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Metromile Insurance Review: Is it Worth it in 2023?

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Have you heard of gap insurance, but don’t know where to get it?

While there are plenty of gap insurance providers, many are oftentimes expensive and costly.

So what is a driver to do?

That’s where Metromile comes in, with cheap and affordable insurance.

This Metromile review will discuss auto insurance benefits based on mileage. With comprehensive coverage that caters to customer satisfaction, we will see what makes Metromile shareholders so confident in this particular car insurance company.

What is Metromile Auto Insurance?

Metromile car insurance is a pay-per-mile coverage option that allows customers to save money and only pay for needed services.

This usage-based insurance coverage benefits low-mileage drivers who overpay for car insurance.

Metromile, Inc. was founded in 2011 as a private company.

It went public in 2021, entering Wall Street as MILE.

While coverage is not available in every state, potential customers can add themselves to a waitlist and receive a notification when Metromile becomes available in their state.

Currently, Metromile is available in:

  • Arizona
  • California
  • Illinois
  • New Jersey
  • Oregon
  • Pennsylvania
  • Virginia
  • Washington

While the Dow Jones projects the net income and total equity of the company in the red, the total assets of the insurance carrier are cast in the green.

This bodes well for the recent deal announced by the CEO of Lemonade Car, Daniel Schreiber, whose company is acquiring the Metromile car insurance company.

Metromile Insurance Review: Pros & Cons For 2023

Advantages of Metromile

Metromile CEO Dan Preston says that one of the most significant advantages of Metromile car insurance is that it doesn’t penalize customers for trivial issues.

Instead, the coverage is entirely based on mileage.

The other advantages of Metromile include:

  • Efficiency: Coverage based on mileage means that customers won’t pay for what they don’t use. This improves customer service and allows Metromile to present exciting coverage options for each driver.
  • Base rate: Not only is Metromile based on need, but the company also provides customers with a base rate that does not change. Instead of arbitrary fees, customers plug Metromile’s Pulse device into their vehicle and receive accurate and updated information on their mileage and cost.
  • Pulse: Using artificial intelligence, the Metromile Pulse device is another of the most significant advantages to Metromile customers. The small, free wireless device provides all the necessary information for customers to know exactly how much they’re driving and how much coverage will cost.
  • Convenient: Since Metromile operates almost entirely online, it’s easy for customers to manage their accounts from the comfort of their own homes with automated claims, price updates, and so much more.
  • Cost-effective: Metromile’s most significant advantage is a cheap car insurance option for low-mileage drivers.

Disadvantages of Metromile

While a valuable option for drivers who aren’t on the road very often, a few disadvantages ought to be included in a Metromile car insurance review.

  • Availability: While Metromile is easily accessible online, its services are not available in every state across the United States. Even big states like Texas and New York have yet to receive access to Metromile.
  • Commuters: A pay-per-mile coverage option looks good for Metromile stockholders and drivers who aren’t often on the road. However, individuals who rack up the mileage on their vehicle may find it too expensive in the long run.
  • Complaints: While many customers find Metromile easy to use and fun to work with, there are several complaints about the company. Especially compared to companies of similar size, the number of complaints might be a little high.
  • Customer service: Many customers find the customer service at Metromile to be less than satisfactory.
  • Inconsistency: For drivers who prefer to pay the same amount every month, the varying pay structure of Metromile might be confusing or frustrating.

What does Metromile Cost?

Metromile is an affordable option for drivers who put less than 10,000 miles on their cars every year.

Because it is pay-per-mile auto insurance, customers can look forward to a personalized auto insurance policy with the Metromile enterprise.

The cost of Metromile exists in two segments:

  • Base monthly rate
  • Cost per mile driven

The base monthly rate stays consistent throughout the life of the policy.

This helps ease investor relations and quiet the minds of Metromile stockholders who might be concerned about the low cost of auto insurance.

The cost per mile driven is the insurance carrier’s variable amount based on mileage. With each mile, the price for the monthly rate goes up.

This feature is one of the biggest positives for customers who don’t drive a lot.

For people who commute long distances every day, this feature creates one of the most significant issues with Metromile.

Frequently Asked Questions

The National Association of Insurance Commissioners concludes that a pay-per-mile insurance program is innovative to create options and save money for drivers.

Here are some frequently asked questions when discussing options like Metromile auto insurance.

Is Metromile cost-effective?

Metromile is cost-effective for a certain kind of driver. Anyone who drives less than 10,000 miles per year will find Metromile extremely affordable.

Even with the base monthly rate, the overall cost of the insurance will be less than other providers. However, for people who drive long miles regularly, Metromile is not a cost-effective option.

It’s based on a common-sense principle that the more you go, the more you pay. So commuters who drive more than 10,000 miles a year are likely better off with a different insurance carrier.  

What is the base rate for Metromile?

The base rate for Metromile varies depending on the type of coverage plan a customer purchases.

However, the base rates for an auto insurance plan start at $29 per month. The usage rate will vary depending on how much a customer drives.

How does Metromile work?

Metromile works on the basic idea that the less you drive, the less you ought to pay for car insurance.

Metromile starts with a base rate for each month. This amount stays the same based on the coverage plan you purchased.

The usage rate comes next. By plugging the company’s Pulse technology into your vehicle and downloading the corresponding app, you can easily track your mileage and how much you’ll pay based on miles driven.

What’s included in Metromile full coverage?

Full coverage policies offered by Metromile include basic comprehensive plans that are similar by nature to other auto insurance companies.

A driver is protected against damage repairs for any damage caused outside of a collision with full coverage. Collision coverage is typically sold separately but in conjunction with full coverage.

Is Metromile a good investment?

Metromile is a good investment for drivers who often aren’t on the road. If you rack up less than 10,000 miles each year, you’ll find Metromile to be an extremely affordable option.

They’re also highly dependable and growing as a company, which means that better opportunities could be right around the corner.

Final Thoughts

Metromile auto insurance is a unique pay-per-mile insurance option that allows drivers to save money if they aren’t frequently behind the wheel.

Metromile is currently in negotiations with Lemonade Car to discuss purchase options.

Once the purchase takes place, the auto insurance company could provide even more coverage options and savings opportunities for its customers.

Although high-mileage drivers should not consider Metromile a cost-effective option, low-mileage drivers will likely benefit from a plan with Metromile.

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