Is Metromile a legitimate company?
Metromile was a legitimate car insurance company. It started in 2011 and Lemonade acquired it in 2022, transitioning Metromile customers to Lemonade. Lemonade is also a legitimate company.
Metromile was an auto insurance company that offered pay-per-mile policies for low-mileage drivers. But Lemonade acquired Metromile in 2022 and has since retired the brand.
Pay-per-mile coverage can help low-mileage drivers save on their premiums and is becoming a popular choice for car insurance. If you’re looking for a Metromile car insurance alternative, here’s what you need to know.
Other options for Metromile customers
Pay-per-mile insurance can offer big savings, so it makes sense that you may be looking for a new option. Specialized companies offer it, and you can also get it through programs from major insurers. If you’re interested in other pay-per-mile options, here are some companies to kick-start your search.
Mile Auto
Similar to Metromile, Mile Auto specializes in pay-per-mile coverage. The company advertises savings of up to 40% if you drive less than 10,000 miles per year.
Metro Mile charges a base rate plus a per-mile rate. Instead of using an in-car device, the insurer requires you to submit periodic odometer photos.
Mile Auto is currently available for drivers in Arizona, Florida, Georgia, Ohio, Oregon, Tennessee, and Texas. It doesn’t offer any discounts and has no mobile app, but it does offer roadside assistance and rental reimbursement add-ons.
Nationwide SmartMiles
If you prefer a larger insurer, Nationwide’s SmartMiles program might be a good fit. Like other pay-per-mile offerings, SmartMiles charges drivers a base rate plus a per-mile rate. Nationwide claims SmartMiles drivers save an average of 25% on coverage and can earn an additional 10% discount for safe driving after their first renewal.
SmartMiles requires an in-car tracking device, or it can connect to certain smart cars. It’s currently available nationwide, except in Alaska, Hawaii, Louisiana, New York, North Carolina, and Oklahoma. Nationwide also offers a mobile app to handle billing and claims tracking.
Allstate Milewise
Allstate’s pay-per-mile program, Milewise, tracks your mileage through an in-car device and mobile app. It charges a per-mile rate as well as a low daily rate; policyholders still pay the daily rate even if they don’t drive that day.
Milewise offers two options: a traditional pay-per-mile policy and Unlimited, in which you pay only the daily rate and not a per-mile rate. Milewise customers are still eligible for all of Allstate’s discounts and coverages.
Milewise is offered in 22 states: Arizona, Delaware, Florida, Idaho, Illinois, Indiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia, Washington, and West Virginia.
How pay-per-mile insurance works
Pay-per-mile insurance matches premiums to driving habits. It charges a monthly base rate plus a per-mile rate — also known as usage-based insurance.1 Like other insurance companies, pay-per-mile insurers may also factor in your gender and age, credit history, vehicle choice, driving record, and prior insurance history to calculate how much you pay.2
When you sign up, you’ll likely receive a device that plugs into your car’s diagnostic port to track your miles. The plug-in device sends trip information to the company using a built-in cell modem, so it doesn’t need to connect to your Bluetooth or smartphone. Some companies require you to send periodic photos of your odometer or download a mobile app to track your behavior.
Every month, you’ll receive a bill that includes your base rate plus the cost of your mileage.
Pay-per-mile car insurance discounts
Auto insurance discounts often play a big role in picking an insurance company. They can get you lower rates, making finding coverage that fits your budget easier.3 Besides Mile Auto, many pay-per-mile programs offer the standard array of auto insurance discounts like safe driving, multi-policy, and claims-free discounts.
If you decide to stay with Lemonade, you’re eligible for 16 different discounts. These include:
Multi-car discount: Cover two or more vehicles under one policy for a lower rate.
Anti-theft device: Install an anti-theft device to quality for savings.
Safe driver discount: Maintaining a clean driving record for three years can reduce your premiums.
Bundling discount: Combine your auto policy with your home insurance for additional savings.
How customers feel about Metromile
Customers had mixed feelings about Metromile. On Trustpilot, the company has a rating of 2 out of 5 stars. Negative reviews mention concerns about the mileage-tracking device, citing issues like trouble connecting the device and over-reporting miles driven. The Clearsurance rating is higher: 4.12 stars out of 5. But the Better Business Bureau (BBB) shows a rating of 2.06 out of 5.
Metromile customer reviews
The following are genuine, verified reviews from Metromile customers, providing insight into the kind of experiences you might expect with the company.
Metromile ratings
Industry ratings offer valuable information about an insurance company’s financial stability, customer satisfaction, and complaints.
These ratings can help you make a good choice when shopping for auto insurance. But Metromile didn’t have an AM Best financial strength rating, and J.D. Power didn’t include the company in its 2024 U.S. Auto Insurance Study.
Pay-per-mile car insurance coverage options
Pay-per-mile programs offer state-minimum car insurance, including liability coverage to protect you if you’re at fault in an accident. Liability insurance pays for damages to other people’s property and their medical expenses.
Additionally, you can secure personal injury protection (PIP) or medical payments (MedPay) coverage, depending on your state. If your car breaks down, roadside assistance services are also available for lockouts, flat tires, and towing.
You can add full coverage to protect your vehicle with comprehensive and collision insurance. Comprehensive insurance safeguards your car against damage from theft, vandalism, and natural disasters. Collision coverage pays to repair or replace your vehicle after an accident.
Metromile insurance FAQs
If you have questions about Metromile, check out the additional information below about the company and its policies.
What happened with Metromile?
In 2022, Lemonade acquired Metromile to build out its car insurance product. Metromile customers were subsequently transitioned to Lemonade car insurance. Currently, Lemonade offers pay-per-mile coverage in Arizona, Washington, and Oregon and regular car insurance in Illinois, Ohio, Tennessee, and Texas.
Is Metromile good at paying claims?
Lemonade, the new owner of Metromile, doesn’t have a rating by AM Best, an independent agency that assesses an insurer’s financial strength and ability to pay claims. J.D. Power didn’t include the company in its 2024 U.S. Auto Insurance Study. But Lemonade has a higher-than-average number of complaints for a company of its size, according to the National Association of Insurance Commissioners (NAIC).
How do you cancel your Metromile insurance policy?
Now that Lemonade owns Metromile, you can cancel your policy through the Lemonade app. You’ll receive a refund for the remaining period you’ve paid for.
Who owns Metromile?
Lemonade, a top insurance company, owns Metromile. Lemonade acquired the company in 2022. Now, Metromile policyholders are Lemonade policyholders and can add additional protections, including homeowners, renters, pet, and life insurance.
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