Metromile Car Insurance Explained

Metromile is a pay-per-mile car insurance company that uses a unique approach to calculate premiums based on how much you drive. This can lead to significant savings for low-mileage drivers.

The company was founded in 2011 and is headquartered in San Francisco, California. Metromile has since expanded to multiple states across the US.

Metromile's insurance policies are designed to be flexible and adaptable to your lifestyle. This means you only pay for the miles you drive, which can result in lower premiums.

For more insights, see: What Is Y Combinator Company

Metromile is a pay-per-mile car insurance company that allows you to pay for the miles you drive, not a flat monthly rate.

Their innovative approach to car insurance was founded in 2011 by Dan Preston and Steve Pretre, with the goal of providing a more affordable and fair option for drivers.

Metromile's insurance policies start at just $35 per month, with rates as low as $27 per month for low-mileage drivers.

Curious to learn more? Check out: Metromile Review

They offer a range of coverage options, including liability, collision, and comprehensive coverage.

Metromile's pay-per-mile model is made possible by a small, sleek device called the Metromile Pulse, which tracks your driving habits and mileage.

This device is small enough to fit on your windshield and is completely wireless.

The Metromile Pulse is not a GPS tracking device, but rather a mileage tracker that records your driving habits and sends the data to Metromile's servers.

Metromile offers a range of coverages to protect you and your vehicle.

Their standard liability insurance includes bodily injury liability coverage of up to $25,000 per person and $50,000 per accident.

You can also purchase comprehensive and collision insurance, which comes with a $500 deductible.

Metromile's policy also includes personal injury protection (PIP) and medical payments (MedPay) coverage.

Additionally, they offer a collision deductible waiver, which eliminates your deductible if you're in an accident caused by an uninsured driver. This coverage is available at an additional cost.

Broaden your view: Comprehensive and Collision Coverage Covers

Here's a breakdown of Metromile's coverage limits:

Metromile also offers a unique feature: $1,000 of pet injury coverage if you purchase collision and comprehensive coverage.

Metromile offers a range of car insurance options, including liability, collision, comprehensive, personal injury protection, and uninsured and underinsured motorist coverage.

These options are standard in the industry, but what sets Metromile apart is its unique pricing model. Drivers who are interested in Metromile should get a quote to compare with other options.

A quote comparison can help you determine how much you could save, and Melanie Musson, a nationally recognized car insurance expert, recommends it. Metromile may be a good option, especially if you drive fewer than one thousand miles a month.

The Metromile driving app is a game-changer for car owners. It provides valuable insights into trips and car health, simplifying car ownership.

The app offers features like street sweeping alerts, which notify drivers if their car is parked in a street sweeping zone. This can save drivers from getting fined or towed.

Discover more: Metromile App

The car health monitor is another useful feature, allowing drivers to keep track of their car's condition. Some users have even recovered their stolen vehicles by knowing their car's location.

The app is available for both Apple iOS and Google Android phones, making it accessible to a wide range of users. In June 2015, the Metromile Tag was introduced, giving non-insurance customers a way to use the driving app.

Traditional insurance policies usually last six months or a year, with premiums split into equal monthly installments. This means that drivers pay the same amount every month, regardless of how many miles they drive.

Metromile, on the other hand, tracks the number of miles driven each month and bases rates directly on that number. This is a key difference between Metromile and traditional insurance.

In traditional insurance, policyholders may be able to earn a discount for practicing good driving habits, but this is not the case with Metromile. Instead, Metromile's rates are based on a driver's driving and claim history.

Metromile's base rate and per-mile rate are based on a driver's driving and claim history, with those who are considered higher risk paying more. This is a more nuanced approach than traditional insurance, which often treats all drivers the same.

Here's a comparison of some of the key features of traditional insurance and Metromile:

In summary, Metromile offers a more flexible and personalized approach to car insurance, with rates based on actual miles driven rather than a fixed monthly premium.

Metromile's rates are compared to top competitors in the insurance market. Metromile's liability policies are more expensive than others, likely due to its pay-per-mile model.

