Glossary term
Annual mileage
Annual mileage: Miles driven per year, a rating factor on every policy and the basis of pay-per-mile pricing. The national average is roughly 12,000–13,000.
Where this term matters
Guides and entries on this site that use the term.
Guide
Who Saves With Pay-As-You-Go Insurance
The driver profiles that benefit from pay-as-you-go pricing—remote workers, retirees, second cars, city dwellers, students—and the ones who should avoid it.
Guide
Car Insurance for Low-Mileage Drivers
How low-mileage drivers can pay less: pay-per-mile, conventional low-mileage discounts, telematics, and how to estimate and prove your annual mileage.
Guide
How to Compare Pay-As-You-Go Insurance Quotes
A method for comparing pay-per-mile, telematics and conventional quotes on equal terms: realistic mileage, identical coverage, daily caps, surcharge rules and data terms.
Entry
How to Calculate Your Break-Even Mileage for Pay-Per-Mile Car Insurance
Learn how to calculate your break-even mileage to determine if pay-per-mile car insurance will save you money compared to a standard fixed-rate policy.
Entry
Is Pay-Per-Mile Car Insurance Worth It for Seniors and Retirees?
Learn how pay-per-mile car insurance works for retirees and senior drivers. See how reduced annual miles, base rates, and state rules affect your savings.