If you drive far less than the typical commuter, a standard six-month policy prices you as if you didn’t. Pay-per-mile insurance flips that: a small fixed charge plus a charge for every mile. This guide compares the two programs from large national insurers, Allstate Milewise and Nationwide SmartMiles, using what each company publishes on its own site. It covers the pricing structure, what’s tracked, who each is built for, and what neither tells you until you request a quote.
This article is for educational purposes only and is not personalized insurance advice. We are not licensed insurance agents. Programs, rates and availability change and vary by state.
How Pay-Per-Mile Pricing Works
Your premium has two parts:
- A fixed charge that you pay regardless of how much you drive.
- A variable charge that scales with miles driven, reported by a small device that plugs into your car or, in some vehicles, by the car’s own connected systems.
That is different from the behavior-based programs most people think of as “telematics” (Progressive Snapshot, State Farm Drive Safe & Save), where mileage may be one input but the main question is how you drive. If you want that distinction in more depth, see our usage-based insurance explainer and our comparison of behavior-based programs.
The Programs at a Glance
| Nationwide SmartMiles | Allstate Milewise | |
|---|---|---|
| Fixed charge | Base premium | Daily rate |
| Variable charge | Cost per mile, billed on the prior billing cycle’s miles | Per-Mile rate (on Pay-Per-Mile vehicles) |
| Flat option | None described | “Unlimited” vehicles pay only the daily rate, “regardless of miles driven” |
| Daily cap | Only the first 250 miles on a single day count | Not stated on the pages we reviewed |
| How mileage is tracked | Small device, or an eligible connected car (2018+ Toyota models listed) | Plug-in device, plus the Allstate mobile app |
| Does driving behavior matter? | Up to 10% safe-driving discount at first renewal, which “could be zero”; not available in California | Allstate’s FAQ advises avoiding speeds over 80 mph, sudden braking and 11 PM-4 AM driving for better rates |
| Where it’s not available | AK, HI, LA, MI, NC, NY, OK; AZ, OH, OR and NE use different program criteria | States not listed on the pages we reviewed; Allstate says rates “may fluctuate up or down” in certain states |
Sources: Nationwide SmartMiles, Allstate Milewise, Allstate Milewise FAQs.
Nationwide SmartMiles
Nationwide’s monthly bill equals the base premium plus the cost per mile multiplied by the miles you drove in the prior billing cycle, typically the prior month. The company says both numbers “do not vary throughout the policy term unless you make changes to your policy,” so month-to-month swings come from your mileage rather than a rate change. A footnote adds that your estimated premium “is subject to change based upon final rated mileage during the mileage period and policy changes.”
Details worth knowing before you apply:
- The road-trip exception. Only the first 250 miles on a single day count toward your bill, so one long drive can’t blow up the month.
- The safe-driving discount isn’t automatic. Nationwide describes a discount of up to 10% applied at your first renewal, based on the first term’s data. It says the discount could be zero.
- Vehicle limits. Most vehicles made after 1996 are eligible, but Nationwide warns that some hybrids, EVs and diesels may not work with the device.
- Coverage is the same. Nationwide says coverage matches a traditional Nationwide auto policy, so you’re changing how you pay, not what you’re protected against.
- Availability. It isn’t offered in Alaska, Hawaii, Louisiana, Michigan, North Carolina, New York or Oklahoma.
Nationwide’s page does not publish a dollar figure for the base premium or the per-mile rate; those depend on your profile.
Allstate Milewise
Milewise gives you a choice per vehicle. Pay-Per-Mile vehicles carry “a low daily rate and Per-Mile rate when you drive.” Unlimited vehicles are “only assessed a Daily Rate, regardless of miles driven,” and you can combine both types across the cars on one policy. Setup starts with a plug-in device that records mileage, and you monitor driving and spending in the Allstate app.
What Allstate’s FAQ tells us:
- Rates are set at sign-up as a daily rate and a per-mile rate “based on factors such as driver age, vehicle type, and driver history.”
- Behavior can matter. Unlike Nationwide’s mileage-only framing, Allstate’s FAQ advises avoiding “speeds over 80 mph,” sudden braking and late-night driving from 11 PM to 4 AM for better rates. The page doesn’t explain how much, or whether the effect varies by state.
- The device records every driver. Allstate says it “will continue to capture driving information for the vehicle, regardless of the driver,” which matters if several people use the car.
- If mileage isn’t received, a “Mileage Assessment Charge (40 miles per day)” applies, so an unplugged or malfunctioning device isn’t free.
The Milewise pages we reviewed don’t list a daily mileage cap, the states where it’s sold, or actual rates.
What Neither Company Publishes
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Actual rates. Both pages omit the dollar amounts, so any “you’ll save X%” claim you read elsewhere is either a marketing example or a third party’s estimate. We don’t repeat third-party savings figures here because we couldn’t tie them to a primary source.
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Your break-even point. It depends on your fixed charge, per-mile rate and annual mileage. You can estimate it yourself from two quotes:
Pay-per-mile cost = (fixed charge × days or months) + (per-mile rate × miles driven)
Compare that against a standard policy’s annual premium. The lower your mileage, the more weight the fixed charge carries; the higher your mileage, the faster the per-mile rate erases any head start.
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Data practices in full. Nationwide’s and Allstate’s program pages say little about retention and sharing. Read the privacy terms before you plug in a device.
How to Decide
- Count your real mileage. Check your last two odometer readings or service records rather than guessing. Remote workers, retirees and households with a rarely driven second car are the profiles both insurers name.
- Get two quotes for the same coverage — one pay-per-mile, one standard — from the same insurer, then from at least one other. A cheaper base rate elsewhere can beat a mileage discount here; start with how the big four compare.
- Check state availability first. SmartMiles is excluded in seven states and uses different criteria in four more.
- Plan for the unusual month. SmartMiles’ 250-mile daily cap helps with road trips; if you don’t see a cap in writing from Allstate, ask.
- Read the data terms and who else drives the car before enabling a tracker.
Frequently Asked Questions
How does pay-per-mile car insurance work? You pay a fixed charge (Nationwide’s base premium or Allstate’s daily rate) plus a charge for each mile driven, as reported by a device or connected car.
Who is pay-per-mile insurance for? Low-mileage drivers. Nationwide says “If you drive less than the average driver, SmartMiles could save you money.”
Can my driving habits still change a Milewise price? Allstate’s FAQ says rates are set at sign-up from driver age, vehicle type and driver history, and advises avoiding speeds over 80 mph, sudden braking and late-night driving for better rates. Confirm how it works in your state.
Is there a daily cap on SmartMiles charges? Yes: only the first 250 miles on a single day count. The Allstate pages we reviewed don’t state a cap.