Get more bang for your buck with pay-per-mile insurance - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

Get more bang for your buck with pay-per-mile insurance

(Source: KFVS 12) (Source: KFVS 12)
(KFVS) -

You have to have car insurance if you want to legally drive, but if you don't drive that much, a pay-per-mile insurance plan may help you get more bang for your buck.

That's the idea behind Metromile. It's an insurance company that calculates what you owe by the actual miles you drive.

First you sign up online, giving the company basic information about you, the way you drive, and your vehicle.

Then Metromile calculates your base rate, which the company says averages about 30% of what you paid before with traditional car insurance. That's around $20, or so says Metromile.

Then you plug in what's called a "diagnostic port" into your car's onboard diagnostics (OBDII) port.  Most cars from 1996 and later have an OBDII port.

This tells Metromile how far you drive. Multiply those miles driven by the per mile rate, add it to the base price and you've got your monthly total.

Metromile says on average drivers save about 40%.

eSurance from Allstate is also trying out its own pay-per-mile offering, but right now it's only available in Oregon.

Other companies use a similar pay-as-you-drive model, instead of pay-per-mile.

Snapshot from Progressive uses a telematics device to monitor your car, and offers a potentially larger discount for people who drive less and very carefully. Progressive says ultra-cautious low-mileage drivers can save 30 percent or even more, but most drivers save less than that.

Insurance experts say these types of plans only work for people who don't drive very much, and that traditional insurance is best for most drivers.

Download the KFVS News app: iPhone | Android

Copyright 2016 KFVS. All rights reserved

  • Heartland NewsMore>>

  • SIUC nets international award for eclipse events

    SIUC nets international award for eclipse events

    Wednesday, June 20 2018 11:00 PM EDT2018-06-21 03:00:40 GMT
    According to SIU Carbondale, the university events during the eclipse have been recognized with a grand gold award from the Council for Advancement and Support of Education (CASE).  (Source: Brittany Jacob, KFVS)According to SIU Carbondale, the university events during the eclipse have been recognized with a grand gold award from the Council for Advancement and Support of Education (CASE).  (Source: Brittany Jacob, KFVS)

    According to SIU Carbondale, the university events during the eclipse have been recognized with a grand gold award from the Council for Advancement and Support of Education (CASE). 

    According to SIU Carbondale, the university events during the eclipse have been recognized with a grand gold award from the Council for Advancement and Support of Education (CASE). 

  • 22 cyclists bike across America to fight MS and help Carbondale woman

    22 cyclists bike across America to fight MS and help Carbondale woman

    Wednesday, June 20 2018 10:22 PM EDT2018-06-21 02:22:21 GMT
    Cyclist Tony Damiano said doing this kind of work gives him a new perspective on things we take for granted (Source: Brittany Jacob, KFVS)Cyclist Tony Damiano said doing this kind of work gives him a new perspective on things we take for granted (Source: Brittany Jacob, KFVS)

    More than two dozens cyclist are biking from coast to coast to raise money for MS.

    More than two dozens cyclist are biking from coast to coast to raise money for MS.

  • More than $2M of methamphetamine seized in bust

    More than $2M of methamphetamine seized in bust

    Wednesday, June 20 2018 10:10 PM EDT2018-06-21 02:10:41 GMT
    According to the McCracken County Sheriff's Office, 60 pounds of Crystal Methamphetamine was seized in a two day in a multi-agency drug investigation. (Source: McCracken Co. Sheriff Office)According to the McCracken County Sheriff's Office, 60 pounds of Crystal Methamphetamine was seized in a two day in a multi-agency drug investigation. (Source: McCracken Co. Sheriff Office)

    According to the McCracken County Sheriff's Office, 60 pounds of Crystal Methamphetamine was seized in a two day in a multi-agency drug investigation.

    According to the McCracken County Sheriff's Office, 60 pounds of Crystal Methamphetamine was seized in a two day in a multi-agency drug investigation.

Powered by Frankly