Metromile is a pay-per-mile auto insurer built around drivers who do not put many miles on their cars, charging a low monthly base rate plus a few cents for each mile driven. It was acquired by Lemonade in 2022, which has since retired the Metromile brand for new customers, so here is an independent look at how the Metromile approach works, its estimated cost, and how it compares in 2026.
Metromile was founded in 2011 in Redwood City, California, later moving its headquarters to San Francisco, and pioneered pay-per-mile auto insurance in the U.S. Instead of a flat premium, drivers pay a low monthly base rate plus a per-mile charge, with miles tracked by the Metromile Pulse, a small wireless device that plugs into the car's OBD-II diagnostic port. The model is aimed at low-mileage drivers, who tend to overpay under traditional flat-rate pricing. Lemonade completed its acquisition of Metromile in July 2022 and has folded its technology and telematics data into Lemonade Car. As of 2026 the Metromile brand is effectively retired for new business: existing policies are still serviced, but new pay-per-mile coverage is sold under the Lemonade name in a limited set of states.
Independent market estimates based on NAIC rate filings and state insurance department data. Not provided by or endorsed by Metromile. Actual rates vary by state, ZIP, and individual profile.
| Driver profile | Est. annual premium | vs. market avg. | Notes |
|---|---|---|---|
| Clean record, 30–45 | ~$960/yr | Below avg. for low mileage | Effective cost for a typical low-mileage driver |
| Single accident (3 yrs) | ~$1,420/yr | Near avg. | Per-mile base still applies |
| DUI on record | ~$2,300/yr | Near avg. | May fall outside eligibility |
| Young driver (18–24) | ~$1,880/yr | Below avg. if low mileage | Savings depend on miles driven |
| Senior driver (65+) | ~$880/yr | Below avg. | Often strong for low-mileage retirees |
| Lower credit tier | ~$1,540/yr | Near avg. | Credit scoring applies where legal |
ⓘ Source: NAIC filings and state regulatory data. Not quotes from Metromile. Verify pricing directly with the carrier or a licensed agent.
Metromile's core idea is sound: if you drive well below the national average, a low base rate plus a few cents per mile can cost far less than a traditional flat premium, and its daily per-mile cap keeps the occasional road trip from blowing up the bill. That makes it a strong fit for remote workers, city dwellers, retirees, and second-car owners. The complication is ownership and availability. Lemonade acquired Metromile in 2022 and has folded its technology into Lemonade Car, retiring the standalone Metromile brand for new customers. New pay-per-mile coverage now runs through Lemonade and is available in only a handful of states, so many drivers who want this model cannot buy it where they live. The Pulse device and mileage tracking also mean handing over driving data, which not everyone is comfortable with. The pay-per-mile concept is compelling, but whether you can access it, and whether it beats a conventional policy, depends entirely on your mileage and your state.
Metromile helped popularize pay-per-mile insurance, and for genuinely low-mileage drivers the model can undercut traditional flat-rate premiums. But with the brand now folded into Lemonade Car and available in only a limited set of states, access is the real question. Comparing a pay-per-mile quote against conventional carriers in your area is the fastest way to see whether it actually saves you money for your profile.
Disclaimer: RateWire is an independent lead generation and comparison service and is not affiliated with, authorized by, endorsed by, or in any way officially connected to Metromile. All carrier names and trademarks are the property of their respective owners used solely for informational and comparison purposes. Rate figures are independent market estimates from publicly available NAIC and state regulatory data — not quotes from Metromile. By submitting your ZIP code, you may be connected with licensed insurance agents or carriers who will provide actual quotes based on your individual profile. Always verify coverage terms and pricing directly with the carrier or a licensed agent before purchasing.