The cost of Metromile's full-coverage policies is almost in the middle of the pack. This suggests that it's worth comparing quotes from Metromile and several competitors to find the best option.

Here's a comparison of Metromile's rates with top competitors:

Metromile's rates for full-coverage policies are relatively competitive, but it's essential to compare quotes from multiple companies to find the cheapest option.

Metromile's rates can vary significantly depending on the number of miles driven. For example, driving between 5,000-7,500 miles a year can cost around $1,878 with Metromile, while the same mileage with Progressive can cost around $2,196.

Metromile insurance is available to most drivers, but your rates will vary based on your driving history, age, credit score, and other factors.

Your neighbor may pay a different rate than you, depending on these individual factors.

Young drivers, like those in their 20s, can expect to pay high rates with Metromile, with a base rate of $144 per month plus 34 cents per mile for full coverage.

The average annual premium for a 20-year-old driver nationally is $3,816, but it's possible to save by limiting your monthly miles to fewer than 500.

Age plays a significant role in determining car insurance rates, with younger drivers facing higher premiums.

Younger drivers, particularly teens and 20-year-olds, pay significantly more for car insurance than older drivers. For example, a 20-year-old driver from Los Angeles was quoted a base rate of $144 per month plus a mileage rate of 34 cents per mile for full coverage.

The average annual premium for a 20-year-old driver nationally is $3,816, which can be reduced by limiting the number of miles driven.

In contrast, older drivers tend to pay lower premiums, with adults (40 years old) and retirees (65 years old) paying an average of $107 and $123 per month, respectively, for liability-only policies.

Here's a breakdown of average Metromile car insurance rates by age group:

Keep in mind that accident rates tend to increase again after drivers reach age 70, when reaction time slows and other issues can impact driving ability.

Your eligibility for Metromile insurance is determined by your driving history, age, credit score, and other factors. This can result in big differences in your rates compared to your neighbor.

Your driving history is a key factor in determining your eligibility, as it shows how safely and responsibly you drive.

A good credit score can also help you qualify for lower rates with Metromile.

Metromile's claims process is surprisingly streamlined, thanks to its AI-powered claims system, AVA. AVA collects your information, verifies your coverage, and processes the claim, making it easy to file a claim.

However, some customers have complained about being unable to contact adjusters with questions or updates, which can be frustrating. According to Clearsurance.com, this is a common issue.

Despite these complaints, some customers have had positive experiences with Metromile's claims process. For example, one customer was able to resolve a claim for auto glass within two weeks.

Customer Reviews are a mixed bag for Metromile. Most people write reviews when they're unhappy, but few write when they're satisfied.

According to Clearsurance.com, a common complaint is that while claims are easy to file, customers have a hard time contacting adjusters with questions or updates. This can be frustrating for customers who need help resolving their claims.

Metromile's customer reviews lean negative on Trustpilot, Reddit, Quora, and the Better Business Bureau (BBB). This suggests that some customers have had a poor experience with the company.

Metromile's claims process is handled through their AI claims system, AVA. AVA collects your information, verifies your coverage, and processes the claim.

You can submit a claim through the AVA system, and you'll be connected to a local repair shop and rental company if needed. The company will send an insurance adjuster to verify the damage and help process the claim.

Some customers have reported issues with not being able to get in touch with an adjuster, but others have had a smooth experience. For example, one policyholder was able to resolve a claim for auto glass within two weeks.

The Metromile app uses AVA to help streamline its claims process. AVA can reconstruct the scene of an accident and verify your claim details, which can lead to automatic approval of your claim in some instances.

You can opt into AVA's direct repair program, which provides a list of preferred local repair shops. Once you choose a preferred shop, AVA will send payments directly to your repair center and keep you updated on the repair process.

Policyholders with rental car coverage can coordinate a rental through Enterprise Rent-A-Car using the Metromile app. AVA will automatically send payments of up to $30 per day directly to Enterprise, eliminating the need for you to pay for your rental car and wait for reimbursement.

For your interest: International Motor Insurance Card System

Metromile's customer service has received mostly negative reviews online, with many customers expressing frustration with the slow claims process and claims being processed by a third party.

