Metromile is an insurer whose rates comprise a fixed base rate and a cost per mile rate. When adequately analyzed, tells your driving history, vehicle type, and personal information.
They sell pay-per-mile car insurance specifically designed for those who don’t do a lot of driving.
This unique style of insurance can save drivers some money, especially those who don’t drive too much.
This is one of the primary reasons it is gaining popularity among car owners.
This form of car insurance is not for everyone you must consider all options before deciding on the best car insurance.
SEE ALSO: Easy Way to Get a Cheap Car Insurance as a New Driver
Table of Contents
- How Metromile Works
- The Advantages and Disadvantages of Metromile
- Advantages of Metromile
- Disadvantages of Metromile
- Metromile Car Insurance Costs
- Metromile Comprehensive Coverage
How Metromile Works
Metromile, unlike other insurance companies, applies a unique method known as a usage-based approach to car insurance.
Metromile charges a base fee each month for insurance coverage plus a few cents for each mile driven.
For instance, your car insurance policy has a $50 monthly fee and a $0.08 charge per mile.
If you drive a thousand miles that month, your monthly payment would be $130.
Of course, if you drive less, you pay less. But, if you fail to drive your car at all, you still get to pay the base monthly fee of $50. It’s pretty straightforward.
This car insurance method is particularly beneficial to drivers who don’t drive too often. It allows them to save more.
However, it works both ways; if for some reason, you drive more than usual, your insurance fees are going to go through the roof.
The Advantages and Disadvantages of Metromile
Advantages of Metromile
Below listed are the advantages of Metromile
- This car insurance is surprisingly cheap for driving short distances or if you don’t drive frequently.
- The billing method is easy to understand.
- When using Metromile, the vehicle location and diagnostic services are included for free
Disadvantages of Metromile
Below listed are the disadvantages of Metromile
- Metromile car insurance is only available in eight states in the United States.
- There are unnecessary restrictions on ridesharing
- Metromile car insurance is not compatible with most older vehicles
- The data collection of mileage and location is a huge turn-off
SEE ALSO: How to Sell Insurance Online Using Sales Funnel
Metromile Car Insurance Costs
The cost of Metromile insurance is mainly dependent on how frequently and how long you drive. The less you drive, the less you pay.
The base monthly fee of Metromile also affects how much your insurance policy would eventually cost.
Metromile base fee is calculated by using several factors, such as your age, your vehicle type, your driving record, and finally, your credit history. The base fee is due each month, whether driven or not.
Another vital point to note is that a history of bad driving will impact your expensive coverage in a negative way, regardless of your choice of the insurance company.
Metromile Comprehensive Coverage
Metromile, like most insurers, offers similar basic car insurance coverages.
These coverages include the usual liability coverage, personal injury protection, uninsured motorist coverage, medical payments coverage, and collision and comprehensive coverage.
Liability insurance provides compensation for other parties affected in a car accident if you are at fault.
This form of car insurance is required in several states, and it’s usually divided into two essential parts.
Bodily injury liability coverage and property damage liability coverage.
The bodily injury liability coverage covers the medical care and rehabilitation of the affected party, while the property damage liability coverage pays for vehicle repairs or outright replacement.
The property damage liability coverage also covers damages done to structures, landscaping, et cetera.
Another name for personal injury protection is no-fault insurance.
It pays for the medical bills and lost income for you and your passengers affected by the accident. Unfortunately, this form of insurance is only mandatory in a few states.
The uninsured motorist coverage comes into play when the driver at fault is uninsured.
This insurance method covers you and your passengers’ medical bills and property damage if the driver at fault in the accident is uninsured.
The collision insurance coverage pays for damages caused to your vehicle in an accident.
The other types of damages done to your car such as vandalism, flood, and hail damage are covered by comprehensive insurance. This coverage is not required by law in most states.
SEE ALSO: How to Sell Auto Insurance
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