If you drive less than average the person, then your car insurance should cost less. That's the philosophy behind Metromile, a new insurance company that bases your rates on how far you drive. We put it to the test to see how it works, but more importantly, how much money you can save.
Stephanie is our fabulous 5 p.m. producer and has worked here at NBC12 for almost five years. She used to live in Mechanicsville.
“It was a 25-minute drive at midnight, which wasn't fun for anyone, so I moved closer because this is about two miles away from work," Stephanie said as she drove.
Her daily commute is only four miles a day, and her other ventures during the week don't take her very far.
She says her rate is “just under a hundred a month for car insurance.”
Stephanie was the perfect candidate to try Metromile, a car insurance company that calculates what you owe using the actual miles you drive.
“Instead of one flat rate for your auto insurance, you pay for what you use. Which ends up saving drivers about 40 percent on average,” Metromile CEO Dan Preston said.
To test it out, Stephanie signed up online, giving them basic information about her and the vehicle.
“Then we would give you a base rate, which is typically about 30 percent of what you've paid before. It is about $20 on average,” Preston said.
Stephanie plugged the device into the car's diagnostic port, which tells Metromile how many miles she's driven. Multiply those miles that you've driven by the per mile rate, add it to the base price and you've got your monthly total. “I think customers think it's a lot more fair,” Preston said.
She drove as she normally would for a month. After that month, we had enough data to see if Metromile could save her some cash. Last month, Stephanie clocked 334 miles. Her base rate is $31.61, and she's quoted a per mile rate of 6.5 cents. Her total this month is less than $54.
"That's cutting my insurance payments in half," Stephanie said. "The provider I use is generally pretty affordable, but this is a pretty great cost.”
Metromile said that if you drive less than 12,000 miles a year, you will save money using their system. The plug-in device can also diagnose issues your car may be having. You can get a free quote online to see what you'd be saving by clicking here.
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