Glossary term
Per-mile rate
Per-mile rate: The charge for each mile driven on a pay-per-mile policy, typically 3–12 cents, subject to a daily cap.
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
Daily Mileage Caps on Pay-Per-Mile Insurance
How daily caps work on pay-per-mile policies, why they exist, typical cap levels, and how road trips are billed.
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.