For the best rates on cheap pay-as-you-go car insurance, turn to Geico, Erie, and Progressive, with plans starting at $35/month.

Explore the best pay-as-you-go car insurance providers. You’ll learn about the benefits of usage-based insurance, how discounts can maximize your savings, and key factors that influence your rates.

Company	Rank	Monthly Rates	A.M. Best	Best For	Jump to Pros/Cons
	#1	$35	A++	Competitive Rates	Geico
	#2	$37	A+	Low Costs	Erie
	#3	$40	A+	Usage Flexibility	Progressive
	#4	$42	B	Safe Driver	State Farm
	#5	$45	A+	Reliable Discounts	Nationwide
	#6	$48	A	Custom Options	Farmers
	#7	$50	A+	Broad Availability	Allstate
	#8	$51	A	Affordable Coverage	Mercury
	#9	$52	A	Strong Reputation	Safeco
	#10	$55	A	Dynamic Savings	Liberty Mutual

Whether you're an occasional driver or seeking to lower costs, this article provides essential insights on how to get cheap car insurance that fits your needs and budget.

By entering your ZIP code above, you can get instant car insurance quotes from top providers.

What You Should Know

• Geico offers the best pay-as-you-go car insurance coverage
• Learn how usage-based insurance can save you money based on your driving habits
• Explore discounts to further lower your pay-as-you-go car insurance premiums

#1 – Geico: Top Overall Pick

Pros

• Affordable Rates: For $35 a month, Geico offers a solid choice for those who watch their spending and want options.
• Theft Discounts: Save more by putting anti-theft devices on your vehicles. (Read More: Best Low-Mileage Car Insurance Companies)
• Telematics Insights: Geico’s program tracks your miles with precision. It offers insights that can help you drive better.

Cons

• Device Installation: Requires installation of a tracking device or app, which may inconvenience some users.
• Driving Behavior Monitoring: Keeping an eye on driving behavior might result in higher insurance rates for drivers who don’t drive well.

#2 – Erie: Best for Low-Cost

Pros

• Low Premiums: Erie’s pay-as-you-go auto insurance starts at $37 each month for the driver, which is cheap enough.
• Young Driver Rates: It offers slashed prices for young, inexperienced, and first-time drivers to get cheap insurance. (Learn More: Erie Car Insurance Review)
• Clear Pricing: Features a straightforward pricing model based on usage, helping customers manage costs easily.

Cons

• Limited Add-Ons: The pay-as-you-go plan might not have the same specialized coverages as the old insurance policies.
• Billing Confusion: The way the billing system works can be confusing, and that might make it hard to understand how much we need to pay for what we use.

#3 – Progressive: Best for Usage Flexibility

Pros

• Customizable Tracking: Allows customers to choose how their driving will be monitored for personalized pricing options.
• Homeowner Discounts: Offers discounts for homeowners even if their home isn’t insured. Explore bundling discounts in our Progressive car insurance review.
• Safe Driving Rewards: Incentives for safe driving habits can lead to additional discounts based on performance.

Cons

• Complex Rate Calculations: That flexibility can also result in complex calculations, making it difficult to know costs ahead of time.
• Frequent Rate Changes: Customers are at risk of having rates change frequently, so it’s harder to budget and plan for the long term.

#4 – State Farm: Best for Safe Driver

Pros

• Safe Driving Discounts: These are perks for drivers who play it safe on the road, and they can add up to some excellent savings for those who drive carefully.
• Feedback Program: As mentioned in our State Farm car insurance review, the Drive Safe & Save program offers personalized feedback on driving.
• Defensive Driving Benefits: If you’ve taken a defensive driving course, you can snag some discounts, which helps promote safer driving.

Cons

• High Mileage Limitations: If you drive a lot or go on long trips, you might not get as much out of the program because of all the miles you put on your car.
• Strict Criteria: Focusing on safe driving might mean fewer discounts for those with not-so-great driving records.