Customers have reported difficulty contacting adjusters with questions or updates, and some have even received notices to submit additional documentation, often well into the policy term, or risk cancellation.

The company's chatbot is available 24/7, but it took seven minutes to connect with an agent who was knowledgeable and professional during a test.

Over the phone, it took 18 minutes to speak with an agent, who was also knowledgeable and friendly, but the phone line is only open Monday through Friday from 7 a.m. to 5 p.m. PT.

Reviews of Metromile customer service lean toward the negative, and many customers have reported being surprised by a slow claims process.

According to the National Association of Insurance Commissioners (NAIC), Metromile received more than five times as many complaints as would be expected for an insurer of its size.

Customers have also complained about delays and denials of claims, as well as cancellation and billing issues.

The Metromile Pulse device is a small wireless device that plugs into your car's diagnostic port. This is how Metromile tracks your miles.

The Pulse is free for Metromile drivers and can be used in conjunction with the Metromile smartphone app. The app helps you find your car if you forget where you parked, and alerts you to certain issues with your vehicle through error code detection.

To install the Pulse, simply insert the device into your car's on-board diagnostics port, or OBD-II port, usually located under the steering wheel. A light on the device should begin to flash.

Here are the features of the Metromile Pulse:

In some states, Metromile also uses the Pulse to monitor and adjust rates based on driving behavior. For example, in Arizona, Illinois, Oregon, and Virginia, Metromile takes into account which days of the week you drive, what times of day you drive, and your average speed while driving.

Metromile has some competition in the pay-per-mile auto insurance market.

Metromile's main competitor is Allstate, which has a program called Milewise available in 17 states. This program is designed for people who drive less than the average driver, such as stay-at-home parents, commuters, and retirees.

Nationwide Mutual also offers a pay-as-you-drive insurance policy called SmartMiles, which is available in 44 states. This is a significant advantage over Metromile, which is currently only available in a limited number of states.

Some other companies, like Mile Auto, are also entering the market with their own pay-per-mile insurance options. However, these are still relatively new and limited in their availability.

Here's a quick comparison of the pay-per-mile insurance options from Metromile and its competitors:

It's worth noting that while Metromile has some competition, it's still a relatively new concept, and there may be more options available in the future.

Lemonade is a parent company of Metromile, offering a wide range of insurance products. They provide car, home, life, pet, and renter insurance.

Metromile drivers can earn a bundling discount by purchasing one of Lemonade's other insurance products, such as home or pet insurance.

If you have a Metromile policy, you can take advantage of this discount to save on your insurance costs.

Here are the different types of insurance products offered by Lemonade:

In July 2022, Lemonade acquired Metromile, and the Metromile brand will eventually sunset.

Lemonade is buying Metromile, an insurance company that offers car insurance with a twist - lower rates for drivers who don't drive much.

The acquisition is a strategic move by Lemonade to expand its reach and improve its data collection system. Lemonade's auto insurance app already monitors driver mileage, and it's likely that Metromile's app-based data collection system will be integrated into Lemonade's platform.

Metromile is a registered insurance entity in 49 states, which means its pay-per-mile service will expand beyond its current eight-state reach. This is good news for drivers who want to save money on car insurance by driving less.

Lemonade plans to morph Metromile's brand and app into its own Lemonade Car brand at some point. This suggests that Lemonade is serious about making the most of Metromile's technology and expertise.

Metromile's unique pay-per-mile insurance model is a game-changer for drivers who don't put many miles on their vehicles. This approach can lead to significant savings for low-mileage drivers.

Metromile's insurance rates are determined by a combination of factors, including miles driven, driver behavior, and vehicle type. By using a smartphone app to track driving habits, Metromile can offer personalized rates that reflect a driver's actual risk.

Metromile's insurance policies are offered in several states, including California, Illinois, New York, and Washington. If you live in one of these states, you can take advantage of Metromile's innovative approach to car insurance.

Metromile's customers rave about the company's excellent customer service and user-friendly app. One customer even reported saving over $500 per year by switching to Metromile.

Recommended read: Vehicle Insurance in the United States