Category: Metromile

Metromile is a technology-driven auto insurance company that pioneered pay-per-mile pricing, charging drivers based primarily on how many miles they actually drive. Founded in 2011 and headquartered in San Francisco, Metromile targets low-mileage drivers who subsidize high-mileage drivers under traditional flat-rate insurance. The company combines a low monthly base rate with a per-mile fee, allowing people who drive less to pay substantially less for coverage. ABOUT METROMILE Metromile launched with a mission to make car insurance fairer for people who don’t drive much. The company recognized that traditional flat-rate pricing means low-mileage drivers effectively subsidize those who drive far more, since both pay similar premiums despite very different risk exposure. Metromile’s pay-per-mile model addresses this by tying a significant portion of the premium directly to miles driven. Metromile uses a small wireless device called the Metromile Pulse that plugs into a vehicle’s diagnostic port to track mileage accurately. The company combines this usage data with traditional rating factors to set pricing. Metromile was acquired by Lemonade in 2022, integrating pay-per-mile expertise into the broader insurtech platform while continuing to serve low-mileage drivers. PRODUCTS OFFERED Metromile focuses on personal auto insurance with a pay-per-mile pricing model. Coverage includes standard components such as liability, collision, comprehensive, uninsured and underinsured motorist, and medical payments. The pay-per-mile structure applies a low monthly base rate plus a per-mile charge, with daily mileage typically capped so long trips do not result in excessive charges. KEY STRENGTHS Metromile’s primary strengths include substantial savings for low-mileage drivers, transparent pay-per-mile pricing tied to actual usage, accurate mileage tracking through the Pulse device, a daily mileage cap that protects against expensive road trips, a fully digital app-based experience, and a smart driving app with trip tracking and vehicle features. The model rewards people who drive less with fairer pricing. CONSIDERATIONS Metromile is most beneficial for low-mileage drivers and may cost more for those who drive a lot. The pay-per-mile model requires the Pulse device installed in the vehicle. Availability is limited to certain states rather than nationwide. The fully digital model means no in-person agent support. High-mileage drivers and those who prefer traditional flat-rate pricing may find conventional insurers more suitable. STATES SERVED Metromile operates in a limited number of US states rather than offering nationwide coverage. Availability has shifted over time, particularly following the Lemonade acquisition. Prospective customers should confirm current availability in their specific state before planning to enroll in pay-per-mile coverage.