#5 – Nationwide: Best for Reliable Discount

Pros

• Diverse Discounts: They provide a range of dependable discounts. You can save if you are a safe driver or if you hold multiple policies.
• Vanishing Deductible Feature: Your deductible will go down if you practice safe driving. You can find more details in Nationwide car insurance review.
• Multi-Policy Savings: You can save more if you bundle your pay-as-you-go insurance with other Nationwide policies. It opens the door to more discounts.

Cons

• Confusing Discounts: The many discounts can confuse some shoppers, making it hard to see how much they save.
• Complex Calculations: The reasons for discounts are complicated. It is hard for drivers to know what the rates will be.

#6 – Farmers: Best for Custom Options

Pros

• Tailored Coverage Plans: Offers highly customizable pay-as-you-go options to fit unique needs and driving habits effectively.
• Flexible Deductibles: Offer various deductible options. They weigh the monthly costs against what claims might arise. See more details on our page, Farmers car insurance review.
• Rideshare Coverage: The ease of adding coverage for those who sometimes drive their own cars for rideshare.

Cons

• Limited Appeal for Simple Coverage: Customization can confuse those looking for simple, straightforward insurance that charges by usage.
• Potential for Underinsurance: Customizable plans can create gaps in coverage as one chases lower premiums.

#7 – Allstate: Best for Broad Availability

Pros

• Widespread Accessibility: Allstate offers its pay-as-you-go insurance in many places. It serves a variety of drivers.
• Early Signing Discount: Provides discounts for customers who join their pay-as-you-go program before their current policy ends.
• Milestone Rewards: As mentioned in our Allstate car insurance review, drivers can receive extra discounts for reaching safe driving milestones as time goes on.

Cons

• Inter-State Coverage Complexity: Coverage and pricing adjustments may complicate matters for drivers frequently crossing state lines.
• Data Management Challenges: Handling a lot of data can sometimes result in pricing errors or claims issues down the line.

#8 – Mercury: Best for Affordable Coverage

Pros

• Cost-Effective Coverage: Offers affordable pay-as-you-go options with premiums starting at $51 per month for drivers.
• Pay-in-Full Discount: Customers may receive additional savings by paying their premiums in full upfront.
• Low-Cost Entry: Affordable rates make it an excellent option for drivers new to usage-based insurance. (Read More: Best Low-Mileage Car Insurance companies)

Cons

• Higher Deductibles: Cheaper premiums might come with higher deductibles, which could mean you'll end up paying more out of your own pocket when you file a claim.
• Potential Rate Increases: Pricing can go up depending on the type of driving, which shrinks the long-term potential savings for some users.

#9 – Safeco: Best for Strong Reputation

Pros

• Trusted Brand Recognition: It brings comfort, a solid name built on years of trust in the insurance industry.
• Claims-Free Cashback: Rewards for safe driving fit right in with their goal of keeping customers happy and stress-free.
• Accident Forgiveness: If an accident isn't your fault, Safeco has your back by keeping your rates from increasing to help out careful drivers.

Cons

• Possible Technology Lag: It may show a simple approach to the technology used, and that can affect how accurate and quick the pricing is.
• Complex Policies: Comprehensive policies might be challenging for some customers to fully understand or navigate.

#10 – Liberty Mutual: Best for Dynamic Savings

Pros

• Innovative Savings Opportunities: Provides flexible savings by changing premiums according to how one drives in the moment.
• Competitive Long-Term Pricing: You can start at $55 a month and save quite a bit with their pricing.
• Flexible Coverage Adjustments: Customers often change their coverage to pay only for what they truly need.

Cons

• Complex Savings Structure: The dynamic savings model may create a pricing structure that's hard to understand for some.
• Technology Dependence: Relies heavily on tracking technology. Read our car insurance review of Liberty Mutual.

Understanding Pay-As-You-Go Car Insurance

Pay-as-you-go car insurance, also called usage-based or pay-per-mile insurance, charges premiums based on the miles you drive, not on set rates.

