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Allstate Milewise Review

Allstate Milewise is a type of car insurance policy that charges you based on how many miles you drive. With Milewise, you pay a daily rate plus a per-mile rate for each mile you drive instead of a fixed cost. A pay-per-mile car insurance policy is ideal for stay-at-home parents, people who work or study from home, retirees and other individuals with lower annual mileage.

Keep reading to see whether Allstate Milewise is the right type of car insurance for you.

Allstate Milewise Overview

Availability

Arizona, District of Columbia, Delaware, Florida, Idaho, Illinois, Indiana, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, Virginia, Washington, West Virginia, Wisconsin

Coverage

  • Bodily injury liability

  • Property damage liability

  • Uninsured/underinsured motorist

  • Medical payments

  • Personal injury protection

  • Collision

  • Comprehensive

Roadside assistance

Yes

Discounts

  • New car

  • Bundle with home or renters

  • Smart student

  • Security features

  • Early signing

  • Automatic payments

  • Paperless

  • Pay your policy in full

  • Safe driver

 

Good for:

Bad for:

  • Safe drivers seeking affordable premiums that reflect their actual mileage.

  • Moderate- to high-mileage drivers

  • People who work from home, take online college courses, retirees and other low-mileage drivers. Drivers who support the donation of unused premiums to charity.

  • Drivers who are uncomfortable with telematics technology collecting data about their driving behaviors.

What Is Allstate's Milewise Program?

Milewise by Allstate is a pay-per-mile auto insurance policy, with all  the same coverage options as a traditional Allstate auto insurance policy. Instead of a fixed recurring cost, Milewise customers pay a daily rate plus a per-mile rate.

With Milewise, you pay a daily rate plus a per-mile rate for each mile you drive instead of a fixed cost.

For example, say your mileage rate is $0.05 per mile driven and one month, you drive 1,000 miles and the second month, you drive only 500 miles. Considering only the per-mile rate, you would pay $50 for the first period and only $25 for the second policy period. Note that you will have a base daily rate too, say $60, which is determined based on the same factors used to determine most car insurance rates across the industry: your driving record, age, your vehicle and location as well as other factors. So, in total, you would pay $110 for period 1 and $185 for period two.

How Allstate Milewise Works

Allstate Milewise uses telematics technology to calculate the number of miles you drive. Milewise customers receive a device that plugs into your vehicle's OBD port. The Allstate Milewise device is small enough to fit in your hand and the OBD port is typically located under the dash on the driver's side. You can view your mileage and other data collected by downloading the Allstate mobile app.

Allstate Milewise functions similarly to a prepaid account. Each time you drive your car, the cost of the trip is deducted from your account within a few hours. When your account runs out of funds, it automatically debits the credit or debit card on file.

As a pay-per-mile insurance policy, you are charged a daily rate plus a per-mile rate. When determining your daily rate, Allstate considers factors similar to a regular policy, including your age, vehicle type and driving record. Your per-mile rate is calculated by the number of miles you drive that day.

As an example, let's say you have the following rates:

  • Daily rate: $2.00

  • Per-mile rate: $0.06

On day one, you drive 10 miles. Your daily rate is $2 and your mile cost is $0.60 ($0.06 x 10 miles). The cost of that day would total $2.60.

Now, let's say you drive 10 miles every day in January. Your total for January would be $63.86 ($2.06 x 31 days).

If you don't drive your vehicle at all, you will not be charged a per-mile rate for that day. However, the daily base rate would still apply whether you drive your vehicle or not.

Long trips and days you don't drive

Allstate caps the number of miles you can be charged for in a single day. The mileage cap is either 150 miles or 250 miles depending on your state. The mileage cap in New Jersey, for example, is 150 miles — if you drive 172 miles, then you will be charged only for 150 of the 172 miles. This can be useful for mitigating the mileage cost of a long road trip.

Each time you drive your car, the cost of the trip is deducted from your account within a few hours.

Below are the mileage caps for each of the 21 states where Milewise is available:

Mileage Cap

States

150 miles per day

Illinois, Indiana, New Jersey, Ohio, Oregon

250 miles per day

Arizona, District of Columbia, Delaware, Florida, Idaho, Maryland, Massachusetts, Minnesota, Missouri, Oklahoma, Pennsylvania, South Carolina, Texas, Virginia, Washington, West Virginia, Wisconsin

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What Does Allstate Milewise Cover?

All the coverages available in a traditional Allstate car insurance policy are still available in a Milewise policy, including liability, comprehensive and collision. Just because you drive fewer miles doesn't mean you receive less coverage.

Below, we summarized the car insurance coverages available through Allstate.

Type of Coverage

What It Does

Bodily injury liability

Pays for the medical expenses that the other drivers incur as a result of an accident you caused.

Property damage liability

Pays to repair or replace the other driver's car or personal property when you are responsible for causing the car accident.

Comprehensive

Pays for repairs or replacements to your car for incidents outside a vehicular collision (e.g., fire, theft, vandalization, weather, animal collision).

Collision

Pays to repair or replace your car if it hits another vehicle even if you are responsible for causing the accident.

Medical payments coverage (Medpay)

Pays for your medical expenses (e.g., x-rays, surgeries) when they are incurred as a result of a car accident, regardless of who is at fault.

