Allstate Milewise Review: How It Works & What You Should Know

Allstate Milewise offers the same coverage as a traditional auto insurance policy, but it charges only a daily rate plus a per-mile fee. The less you drive with a Milewise policy, the more you can save using this pay-per-mile insurance program.

Milewise is a great fit for people who work from home or don’t drive much, like retirees or stay-at-home parents. That said, it’s available in only 17 states, and if you drive a lot, you might pay more than you would with a standard policy.

In this Allstate Milewise review, we explain what Milewise is, how it works, and who it’s the best fit for.

What Is Allstate Milewise?

Milewise is Allstate’s pay-per-mile insurance program, which the auto insurer introduced in 2018. The program allows you to pay only for the miles you drive, using telematics data provided by a plug-in device you install in your vehicle.

Insurers use telematics programs to track driving habits and determine driving patterns, rewarding low-risk and low-mileage drivers with cheaper insurance premiums in exchange for being allowed to gather and use the data to better predict accident risk and vehicle usage.

How Does Allstate Milewise Work?

Allstate uses a plug-in device to track how many miles you drive each day. You can use the Allstate mobile app to review each trip and monitor your driving habits and daily costs. The Milewise program offers two options: you can pay a daily rate plus a per-mile rate for each mile driven or choose the unlimited option, which charges a single daily rate no matter how much you drive.

Here’s more on pay-per-mile insurance and how Allstate calculates your Milewise premium.

Pay-per-mile insurance explained

Although the national average mileage per driver is 14,489 miles per year, according to the most recent data from the Federal Highway Administration, many drivers travel far fewer miles annually.

Auto insurance companies are offering solutions like pay-per-mile insurance, which charges you only for the miles you drive instead of a flat, predictable rate based only on local and personal factors, like age, driving record, claims frequency, and vehicle repair costs in your ZIP code.

But Allstate isn’t the only insurer with a pay-per-mile option. Nationwide offers its version of pay-per-mile car insurance, SmartMiles. Some insurers — like Metromile and Mile Auto — offer only pay-per-mile insurance policies.

How does Milewise calculate your rates?

Milewise uses traditional factors, like your age, driving history, and vehicle type, to determine your daily base and per-mile rates. Your monthly payment depends on how many miles you drive and how often.

Here’s an example of what you might pay with Milewise. Let’s say your daily rate is $2, which gives you a monthly base rate of $60 for a 30-day month. If you have a per-mile rate of $0.05 and drive 1,000 miles that month, your total monthly fee would be $110.

Driving behaviors such as driving late at night, abrupt braking, and speeding over 80 mph can also affect your monthly rate in the following states:

• Arizona
• Minnesota
• Missouri
• Oklahoma
• Pennsylvania
• South Carolina
• Wisconsin

Allstate Milewise vs. Drivewise

Milewise is Allstate’s pay-per-mile program. You pay a flat daily rate plus a mileage fee for each mile you drive.

On the other hand, Drivewise is the company’s usage-based insurance program, which uses other factors to determine your driving score and provides a discount for safe driving habits. Allstate Drivewise monitors things like:

• Driving over 80 mph
• Sudden stops
• Late-night driving between 11 p.m. and 4 a.m.
• Phone usage while driving

Although Allstate advertises savings of up to 40%, our research has found that the average Allstate customer saves around 20% to 25% after participating in Drivewise. You’ll also receive a small participation discount, which varies by state.

Your rates won’t fluctuate on a traditional Allstate auto insurance policy with Drivewise as an option, but they will if you get a Milewise policy.

People who don’t drive much — like stay-at-home parents, retirees, people who work from home, or those with short commutes — may benefit the most from Milewise. Drivewise may be a good idea if you drive more than 10,000 miles but pride yourself on your safe driving habits.

How Much Can You Save With Allstate Milewise?

Allstate doesn’t advertise how much you can save with Milewise since it largely depends on how much you drive. Still, its website suggests that low-mileage drivers who average 3,000 miles annually can save around 50% compared to a traditional Allstate auto policy with the same coverage.

For some, those high savings could be a reality, as you can see in the screenshot below of a Reddit user who almost cut their auto insurance bill in half with Milewise.

Another existing Allstate Milewise user on Reddit discussed the device’s sudden braking sensitivity. This may be worth considering if you live in an area with a lot of traffic and the potential for sudden stops — even if they help you avoid an accident.

Is Allstate Milewise Worth It? What Real Customers Are Saying

Although Allstate Milewise might not be right for all drivers, it has helped some people save money on their car insurance, based on a slew of online testimonials. Take the Reddit user below, who had to insure two newly licensed teenage sons and saved about 50% by switching to Milewise.

Another Reddit driver in their 40s with a clean driving record explained to another user that you prepay for insurance with Milewise and revealed their rates and how driving behavior has affected them.

If you’re interested in signing up for Milewise, make sure you understand how it works and how much the company will charge you. And give a realistic annual mileage, or you could end up paying more than you expect, like the X user shown below.

And if you’re buying an Allstate auto insurance policy online, make sure you double-check what you’re signing up for, as the Trustpilot reviewer below advised.

How to Use Allstate Milewise

Allstate makes it simple to use Milewise. Take these steps to get started:

1. Sign up for Milewise by contacting your Allstate insurance agent or selecting it when you purchase a new policy.
2. Wait to receive your vehicle’s plug-in device in the mail.
3. Once you receive the device, plug it into your car. Allstate has instructional videos on its website if you’re unsure how to install it.
4. Download the Allstate mobile app if you don’t already have it.
5. Monitor your trips in the Allstate app or your online account within 48 hours of finishing each one.
6. Keep an eye on your driving habits and daily rates.

Allstate Milewise works like prepaid auto insurance. You make a predetermined down payment into your account and the money gets depleted with each trip. Once you reach a minimum balance, Allstate will automatically charge the credit card in your Milewise account.

Allstate Milewise FAQs

Pay-per-mile insurance is a good fit for low-mileage drivers who already practice safe driving habits. We answered the most common questions about Allstate Milewise to help you determine if it’s right for you.

Is Allstate Milewise worth it?

It depends. Allstate Milewise might be worth it if you have a short commute, are a remote worker, or are a stay-at-home parent. Milewise might help you save money on your car insurance if you drive less than 10,000 miles annually.

What’s the maximum miles you can drive per day with Milewise?

There’s no maximum mileage you can drive with Milewise. Allstate will only charge for the first 250 miles per day (or 150 miles in Illinois, Indiana, Ohio, and Oregon).

How does pay-per-mile car insurance work?

Pay-per-mile car insurance charges you a daily rate plus a per-mile rate for each mile you drive. Your insurer charges you only the daily rate on days you don’t drive. Rates vary by insurance company, state, and driver profile.

Why is Allstate so expensive?

Many factors go into auto insurance pricing, including your age, driving record, claims history, vehicle type, and ZIP code. Allstate might not be the cheapest car insurance company for all drivers, which is why it’s important to compare quotes to find the best price for your coverage needs.

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Sources:

1. Federal Highway Administration, “Summary of Travel Trends 2022 National Household Travel Survey,” Accessed June 27, 2024.
2. PR Newswire, “Allstate launches new pay-per-mile insurance in New Jersey,” Accessed June 27, 2024.
3. Reddit, “Allstate’s milewise,” Accessed June 27, 2024.
4. Reddit, “All State Milewise Feedback, Please,” Accessed June 27, 2024.
5. Reddit, “Question about All State Milewise,” Accessed June 27, 2024.
6. Trustpilot, “Allstate,” Accessed June 27, 2024.