According to the Federal Highway Administration, the average U.S. driver puts almost 13,500 miles on their vehicle each year. If you drive fewer miles than most people, Allstate Milewise® could help you to save money on car insurance costs.
We at the Guides Auto Team will walk you through Allstate Milewise, a car insurance plan that provides discounts based on the number of miles you drive. We’ll take an in-depth look at what the program is, how it works and whether it’s worth your consideration. We’ll also recommend other providers that offer some of the best car insurance plans on the market.
Allstate Milewise is a pay-per-mile insurance plan that bases costs on the quantity of miles you drive. It’s a great choice for low-mileage drivers, so you could benefit from Allstate Milewise if you’re a stay-at-home parent, someone who works from home, a retiree or a commuter who drives less than the average person.
With Allstate Milewise, you pay a daily base rate plus a per-mile rate whenever you drive. You also get the same coverage and claims support that comes with a traditional auto insurance policy from Allstate. In addition, Milewise accounts earn points through Allstate RewardsⓇ, a program that allows you to redeem those points for savings on gift cards, local offers and merchandise. Personal Milewise information can be accessed through the Allstate mobile app.
Here are some pros and cons associated with choosing an Allstate Milewise insurance plan:
Allstate Drivewise is an optional telematics insurance program that rewards safe drivers with car insurance discounts. Savings are calculated based on driving speeds, hard braking patterns and your frequency of late-night trips. Those who practice safe driving habits while using Allstate Drivewise could save up to 40% or more versus a traditional auto policy.
Drivewise and Milewise differ in one key way — Drivewise calculates your discount based on safe driving habits, while Milewise bases costs on the number of miles driven. However, your Milewise rates may fluctuate in certain states based on driving behavior, much like Drivewise.
Telematics insurance, also known as usage-based insurance or pay-as-you-drive insurance, is a program that offers discounts based on driving habits and how much you drive daily. These programs use mobile apps and plug-in devices to measure key driving statistics, such as when you drive and how far you drive. Usage-based insurance programs also keep track of your driving habits, such as how fast you drive and how often you slam on the brakes.
If you choose a program that measures your driving habits through a mobile app, it will most likely record your phone usage while driving. Plug-in devices can’t do the same. Keep in mind that telematics programs will raise your auto insurance rates if they find that you don’t practice safe driving habits. Allstate insurance agents can explain more about how the program works.
The Allstate Milewise program offers a simple way for policyholders to save on car insurance. You have the choice of a pay-per-mile insurance option, an unlimited, daily-rate option or a combination of both. All Milewise plans offer the same billing process.
After covering an initial down payment, your account funds will be automatically refilled via a credit card on file when you reach the minimum balance. Additionally, you can make a payment through the Milewise website or by using the Allstate mobile app.
If you choose pay-per-mile, you’ll get charged a daily amount plus a per-mile rate whenever you drive. Your rates are based on factors such as vehicle type, age and driving record. Note that your rates may fluctuate based on your driving habits if you live in one of these states:
If you live in one of these locations, you can secure better rates by driving under 80 mph, braking gently and driving during less risky times of day.
If you choose Milewise Unlimited, you’ll be charged a flat daily rate regardless of how many miles you drive. The unlimited plan could be a good option if you opt into Milewise for a high-mileage vehicle.
If you decide to take a road trip and drive more miles than usual, Allstate Milewise caps the number of miles you’ll pay for each day. Once you’ve reached the mileage limit, the remaining miles won’t be charged the per-mile rate.
You can save additional money on days when you don’t drive at all. You’ll only pay the set daily Milewise rate when you don’t drive, no matter how many days in a row that might cover.
Once your policy is effective, your Milewise device will ship out to you with a tracking number. When you receive the device, plug it into your car’s diagnostic port, which is typically located under the steering column. If you need additional assistance with installation, Allstate’s online locator guide can help. You’ll receive a notification via the Allstate car insurance app when the device has been properly connected and is ready for use.
Even if you opt into the unlimited Milewise plan, drivers are asked to plug in the device. This enables Allstate to provide you with driving feedback, account information and points that go toward Allstate Rewards.
If you choose the pay-per-mile auto insurance plan with Milewise, your device must be correctly installed to accurately capture miles driven and calculate your daily costs. If your device fails to report mileage information to the Allstate app, a default mileage use rate of 40 miles per day will be charged to your account. It’s important to quickly resolve issues you have with your device to avoid being charged this default rate every day.
Quadrant Information Services puts the average cost for a full-coverage policy from Allstate at $2,088 per year and a minimum-coverage policy at $725 per year. These prices are higher than the national averages of $1,730 per year for full coverage and $635 per year for minimum coverage. These estimates reflect the profile of a 35-year-old driver with a clean driving record and good credit history.
Our review team reached out to Allstate for a comment on the premiums typically paid by customers and received the following response:
“There isn’t one single price when it comes to auto insurance: each customer’s policy and price is personalized to them. Allstate customers can also find significant savings compared to an average price when they qualify for discounts like bundling and sign up for telematics products like Drivewise and Milewise. For instance, Milewise lets customers pay a daily base rate plus a per-mile rate when they drive, allowing low-mileage drivers to save, on average, 50% over traditional insurance policies.”
While Allstate auto insurance often comes with higher-than-average rates, factors such as age, driving history, credit score and miles driven will influence how much you’ll actually pay. If you have a clean driving record and spend little time on the road, you may find that Allstate Milewise offers cheap car insurance rates compared to other insurers.
If you drive less than the average person and want to save money on car insurance, Allstate Milewise could be a good option. You can choose between either a pay-per-mile or an unlimited plan based on your distance driven, and the plug-in device is simple to install. However, this insurance plan is only offered in 21 states and you’ll be charged a default rate of 40 miles per day if your device isn’t accurately capturing mileage.
While pay-per-mile car insurance coverage can be an attractive option to save money, it’s wise to compare car insurance quotes from various providers to make sure you’re getting the best deal for your lifestyle. We recommend also requesting car insurance quotes from top-ranking auto insurance companies like State Farm and Geico.
We chose State Farm as our Editor’s Choice due to its wide variety of coverage options, strong industry reputation and low overall costs. It offers insurance add-ons such as rental car reimbursement and roadside assistance, as well as a telematics savings program called Drive Safe & Save™ that can save you up to 30% on your car insurance policy.
Read more: State Farm insurance review
Our industry-wide review found Geico to be a competitive choice for most drivers. The company offers low insurance premiums for a wide variety of driver profiles, as well as excellent customer service in comparison to other insurers. Policyholders are eligible for various car insurance discounts, such as multi-vehicle, good student, federal employee and military.
Read more: Geico insurance review
If you’re ready to begin a car insurance comparison, we have reviews that look into State Farm vs. Geico and Allstate vs. Geico.
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
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*Disclaimer: Data accurate at time of publication.
