The Dark Side of Pay-per-Mile Car Insurance

The Dark Side of Pay-per-Mile Car Insurance

| April 29, 2021
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During the pandemic, pay-per-mile car insurance became quite popular with many people working from home. 

Less Is More

This car insurance program allows you the opportunity to pay for insurance protection for the number of miles you drive -- the less, the better.  Most insurance companies who offer this type of program, require a plug-in device placed on your vehicle in which to accurately track your mileage.  This data is then returned to the insurance company's rating system.

In The Dark

Depending on the area you live in, you may store your car or truck during the winter months. 

If you participate or are considering participating in this program, the pay-per-mile device cannot accurately track your mileage in these situations: 

  • Parked and the battery dies. 
  • In storage with the battery disabled.
  • In a tow yard and battery disconnected from an accident or impact.

While it seems like it would just not charge you, since you are not driving your vehicle, that is not the case.  

Estimated Mileage Model

When one of the above examples occurs, the device will stop sending data to the insurance company.  With the rating system unable to rely on the device, it will automatically default to an estimated mileage model, which may skew the rate.  

The Light Side

If you experience this, the good news is it can be rectified.  If you are a client of Consultative Insurance Group, simply contact our team, and we can contact the insurance company and get this corrected.  If you are not currently a client and would like to be click here; otherwise, you will need to reach out to your current insurance agent to rectify on your behalf.  


The battery in the vehicle has to stay charged for the plug-in device to work. 

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