Allstate Milewise® Auto Insurance Review [UBI Auto Insurance]
Allstate Milewise offers pay-per-mile and daily use options, which makes it ideal for low-mileage drivers who want to save on car insurance. Read on to learn if Milewise is right for you.
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UPDATED: Jun 21, 2022
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- Allstate Milewise has a daily rate and a per-mile rate for basic policies
- The Milewise program allows drivers to choose all the same coverages as non-usage-based policies
- Allstate Milewise isn’t suitable for unsafe drivers or high-mileage drivers
Allstate Milewise is usage-based insurance for low-mileage drivers that can save them a significant amount of money on their car insurance. Drivers can pay a daily rate plus a per-mile rate or a higher daily rate for higher mileage vehicles.
However, usage-based programs aren’t for everyone, so do your research before signing up with Allstate Milewise. For example, not all drivers will save with a usage-based program. It depends upon their mileage and driving habits.
To see if Allstate Milewise is a good choice, read on to learn more about Milewise by Allstate. We will cover Milewise’s pros and cons, how rates are calculated, and more.
Allstate Milewise Pros and Cons Review
Looking at the pros and cons is a great way to determine if a program is the right choice for you. We’ve made a comprehensive list of all of the pros and cons of Allstate Milewise.
Pros of Milewise
Because Allstate Milewise is a usage-based program meant to reduce drivers’ insurance costs, there are many great pros. Like low-mileage auto insurance discounts, the program is ideal for low mileage drivers, such as retirees or people who work from home. Take a look at the list of Allstate Milewise pros below.
- Same coverage and discounts as a normal policy. You can choose from the same range of coverages and discounts as you would for a standard usage policy.
- Setting up the device is easy. The Allstate Milewise uses a simple device that plugs into your On-Board Diagnostics (OBD) port. You can see your mileage and charges on the accompanying Allstate app.
- Charges are straightforward. Allstate lists what your costs will be for a policy. The daily charge is usually around $2 per day and then a certain amount per mile, usually just a few cents.
- Miles are capped. Allstate Milewise will cap out miles after a certain number, usually 150 or 250 miles, so you won’t pay for more miles than that if you are on a road trip.
- Earn points for good driving. You earn points for good driving, which you can use for various rewards, from gift cards to daily deals.
Allstate Milewise also offers an unlimited option for cars, where just a daily rate is charged. This daily rate is higher than the option of the daily charge combined with a pay-per-mile charge, but if you drive long distances, it may end up being cheaper than paying the per-mile rates.
Cons of Milewise
As with any usage-based program, some cons go along with the pros. Some of the cons of Allstate Milewise are as follows:
- Limited availability. The Allstate Milewise program is available in less than half of U.S. states.
- Expensive for high mileage drivers. If you drive more than 10,000 miles a year, Allstate Milewise will quickly cost more than a standard auto insurance policy.
- Tracks your driving data. Allstate doesn’t just track your mileage but also your speed, time of the trip, distance, and braking. If you drive late at night or speed, your rate could go up.
- Charged if the device is not working. If the device stops working, you are automatically charged 40 miles per day until the device is fixed, even if you don’t drive at all.
Technology isn’t always perfect, and programs are always being perfected and expanded. However, if you are a safe driver and keep track of your mileage on your app, then most of these cons won’t apply to you. On the other hand, if you struggle with safe driving techniques and drive long distances, the program is probably not for you.
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How Rates are Calculated for Allstate Milewise
The main attraction of Allstate Milewise is that drivers know exactly how much they are paying per mile. If they don’t drive at all for one month, then they will just pay the low daily rate.
To get a quote and learn how much they will be paying for the daily and per-mile rates, drivers will need to provide their personal information, such as their name, date of birth, and address. They will also need to supply vehicle information, such as the year, make and model, or Vehicle Identification Number (VIN).
Insurers will also look at driving history, personal information, and vehicle type to calculate rates, which is standard practice. For example, your daily rate may be slightly higher than the standard daily rate listed if you have a history of at-fault accidents and tickets.
Your rates will also depend on what type of coverage you choose. Auto insurance coverage options for Allstate Milewise include Pay-Per-Mile car insurance or Unlimited policies. With Pay-Per-Mile, there is a set daily rate, usually set at a few dollars per day, and a per-mile rate. Depending on your location, car, and driving record, the additional per-mile rate can be anywhere from a few cents to a dollar per mile.
With Allstate Milewise Unlimited policies, the set daily rate is higher, but you don’t pay a per-mile fee. This makes Unlimited policies better for higher-mileage vehicles. However, if you drive more than the average amount, you will still be better off getting a regular insurance policy as the daily rate charges can add up to the same or more.
As for payments, both types of Milewise Allstate policies use an automatic billing system. There is a minimum balance your account needs to have, and when your minimum amount is about to be used up, your saved payment method is automatically charged.
How to Decide If Allstate Milewise Is for You
Drivers should consider Allstate Milewise if they have safe driving habits and accrue low annual mileage. However, they should also ensure they are comfortable with their data being tracked and a set payment plan.
Because drivers know exactly how much they will be charged per mile, the policy is great for drivers who like to control how much they spend on car insurance. If drivers find that they are going over their budget for car insurance, they can lessen the number of trips they take.
However, if drivers drive an average amount of miles a year, which is generally more than 10,000 miles, they would likely be better off with a standard insurance plan that isn’t usage-based. Drivers also shouldn’t consider Allstate Milewise if they aren’t comfortable with their data being tracked, struggle with speeding or hard braking, and don’t want to pay a daily rate.
The Final Word on Allstate Milewise
Allstate Milewise is a good choice for safe drivers who don’t drive often and are okay with their driving data being tracked. If you want a program where you know exactly how much you’ll be paying per car trip, then Allstate Milewise may be for you.
If you drive long distances, drive at odd hours, and brake hard or speed, then Allstate Milewise may not save you much money at all.
To find a car insurance policy whose price fits your budget, you should use a quote comparison tool to shop around at different insurance providers in your area.