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As a disruptor of the traditional insurance industry, it may come as no surprise that we get a lot of questions. We get it – insurance is confusing, technology can be confusing, and people want to know how it all works. Here at Metromile, we’re all about giving the people what they want. The key to pay-per-mile car insurance is the Pulse device; it’s what securely counts your miles so we can bill you appropriately.

Today, we’re taking a deep dive into the Pulse – what it is, what it does, and how we use it to save you hundreds on your car insurance.

A Brief Background on Telematics

Telematics is the technology of sending, receiving, and storing information relating to remote objects, like your car, through telecommunication devices, such as a cell phone, a GPS system, or our Pulse device. Telematics technology can track how many miles you drive and can also measure driving behavior. Telematics is what enables Metromile’s insurance – and without it, pay-per-mile simply would not be possible.

The combination of a GPS system with onboard diagnostic technology can show you a car’s location and the trips the car has taken. Basically, it is the technology used behind the wheel to give the driver information about their car or where they are going utilizing both internet and satellite connectivity. The first form of telematics started with navigation systems, eliminating the need for printed directions and old-fashioned maps. Instead, drivers were able to use the easy navigation system set up in their car. Telematics has since expanded to alerting drivers about their fuel levels (fuel monitoring) and traffic alerts. Telematics technology can even help drivers with roadside assistance and enable satellite radio.

How the Pulse Actually Works

Metromile uses a telematics device called the Pulse: a small electronic gadget that plugs into your car’s diagnostics port and collects data about your driving. We believe the biggest risk factor for getting into an accident is mileage – if you aren’t on the road, you won’t get into any accidents. As such, our primary rating factor is mileage.

Metromile gives you insight into your car’s health, location, and driving data – like fuel economy and trip data – through the Metromile Pulse. The Pulse uses telematics technology, which connects to a cellular network, to transfer the data collected from the car into our smart driving app. The app will notify a customer if the Pulse detects an error code from the vehicle. This code could be related to an engine, exhaust, or some other type of sub-system within the vehicle. The customer can tap on the engine code within the app to reveal an overview car that provides a detailed description of the issue along with the severity of the case. The customer can also check the health of their car at any time within the app by tapping on the car avatar on the overview screen to see a list of any codes and previously found codes.

Frequently Asked Questions – Answered

What is the Metromile Pulse?

Once in place, the Pulse securely counts your miles to determine your total monthly bill. The Pulse works directly with Metromile’s smart driving app, supplying added features like trip tracking, monitoring your vehicle’s health, and a GPS vehicle locator.

What does the Pulse do? How does the Pulse work?

The Pulse is the key to pay-per-mile insurance. The Pulse is able to use your GPS location to count your daily mileage, decode Check Engine Light readings, and act as a GPS device. The Pulse is powered by telematics technology, which sends, receives, and stores your car’s data. You can also make use of this data through Metromile’s smart driving app.

Can I get a Pulse device if I’m not a pay-per-mile insurance customer?

Sadly, no. Currently, we only offer Pulse devices to Metromile pay-per-mile insurance policyholders. You can learn more about pay-per-mile car insurance here.

Is it mandatory to plug in the Pulse?

The Pulse must be plugged into your car at all times so that mileage can be accurately measured and billed. There are exceptions, however. For example, when you get your car serviced, it’s okay to remove the Pulse so that the mechanic can access the OBD-II port. If your Pulse stops transmitting a signal to Metromile at any time, you will receive a notification via email alerting you to plug the Pulse back in.

Do I need to plug in the Pulse before my insurance can be effective?

You are covered as of the effective date of your policy, whether or not your Pulse device is plugged in. As you near your policy effective date, we will ship your Pulse device to you, be sure to plug it in as soon as you receive it. You will receive email reminders once you receive your Pulse device to plug it in to avoid penalty charges.

Will the Pulse drain my car’s battery power?

