s a private and easy method, ideal for people who want less tech involvement. If you care about your privacy and want a no-stress insurance option, Mile Auto is a top choice.
3. Allstate Milewise Insurance
Allstate Milewise is a product from the well-known Allstate Insurance company. This plan charges you daily based on your mileage.
You need to plug a small device into your car, which tracks how many miles you drive and how safely you drive. You can see your progress in the Allstate app.
Safe drivers may also get extra discounts. Allstate Milewise is a good option if you already use Allstate or if you want a plan that rewards safe driving habits. It’s reliable and backed by one of the biggest names in the insurance industry.
4. Nationwide SmartMiles insurance
Nationwide SmartMiles is another excellent pay-per-mile insurance plan for 2025. It also uses a plug-in device to track your driving.
With SmartMiles, you pay a base monthly fee and then a small amount per mile. One of the best things about SmartMiles is that it comes with accident forgiveness and safe driving rewards.
This means your rate won’t go up after your first accident, and you can save more by driving carefully. SmartMiles is a great choice if you want more benefits along with flexible billing.
5. Hugo Insurance (Per-Day Billing)
If you’re looking for a unique pay by mile insurance plan, Hugo Insurance might be for you. Hugo is different because it offers per-day car insurance.
This means you only pay for the days you drive. You can turn your insurance “on” and “off” anytime using their mobile app.
Hugo is great for people who rarely use their car, or for those who want total control over their coverage. It’s also popular among delivery drivers and gig workers who only need insurance a few days a week. Hugo is a flexible and fast option for drivers with changing schedules.
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How to Choose the Best Pay-Per-Mile Insurance
To choose the best pay per mile car insurance company in 2025, first look at your own driving habits. If you drive less than 1,000 miles a month, pay-per-mile insurance can help you save a lot of money.
Also, think about whether you’re okay with GPS tracking or if you prefer a private plan like Mile Auto. Availability is also important; some companies only offer service in certain states.
Lastly, check for extra features like roadside help, mobile apps, or accident forgiveness, which can add more value to your plan.
Conclusions
In conclusion, the best pay-per-mile car insurance company in 2025 depends on what you need. If you want a trusted and well-known brand, Allstate Milewise or Nationwide SmartMiles are both excellent.
If you want no tracking and easy use, Mile Auto is the best choice. For tech lovers, Metromile has a powerful app and modern tools.
And if you rarely drive, Hugo’s pay-per-day plan gives you full control over your spending. All of these companies offer smart, flexible, and money-saving options for today’s drivers. So if you don’t drive much, now is the perfect time to switch and let your miles decide your money.
