Compare Prepaid Car Insurance: Rates, Discounts, & Requirements [2024]

Prepaid car insurance is an interesting idea that is becoming more popular. One of the most interesting companies that offer prepaid insurance sells its car insurance policies by the mile. This form of insurance coverage offers people that do not drive that much a great way to save money on car insurance by letting them buy exactly as much coverage as they need.

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The Company that Offers Pay by the Mile Car Insurance

Currently, there is mainly one company that is offering this innovative form of prepaid car insurance. This company is MileMeter Insurance located in Texas.

The reason this company is only operating in Texas is because Texas is currently the only state that has passed a law allowing car insurance to be sold per mile.

This law was passed in 2001 and in the past decade, MileMeter Insurance has seen significant growth.

The popularity of car insurance by the mile combined with having a significant amount of capital and reinsurance has made MileMeter a great success.

Another reason MileMeter is so successful is that MileMeter does not require the driver to have a GPS or other tracking device in their car to determine how many miles have been driven like with other usage-based car insurance.

MileMeter also does not require a credit check or Social Security number to get this type of insurance.

MileMeter prides itself on operating differently than more conventional auto insurance providers.

Unlike many car insurance companies MileMeter does not charge more for one policyholder than another based on gender or age.

MileMeter is hoping that other states pass similar laws to Texas so the company can offer this type of insurance in other states.

On the company website, there is a special page to submit your information to be notified if and when MileMeter is available in your state.

This page also gives tips on how to bring a prepaid auto insurance policy to the attention of other people in their state.

How Pay-by-the-Mile Car Insurance Works

With MileMeter Insurance, a policyholder has coverage for six months at a time.

With a traditional car insurance policy the policyholder would pay for individual forms of coverage; with MileMeter they pay for a certain amount of miles.

This system works great for people that do not typically drive a lot such as:

• People who are in college
• People that work from home
• Those who are retired and do not have a daily commute
• People that live in an area that has travel options like walking and public transportation

The policyholder can buy between four thousand and six thousand miles for the six-month policy period. People should also consider why they drive and whether this affects their mileage. What is pleasure driving for car insurance? This is often a scenario where an insurance customer only needs limited insurance because they only drive for leisure instead of for commuting.

The policyholder can purchase extra miles at any period of time, which comes in handy if something unexpected comes up that requires a lot of driving or if they are planning a vacation.

If a policyholder does not use all of their purchased miles in the six-month period, the remaining miles will be credited to the renewed policy for the next six months, less 1,000 miles.

When someone first signs up for MileMeter they must submit a photo of their car’s odometer to determine the car’s initial mileage.

Throughout the policy term and when the policy is renewed the company will request another photo of the odometer to make sure that the number of miles that have been driven over the policy period matches up with the reported total.

As a way to make this process simpler, MileMeter allows these photos to be uploaded via the policyholder section of its website. Taking photos has long been an important part of filing a car insurance claim, but it’s also important in obtaining pay-per-mile car insurance.

The Long-Term Benefits of Pay-by-the-Mile Insurance

Pay-by-the-mile car insurance causes policyholders to always be aware of just how much they are driving.

As a result of this awareness, the policyholder might decide to walk or take a bicycle when traveling short distances, whereas before they would have driven their car.

So not only does this type of insurance offer the policyholder the opportunity to save money, but the opportunity to help save the environment as well.

To easily compare car insurance rates today just type your ZIP in the box above now!