Not to worry – the Pulse device should have little to no effect on a healthy car battery. Even if your car isn’t being driven, the pulse will not drain a healthy battery.

Does the Pulse sync with my smartphone?

The Pulse operates independently by transmitting data securely through a cellular modem and does not sync with your smartphone. In order to set up the Pulse, plug the device into your OBD-II port and check to see if there is a pulsing red/orange light. That’s it. Once you see the light, the Pulse has been connected and is securely sharing your car’s mileage data with Metromile. Even though the Pulse does not sync with your smartphone, Metromile does offer a smart driving app that works in conjunction with the Pulse. The app keeps you up-to-date on your car’s health, tracks your car’s location with GPS features, and sends street sweeping alerts in select cities. It’s just another bonus we love to provide to our loyal customers.

Can I turn off location tracking on my Pulse?

Absolutely. To disable the GPS function on your Pulse, navigate to your online dashboard. Click the small arrow pointing down in the upper right-hand corner next to your account avatar. Go to ‘Account Settings’ and switch ‘Location Services’ from ‘Yes’ to ‘No.’ Please note: this will also disable Metromile’s smart driving app features such as trip tracking and street sweeping notifications.

What happens if I unplug the Pulse?

If you unplug the Pulse for any reason, you will receive alerts to your email associated with your Metromile account asking you to plug the device back in. For all pay-per-mile insurance customers, the Pulse must be plugged into your car at all times so mileage can be accurately measured and billed. We understand that there are times when you may need to unplug the Pulse, like when you get your car serviced. Don’t sweat it — it’s okay to remove the Pulse so that the mechanic can access the port. Be sure to plug the Pulse back in once your service has been completed.

If I cancel my insurance policy with Metromile, can I still keep the Pulse?

If your insurance policy is canceled for any reason, you will need to return the Pulse to Metromile using a provided pre-paid envelope. If we do not receive your Pulse within 30 business days, your pre-authorized debit or credit card on file will be charged a $100 fee.

Are there any security vulnerabilities in the Pulse device?

We take the security of our products and services very seriously and actively work to ensure that our products are safe and provide benefits to our customers.

My Pulse was stolen or not delivered. What do I do?

If your Pulse device was never delivered or stolen please give us call at (888) 244-1702, 6am – 6pm Pacific Time, Monday – Friday to update your shipping information and get a new device mailed out.

What do I do with the Pulse device if I sell my car and/or get a new car?

Please be sure to remove the device before you sell your vehicle. If you are replacing your old vehicle with a new one, you can use the same device from your previous vehicle in your new car. Please either contact us or navigate to your DASHBOARD to add the new vehicle to your policy.

What if I rent a vehicle? Do I need to install the device?

When renting a vehicle you are not required to plug the Metromile Pulse device in, so please leave that device plugged into the vehicle listed on your policy.

Still Have Questions?

Got any lingering questions we didn’t cover? Give us a call at 1.888.311.2909, send us a DM, or Tweet at us. If you haven’t yet downloaded the Metromile smart driving app, you’re missing out on some majorly cool features, such as trip tracking, vehicle diagnostics, parking location, and more! Click here to download for your iPhone, or here to download for your android. If you’re a low-mileage driver who hasn’t made the switch to Metromile yet – what are you waiting for? Grab a quote from us anytime, because it’s always free. Be safe out there and see you on the roads.

Julianne Cronin is a Bay Area freelance writer, content creator, and founder/editor of the women’s lifestyle site, The Wink.

Every driver knows car insurance is a non-negotiable must. But “car insurance” can mean a slew of different things, depending on the type of coverage you choose. And a lot of factors—like your budget, lifestyle, and vehicle—can affect your choices. Whether you’re a seasoned pro behind the wheel or a first-time driver just learning the ropes, you’ll want to know the ins and outs of some major coverage types so you can select the perfect plan for you.

