You need car insurance to drive legally (except in New Hampshire and Virginia) and to protect your finances in the event of an accident, but what if you don’t drive frequently?
Forking over hundreds or thousands of dollars annually for an auto insurance policy can feel like a waste if you typically only drive to the grocery store. And since many more Americans are now working remotely due to the pandemic, long daily commutes have largely been eliminated.
Pay-per-mile car insurance is one money-saving solution you can turn to if you drive fewer miles than the average driver. And Allstate Milewise is one car insurance policy you can consider. With Milewise, you’ll pay a low daily rate that’s customized based on several individual factors, along with a per-mile rate when you drive.
It’s also possible that you could save money simply by switching insurance providers. Since circumstances can change (like your typical mileage), it’s a good idea to check your customized quotes with several different insurance providers every six months. This will ensure you’re still getting the best deal.
Whether you choose to sign up with Allstate Milewise or another company, you can start your search with Insurify. You’ll just need to answer a few questions, and we’ll show you rates for cheap car insurance from up to 20 different insurance companies. It’s the easiest way to get the best deal on an auto insurance policy.
Allstate Milewise: What is it, and how does it work?
Here’s the basics on Allstate Milewise.
What is Allstate Milewise?
Milewise is an insurance product from Allstate that allows policyholders to pay as they go. You’ll get a custom daily rate plus a per-mile rate every time you get behind the wheel. For example, you might pay $1.50 per day plus $0.06 per mile. If you’re only driving a few miles per day on average, this can be a way to save a significant chunk of change. Milewise even gives drivers a daily mileage cap, so you won’t incur hefty charges if you take the occasional road trip. However, Milewise is only available in the following locations:
- New Jersey
- West Virginia
- Washington, D.C.
To track your mileage, Allstate will send you a small device to plug into your car underneath the steering column. The device must be plugged in and working properly to record your trips and calculate your costs.
In addition to the telematics device, you’ll need the Allstate Milewise app. You can use the app to review your trips and the associated costs, get feedback on your safe driving, check vehicle diagnostics, access your policy details, and more.
What’s the difference between Allstate Milewise and Allstate Drivewise?
Drivewise is an Allstate program designed to reward you for safe driving behavior. When you add Drivewise to your existing Allstate insurance policy, you’ll get a telematics device that measures factors like how hard you brake, how fast you drive, and when you drive. The Allstate mobile app will show you how much you’ve earned in rewards thus far, and you’ll get those savings in the form of cash back every six months.
This is different from Milewise, which is a program that allows you to pay for insurance by the mile. The two programs don’t work together.
How pay-per-mile insurance works
With pay-per-mile insurance, your insurance costs are determined by how often you drive, rather than predetermined when you sign up for a policy. If you drive frequently, it’s not likely you’ll save money by using a pay-per-mile insurance plan. But if you drive less than average (the average person drives about 13,500 miles per year), you can rake in the savings.
What does Milewise record?
Allstate’s Milewise telematics device records your mileage, speed, time of day, location, and driving events, such as hard braking.
How is my information used?
Your mileage is used to determine your costs, while safe driving information is used to provide you with feedback on your driving habits.
Am I eligible for Allstate Milewise?
If you live in one of the states where Milewise is offered and your vehicle is new enough to handle the telematics device (typically 1996 or newer), you can sign up for the Allstate Milewise program. Note that if you are an existing customer with a traditional insurance plan, you’ll likely need to cancel your current policy and sign up for Milewise separately.
Allstate Milewise Costs and Discounts
Allstate determines your daily base rate and per-mile rate based on factors such as your driving record, location, age, gender, occupation, and credit score. These are the same criteria used to determine the premiums for a traditional auto policy.
While Milewise customers are eligible for most discounts available with traditional policies, some savings opportunities are reserved for standard policies. For example, you can’t get Drivewise in addition to Milewise. And since you pay as you go and keep a credit or debit card on file, you won’t be eligible for any payment discounts, such as the full-pay discount.
That said, Allstate offers numerous other discounts that could reduce your rate, including:
- Anti-lock brake discount
- Anti-theft device discount
- Multi-policy discount
- New car discount
- Smart student discount
Allstate Milewise: Step by Step
Start by entering your ZIP code and getting a quote from Allstate. You’ll need personal information such as your address and date of birth, along with vehicle information such as your car’s year, make and model, and VIN.
2. Setting Up Your Device and App
Locate your vehicle’s OBD-II port near the steering column. Typically, it’s on the driver’s side under the dash. Simply match the V-shape orientation of the plug with the port and click it into place. You’ll also need to download the Allstate mobile app, which is available on Google Play and the App Store, and set up an account if you haven’t already.
3. Monitoring Your Insurance Costs
The Allstate app will ask you to set a spending goal for the month. You can view your trips, track your progress, and get feedback on your driving habits. You’ll also need to have a credit card or debit card on file. When you hit your minimum balance, Milewise will automatically reload your account. So while you’ll want to keep tabs on your driving and spending, there’s no need to remember the due date for your bill.
4. How to Cancel
To cancel an Allstate Milewise policy, you’ll need to call your Allstate agent. Have your account number ready to go when you dial. You may also be asked to provide a written request for cancellation.
Allstate Milewise: Is it worth It?
Allstate Milewise works similarly to other pay-per-mile insurance plans, such as Metromile, but has the benefits of an established insurer with good financial strength ratings. It may not be worth it for workers with a long daily commute or frequent road-trippers, but it’s a great option for remote workers, retirees, and home parents who use their cars less frequently than the average driver.
Pros and Cons
Allstate Milewise Reviews
Allstate Milewise is a new program, and specific customer reviews for Milewise insurance coverage are difficult to find. However, Allstate auto has an average rating of 3.9/5 stars with Consumer Affairs, which is comparable to other companies in the insurance industry.
Allstate Milewise Contact Information
|Web||Milewise from Allstate|
|Mobile app||Google Play and App Store|
|Phone||1 (877) 389-0047|
Is Milewise worth enrolling in?
As with any pay-per-mile program, the value will depend on individual factors influencing your insurance rates in addition to the frequency of your driving. If you often take public transportation or work from home and only drive occasionally, Milewise is worth looking into. That said, you should always compare quotes from different insurers to make sure you’re getting the best deal.
Can I trick the Allstate Milewise device so I can pay less?
No. The telematics device must be plugged in and operating for accurate billing. If you unplug the device, you risk violating the terms of your policy.
Where can I find the cheapest car insurance?
Pay-per-mile car insurance isn’t necessarily the cheapest option for infrequent drivers. The best way to ensure you get the cheapest rate on an auto policy is to compare customized quotes. This can be time-consuming and frustrating if you go the route of visiting every insurer’s website to get a quote. But Insurify makes it super easy to compare rates all in one place. You’ll just need to answer a few questions to get started.
Conclusion: How to get the best and cheapest car insurance
The best way to get the cheapest premium for the coverage you need is to compare personalized quotes from different insurance companies. Rather than calling agents or messing with spreadsheets, just visit Insurify to get up to 20 car insurance quotes in one spot. Your estimated premiums will be based on the information you provide, so you can accurately assess the cheapest provider for you. You can even toggle between coverage amounts until you find a policy that fits your budget. It just takes a few minutes, and it could potentially save you hundreds of dollars annually on car insurance.