What is Usage Based Insurance?

Pay As You Drive (also known Pay Per Mile  or Pay as You Go Insurance) is insurance that adjusts rates based on the number of miles you drive, rewarding drivers who drive fewer miles. The less you drive the less you pay for insurance. Simple!

With pay per mile insurance you pay a relatively low monthly base rate and are then charged cents per mile for the miles you drive in a given month. Your monthly bill is your base rate added to the number of miles you drove over the course of the month. Other factors can weigh in on your adjusted rate depending on which provider you use. These additional factors include what times you drive, where you drive, driver history, and how fast you drive. Pay-As-You-Go insurance is based on a drivers behaviors, putting the drive in greater control of their insurance rates. Generally speaking, drivers who drive fewer than 10,000 miles should see a savings on their monthly premiums. Taking control of your insurance can not only reduce your monthly insurance bill, but can also help lower vehicle emissions when drivers focus on driving less.