How to Choose the Right Liability Coverage Levels for your Budget and Lifestyle

Get To Know The Different Types of Liability Coverage

There are many different types of coverage, but three major terms to know are liability, property damage, and bodily injury:

Liability Coverage:

Liability Coverage is the basic coverage level required for most drivers in the United States. If you cause an accident, your liability coverage will pay for damages to the other party’s vehicle and/or any bodily injuries they sustained (at the levels chosen). Each state has minimum required liability limits, but it might be worth purchasing a policy with higher limits to make sure you’re better protected. Better protection might mean a higher premium, but it can pay off if you end up needing to use it—if the damage caused in an accident exceeds your coverage limits, you could be held responsible for the remainder. There are two types of liability coverage:

1. 1. Property Damage (PD) Coverage is a specific type of liability coverage that covers damages to things (that don’t belong to you). This type of coverage pays for any type of tangible property, including the other driver’s car, or any other pieces of property that may have been involved in an accident you caused, like a building, pole, garage, etc. Some states require drivers to have a predetermined minimum amount of this coverage.

1. Bodily Injury (BI) Coverage is required by most states, and it covers damages to people (again—not including you). If you cause an accident, BI coverage will pay for costs related to any injuries or deaths. It covers costs for things like medical treatment, rehabilitation, and funeral costs, as well as costs related to mental or emotional distress that results from bodily injury. If you’re sued for causing an accident, BI coverage may also pay for lawyer’s fees. Depending on the state you live in, you may be required to have a predetermined minimum amount of BI coverage.

One of the most important things to know about any type of liability coverage is what it doesn’t cover. If you cause an accident, PD won’t cover any damages to your vehicle, and BI won’t cover any medical expenses you or your passengers might incur. Liability coverage is solely meant to protect other parties in the event that you cause an accident. The good news is, there are plenty of other types of coverage that can come in handy in these unfortunate events.

How To Tell if You Really Need Property Damage, and Bodily Injury Coverage

Now that you know what these specific coverage types are for, how do you know if they’re right for you? And how much do you really need, anyway? It’s important to consider two big factors when choosing your coverage: your state’s legal requirements and your own financial limitations.

The Legal Stuff

First, let’s start with the legal side of things. No matter which state you’re driving in, liability coverage is most likely a must. It’s mandatory in nearly all states, and even in states where it’s not required, there are financial-responsibility laws that can be met by purchasing it. The state-mandated minimums are generally lower than many people would want ($20,000 to $30,000 for bodily injury to one person, $50,000 for all people hurt in the same accident, and up to $25,000 for accident-related property damage).

The Money Stuff

The next important factor to consider is your budget. The state requirements for liability coverage are pretty modest, so it’s always a good idea to purchase more protection if you can afford it—especially if you own a home and have other assets you want to keep safe in case of a devastating accident and subsequent lawsuit. Do you have a sizable savings account? A valuable vehicle? All those details matter when deciding how much coverage you need.

Different insurance companies have different maximum limits for liability coverage—Metromile offers limits of up to $250,000/$500,000. But don’t worry—opting for more coverage doesn’t mean you’ll be draining your bank account (especially if you’re with Metromile where low-mileage customers save an average of $611 per year); the more liability coverage you buy, the less expensive it is to add additional coverage. The best way to understand how these costs are broken down into a monthly bill is to connect with a licensed agent and receive a customized quote.

When you’re doing the math to figure out your spending limits, don’t forget one other important factor: your deductible.

Your deductible is the out-of-pocket cost you agree to pay before coverage kicks in. You have the ability to choose your deductible amount and liability protection—working with an agent will help you pick the best plan for your unique situation.

Get The Right Amount of Liability Coverage Today

Still have questions? Visit the Metromile Help Center to find answers to some of the most common coverage questions. If you’re in need of a new insurance company that fits your lifestyle and budget, visit metromile.com or call 1.888.242.5204 for a free quote. And if you’re already a customer and ready to learn more about liability coverage, visit the site or call 1.888.311.2909 for more info. Whether you’re new to Metromile or a just expanding your knowledge, there are experts available to guide your way.

