Glossary term
Base rate (pay-per-mile)
Base rate (pay-per-mile): The fixed monthly portion of a pay-per-mile premium, covering risks that exist while the car is parked and the policy's fixed costs.
Where this term matters
Guides and entries on this site that use the term.
Guide
How Pay-As-You-Go Car Insurance Works
The two models behind pay-as-you-go car insurance—pay-per-mile and behaviour-based telematics—how premiums are calculated, and how the devices and apps collect data.
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.
Entry
Telematics and Pay-Per-Mile Car Insurance for Young Drivers: Pros and Cons
Discover the pros and cons of telematics and pay-per-mile car insurance for young and teen drivers. Learn how driving scores and mileage impact premiums.