Allstate Milewise: A Smarter Way to Save on Car Insurance

If you’re looking for ways to cut down on car insurance costs without sacrificing coverage, Allstate’s Milewise program might be the perfect fit for you. It’s a usage-based insurance option designed for drivers who don’t log a lot of miles. Whether you’re a remote worker, an infrequent driver, or someone who just wants to take control of their insurance payments, Milewise offers a flexible, pay-per-mile plan that could save you money. In this article, we’ll explore what Milewise is, how it works, and whether it’s a good fit for you.

What is Allstate Milewise?

Allstate Milewise is a pay-per-mile insurance program that allows you to pay for insurance based on how much you drive. Unlike traditional auto insurance plans, which charge you a flat rate regardless of your driving habits, Milewise gives you more control over your monthly insurance bill. By offering a base rate plus a per-mile charge, Milewise can be a great option for those who drive less and are looking for ways to lower their premiums.

How Does Milewise Work?

The way Milewise works is pretty simple. When you sign up, Allstate will send you a small device that plugs into your car’s diagnostic port (typically located under the dashboard). This device tracks your driving behavior, such as how many miles you drive, and sends the data back to Allstate. Based on this information, you’ll be billed according to the number of miles you drive each day, plus a small daily base rate that covers you even when your car is parked.

Key Components of the Milewise Program:

• Base Rate: This is a fixed daily charge that covers your car even when you’re not driving.
• Per-Mile Rate: A variable cost that depends on how many miles you drive each day. The fewer miles you drive, the less you pay.
• Cap on Mileage Costs: In some cases, Allstate sets a cap on the amount of mileage you can be charged for each day, so even if you go on a long road trip, you won’t be paying for an excessive number of miles.

The Benefits of Allstate Milewise

1. Cost Savings for Low-Mileage Drivers: The primary benefit of Milewise is the potential for significant cost savings if you don’t drive often. According to Allstate, Milewise can save you money if you drive less than 10,000 miles per year. This is especially appealing for retirees, people who work from home, or city dwellers who rely on public transportation for most of their commuting needs.
2. Customized Pricing: With Milewise, your insurance premium directly reflects your driving habits. If you’re someone who drives infrequently, you’ll see a direct reduction in costs compared to a traditional policy where you pay the same no matter how little you drive.
3. Flexibility and Control: The pay-as-you-go model of Milewise puts the driver in control of how much they spend on insurance. If you’re able to cut down on your driving for a month, you’ll automatically see the savings reflected in your bill.
4. No Long-Term Commitment: With Milewise, there’s no need to lock into long-term insurance contracts. If your driving habits change, you can easily switch back to a traditional policy.
5. Potential for Better Driving Habits: Knowing that your mileage is being tracked could encourage you to become a more mindful driver, cutting down on unnecessary trips and being more efficient with your vehicle usage.

Who Should Consider Allstate Milewise?

Milewise isn’t the perfect fit for everyone, but for certain types of drivers, it can provide significant benefits:

1. Low-Mileage Drivers: If you drive less than 10,000 miles a year, you’ll likely see substantial savings by switching to a pay-per-mile plan like Milewise. People who work from home or use their cars infrequently will especially benefit from this type of program.
2. City Dwellers: If you live in a city and rely primarily on public transportation but still keep a car for occasional trips, Milewise can help you avoid paying high insurance premiums for a vehicle you don’t use often.
3. Retirees: Those who are retired and no longer need to commute regularly can also benefit from lower insurance costs through Milewise. With less time spent on the road, you’ll pay less for coverage.
4. Second Vehicle Owners: If you own a second car that’s only used for weekends or special occasions, Milewise can be a smart way to insure that vehicle without paying full-time rates.

Potential Downsides of Allstate Milewise

While the program offers many benefits, there are also some potential downsides to consider before signing up for Milewise:

1. High Mileage Costs for Frequent Drivers: If you drive long distances regularly, Milewise may not be cost-effective. The more miles you drive, the more you’ll pay, which could end up being more expensive than a traditional flat-rate policy.
2. Limited Availability: As of now, Milewise isn’t available in every state. Make sure to check whether it’s offered in your location before considering it as an option.
3. Device Installation and Data Tracking: The Milewise program requires a telematics device to be installed in your car. Some people may be uncomfortable with the idea of their driving habits being tracked, even though Allstate emphasizes that the data is used solely for calculating premiums and enhancing driver safety.
4. Cap on Savings: While Milewise offers savings for low-mileage drivers, it may not offer as much flexibility for those who occasionally take long trips. Some drivers have expressed frustration that even if they drive less most of the time, a single long trip can drive up their monthly costs.

Comparing Milewise to Other Usage-Based Insurance Programs

Allstate isn’t the only insurer offering pay-per-mile or usage-based insurance. Competitors like Metromile and Nationwide SmartMiles offer similar programs. Here’s how Milewise compares:

• Metromile: Metromile’s program is similar to Milewise but is available in fewer states. It also tends to be more favorable for extremely low-mileage drivers, as its rates can be even lower than Allstate’s.
• Nationwide SmartMiles: Nationwide’s SmartMiles is another pay-per-mile option. The primary difference is that SmartMiles offers a maximum cap on daily mileage charges, so if you drive long distances in a single day, you won’t be charged exorbitantly for it.

Both Metromile and SmartMiles offer competitive alternatives to Milewise, but availability and pricing vary, so it’s worth shopping around before committing.

Is Allstate Milewise Right for You?

Allstate Milewise is an excellent option for drivers who want more control over their insurance costs, particularly those who drive less than 10,000 miles per year. The flexibility of pay-per-mile pricing makes it appealing for low-mileage drivers, retirees, and urban dwellers who want to save money without compromising coverage. However, it may not be the best fit for frequent drivers, road trippers, or anyone uncomfortable with having their driving tracked by a telematics device.

Before deciding, it’s important to evaluate your driving habits and compare the costs of traditional insurance with the Milewise program. If you drive occasionally and are looking for ways to lower your insurance premiums, Milewise could be the smart solution you’ve been waiting for.

Conclusion

In today’s world, flexibility is key, and Allstate Milewise offers a solution for drivers who want to align their insurance costs with their driving habits. By switching to pay-per-mile insurance, you not only save money but also gain control over how much you spend each month. If you’re a low-mileage driver or someone who doesn’t need to use your car every day, Milewise could be the smarter way to insure your vehicle.