This flexible model requires that driving behavior be tracked through either a telematics device or a mobile app so that insurers can offer personalized rates and discounts for safe driving.

Read More: Car Insurance Companies and Their Car Tracking Devices

If you don’t drive much or want to lower your car insurance costs while keeping the coverage you need, this is a solid option. Here are the monthly rates for minimum and full coverage from the top insurance companies.

Insurance Company	Minimum Coverage	Full Coverage
	$50	$130
	$37	$100
	$48	$120
	$35	$95
l	$55	$135
	$51	$132
	$45	$115
	$40	$110
	$52	$125
	$42	$105

Choosing pay-as-you-go car insurance can lead to significant savings while ensuring you have the coverage you need. By understanding your options and comparing rates, you can find a plan that fits your driving habits and budget.

Benefits of Usage-Based Insurance

Usage-based insurance plans offer more than just lower premiums. Many companies give you insights into your driving habits through apps or devices that track your movements.

It can make driving safer, and safer drivers can get discounts. Those with clean records may discover special offers that build their savings over time. (Read More: What Is a Driving Record and What Does It Track?)

Pay-As-You-Go Car Insurance Discounts

Most insurance companies offer multiple discounts that can help reduce your pay-as-you-go premium. Look for discounts such as safe driver, multi-policy, and good student.

Insurance Company	Available Discount
	Safe Driver, Multi-Policy, Good Student, Anti-Theft Device, Early Signing
	Safe Driver, Multi-Policy, Pay-in-Full, Young Driver, Vehicle Safety
	Safe Driver, Multi-Policy, Good Student, Homeowner, Bundling
	Safe Driver, Multi-Policy, Good Student, Military, Anti-Theft Device
	Safe Driver, Multi-Policy, Pay-in-Full, Good Student, Vehicle Safety
	Safe Driver, Multi-Policy, Good Student, Pay-in-Full, Vehicle Safety
	Safe Driver, Multi-Policy, Good Student, Anti-Theft Device, Pay-in-Full
	Safe Driver, Multi-Policy, Pay-in-Full, Good Student, Homeowner
	Safe Driver, Multi-Policy, Good Student, Anti-Theft Device, New Vehicle
	Safe Driver, Multi-Policy, Good Student, Vehicle Safety, Defensive Driving

Some providers reward drivers who complete defensive driving courses or use anti-theft devices. Exploring and combining these discounts can lead to substantial savings on your policy. More tips in our article titled "14 Ways To Get Cheap Car Insurance."

Factors Influencing Pay-As-You-Go Car Insurance Rates

Pay-as-you-go car insurance offers a flexible and cost-effective solution for drivers looking to save on premiums by paying only for the miles they drive. (Read More: Best Low-Mileage Car Insurance Companies)

Understanding the key factors that influence your rates can help you navigate your options and maximize your savings.

• Actual Mileage Driven: Pay-as-you-go policies charge based on the miles you drive, so the less you drive, the more you save.
• Vehicle Type: Some vehicles may be cheaper to insure under pay-as-you-go plans due to their safety ratings and lower repair costs.
• Location Risk Assessment: Areas with lower accident rates may result in lower premiums, as insurers consider regional risk factors in their pricing.
• Provider-Specific Guidelines: Each insurance provider may have unique criteria for assessing risk and setting rates, making it essential to compare offers for the best deal.

Opting for the appropriate pay-as-you-go car insurance can save you a lot, as well as keep you protected with the relevant policies. Research your choices, contrast different providers, and locate a plan that suits you the most.

Finding the Best Pay-As-You-Go Car Insurance Provider

Choosing the right insurance company matters. It would be best if you looked at how they treat their customers, how they handle claims, and their financial strength, which you can find in A.M. Best ratings.

Geico has good rates and solid support. Erie stands out for its customer satisfaction and wide coverage. Progressive brings new tools to track how you drive, along with different discounts. You can read our review of Read our review of Progressive Snapshot more details.

When you’re ready to see how much you can save on your car insurance, enter your ZIP code below into our free comparison tool.