Michelle Konstantinovsky is a San Francisco-based journalist/writer/editor and UC Berkeley Graduate School of Journalism alumna. She’s written extensively on health, body image, entertainment, lifestyle, design, and tech for outlets like Cosmopolitan, Harper’s Bazaar, Marie Claire, Teen Vogue, O: The Oprah Magazine, Seventeen, and a whole lot more. She’s also a contributing editor at Fitbit and the social media director at California Home + Design Magazine. She is an avid admirer of shiny objects, manatees, and preteen entertainment.

From a driver’s perspective, filing an auto insurance claim with most traditional insurance companies isn’t usually as straightforward as it logically should be. The scenario that got you there in the first place was probably anything but pleasant, resulting in a crash, an injury, or worse—both. And of course, the process that follows those unfortunate events can be pretty painful, involving a lot of back and forth, endless piles of paperwork, and most likely a major headache (or even three).

Building a Better Claims Experience, From the Ground Up

So Metromile decided to build the best possible claims system imaginable—from the ground up. They saw the opportunity to use technology to optimize the entire claims process by eliminating any friction claimants experience. That’s why Metromile made the bold move in August 2016 to go off the beaten path and create an entirely new claims system.

How Auto Claims Work (In The Old School Insurance World)

Once you’ve gotten over the initial shock of an accident and you submit a claim to your insurance company, the claim has to go through an investigation process that leads to settlement. The process itself can vary depending on factors like the company’s policies, the nature, and severity of the accident, and whether the accident involved injuries, property damage, or both. But overall, the traditional process has always been pretty consistent:

1. First, a claims adjuster is assigned to your case. They’ll review your policy and may contact you for some details about the accident. They may request a copy of the police report, contact the other driver involved, and talk to any listed witnesses. They may also inspect your car for damages, take photos, and even visit the scene of the accident. If there was medical care involved, they may need you to sign a medical release form so they can review your records, and they may contact your medical providers for information about your injuries.
2. Once your adjuster reviews all records and other information, they’ll determine fault. What you may not know: according to the laws of some states, fault isn’t an all-or-nothing issue. Your adjuster may find you to be partially at fault and therefore hold you partially responsible for the accident. For example, if they decide you’re 80% responsible, and the other driver is 20% responsible, your company may pay 80% of the settlement while the other driver’s insurance company covers the remaining 20%.
3. Your insurance company will negotiate with the other driver’s insurance company to figure out who is ultimately responsible for the damages. If it’s determined that the other driver was at fault, your insurance company may seek payment from that person’s insurance company.

Add to the equation the issue of communication. It’s pretty near impossible to cover all the necessary details in one single phone call or email, so adjusters and claimants will often have to go back and forth (and back and forth and back again) to cover all the ground necessary. This would only be a minor headache if everyone were on the same schedule, but as you can imagine, there’s a whole lot of phone tag taking place in these interactions, which limits the amount of productivity and progress. Talk about a frustrating experience.

How Metromile Uses Data, Science, and Technology to Build the World’s Best Claims Experience

At this point, you’re probably tearing your hair out wondering how anything ever gets done in the traditional claims system. The Metromile team wasn’t too pleased with the process either. That’s why the company decided to go in new direction. Meet AVA.

AVA is Metromile’s AI claims system. She’s able to accurately verify claims and works with our adjusters to quickly resolve them. How does she do it? AVA automates anything that doesn’t require a human touch, so she collects details to help you file, guides you through collecting damage photos, and helps you get paid as soon as possible.