Personal injury protection (PIP)

Pays for your medical expenses, lost wages and funeral fees as a result of a car accident even if you are responsible for causing it.

Underinsured/uninsured motorist

Pays for medical bills, lost wages and repair costs when the other driver is responsible for causing the car accident but they don't have insurance or don't have enough coverage.

Rental reimbursement

Pays for a rental car if your vehicle is not accessible as a result of a covered car claim.

Roadside assistance

Includes tows, flat tire replacement, locksmith services, jumpstarts and more.

All the coverages available in a traditional Allstate car insurance policy are still available in a Milewise policy.

Can Allstate Milewise Lower My Rates?

If you're a low-mileage driver (typically 10,000 miles or fewer annually), then a pay-per-mile car insurance policy like Allstate Milewise may lower your car insurance rates. Whether it's because you now work remotely or you're retired, the savings from driving fewer miles with an Allstate Milewise policy may be considerable.

What Does Allstate Milewise Monitor?

The Allstate Milewise uses a device that plugs into your vehicle's OBD port to collect data beyond just your mileage. The device can also detect:

  • How fast you're driving

  • Time of day when you're driving

  • Certain driving occurrences (e.g., abrupt braking, excessive acceleration)

  • Location

The data collected from your driving is available to view online and through the Allstate mobile app.

Allstate Milewise vs. Drivewise

Allstate Drivewise is an optional rewards program while Milewise is an actual car insurance policy that provides coverage for covered losses. Below, we highlight key differences between Allstate Drivewise and Milewise:

 

Drivewise

Milewise

Description

An optional rewards program that rewards safe drivers with discounts and other monetary prizes.

An auto insurance policy in which pricing is determined by the number of miles you drive each day.

Product type

Usage-based rewards program.

Insurance policy.

Availability

Available in most states (double-check with your Allstate insurance agent).

Arizona, District of Columbia, Delaware, Florida, Idaho, Illinois, Indiana, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, Virginia, Washington, West Virginia, Wisconsin

Best for

Safe drivers that want a discount on their Allstate auto insurance rates and other rewards.

Low-mileage drivers that want more affordable car insurance.

The savings from driving fewer miles with an Allstate Milewise policy may be considerable.

How To Enroll in Allstate Milewise

If you're not an existing Allstate customer, you can receive a quote online through the Allstate website. Allstate will request the following information:

  • Personal information (e.g., name, date of birth, address)

  • Vehicle year, make and model

If you're an existing Allstate policyholder, you can speak with your insurance agent for more information about switching to a Milewise policy.

Allstate Milewise Pros and Cons

Pros

Cons

Ideal for low-mileage drivers

Unavailable in most states

Straightforward pricing

Not suitable for moderate- to high-mileage drivers

Rewards system

 

Pros explained

  • Ideal for low-mileage drivers: Drivers who spend less time on the road can and should have an auto insurance premium that reflects that — the less time on the road, the less chance of getting into an accident, after all. Allstate provides an alternative insurance policy that can save you money if you're a low-mileage driver.

  • Straightforward pricing: The pricing structure is straightforward and transparent. You're charged a daily rate and then an additional rate for each mile you drive that day. Mileage is tracked by the Milewise device and you can review the data yourself either online or through the mobile application.

  • Earn points: Allstate Milewise collects data about your driving behaviors and you can earn points if the data exhibits good and safe driving techniques. These points can be redeemed through the Allstate Rewards program on gift cards, local offers, merchandise and more.

Cons explained

  • Unavailable in most states: Allstate Milewise serves only 21 states, leaving the pay-per-mile policy unavailable to more than half the states. However, Allstate has been expanding rapidly to more states in recent years and may be expanding to others soon.

  • Not suitable for moderate- to high-mileage drivers: If you're a daily commuter who has to drive long distances, Milewise (or any pay-per-mile car insurance policy) would be a poor fit for your lifestyle. The miles can quickly add up to outpace the cost of a traditional auto policy.

Is Allstate Milewise worth it?

If you're a low mileage driver, then Allstate Milewise auto insurance is definitely worth considering. Driving less already puts you at a lower risk of filing a car insurance claim than somebody who drives a lot. It would make sense then that a low-mileage driver should pay less in car insurance premiums to reflect their lower risk exposure.

Allstate Milewise FAQs

Does Allstate Milewise track driving habits?

Yes, Allstate Milewise uses a device that plugs into your vehicle's OBD port to detect your mileage, location, speed and more. The data collected is viewable through your Allstate online account or by downloading the mobile app.

What is the difference between Milewise and Drivewise?

While both Allstate products collect data about your driving, Milewise is a car insurance policy based on mileage while Drivewise is a rewards program for safe driving. With Milewise, policyholders pay less if they drive fewer miles. Drivewise is an optional program that drivers can join to earn points to spend on discounts and other prizes when they exhibit safe driving habits.

Does Allstate Milewise track your speed?

Yes, Allstate is able to detect your speed and may record occurrences where your vehicle exceeds 80 miles per hour.

Find Car Insurance Coverage at a Better Price

Whether you're a low- or high-mileage driver, shopping around is always a good idea. By comparing offers from multiple auto insurance companies, you may be able to find the same level of coverage or more at a better price.

SmartFinancial can help. After answering a few questions, we analyze auto insurance policies from carriers in your area to match you with a plan that matches your needs and budget. Just enter your zip code below to get started.

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