To make this all possible Metromile uses a device called the Metromile Pulse to monitor time on the road (this is how your mileage costs are calculated). AVA uses similar data from Pulse (with your permission) to reconstruct the scene of an accident to help figure out what exactly happened. She can also help connect policyholders with repair shops participating in the AVA open shop program and are located near the zip code of the vehicle’s last location. And if the policyholder has rental coverage, AVA can offer the option of reserving a vehicle through a local Enterprise-Rent-A-Car location on the Metromile online dashboard. Policyholders can even gain access to and schedule an Enterprise shuttle for pick-up from the repair shop or another specified address.

But if all this sounds a little too sci-fi, don’t freak out: just because Metromile has the amazing AVA doesn’t mean the company is all 0s and 1s behind the scenes. Metromile has a dedicated claims team made up of industry experts who work tirelessly to ensure customers get back on the road as quickly as possible. In fact, a lot of the work AVA does directly helps the claims adjusters so they better understand what happened in any situation.

Building an innovative claims process isn’t easy. And Metromile knows that. But we aren’t really interested in going the simple route—instead we are dedicated to providing low-mileage drivers coverage that’s fair, affordable, and high-quality. If you’re already a customer, explore metromile.com and get to know all the unique features that make Metromile the right provider for you. And if you haven’t made the switch yet, head to the website for a free quote and find out how you can take the pain out of the claims process (and so much more).

There are a lot of reasons Metromile stands out in a sea of car insurance options, but perhaps the biggest differentiator is its billing model, which is based on a totally sensible premise that others in the insurance game simply haven’t caught on to: the less you drive, the less you pay.

It seems like a no-brainer, but most car insurance companies require customers to pay a flat monthly fee, regardless of whether they’re commuting two hours daily or keeping their weekend vehicle locked in the garage Monday through Friday. With its innovative billing system, Metromile customers actually have control over how much they spend every month, meaning they can tailor their bill to fit their budget and lifestyle. No more wasting cash on a (necessary) service you hardly ever have time to use.

How Metromile Billing Works

Billing isn’t exactly known to be a thrilling topic for most people (unless those people are accountants…in which case, get excited!). But that’s because many companies make billing a confusing, opaque process—the model at Metromile is built on a simple, straightforward premise, so there are no hidden fees or mystery charges. Here’s how it works:

1. When you first make the switch to Metromile (welcome!), you’ll be charged for your first month’s base rate. That’s it—and in most cases, it’s much lower than you’d expect. Just like other insurance companies, Metromile considers a variety of factors when calculating a base rate—things like the driver age, credit history, type of vehicle, driver history, and more.
2. At the end of the month, you’ll be charged for the next month’s base rate, plus any miles you drove the previous month, at your per-mile rate. Your pay-per-mile rate is unique to you too, based on those same factors mentioned above.

It’s that simple. Plus, when you first sign up for Metromile, you’ll be enrolled in automatic billing, so you never have to worry about missing payments (New Jersey customers have the option of opting out of this system in favor of manual billing or payment by check). Need to update your billing information? No problem. All you have to do is log on to your online dashboard and follow the easy instructions (this is also where you’ll find your billing statements and a lot of other important info).

Why Your Bill Varies Month to Month

You might notice that your rate varies a bit month to month. There are a few good reasons for that. First, it’s important to understand that because your base rate is determined by a daily rate multiplied by the amount of days in each month, shorter months will always cost less (so if there are 31 days in the month versus 30, the base rate will be slightly higher). But your actual daily rate won’t change within a 6-month period unless you make a specific request.

While your base rate will pretty much stay the same (give or take the difference of a few days depending on the length of the month), the other portion of your bill may fluctuate quite a bit—that’s the pay-per-mile portion. Because Metromile doesn’t believe in charging customers for miles they don’t drive (because, well, that’s just not cool), customers are in complete control and have the opportunity to budget their miles accordingly. Your miles are charged retroactively, so you’ll have the opportunity to reflect on your actions and, if necessary, make adjustments. Took a few unnecessarily long joyrides last month? If money’s tight this month, you may choose to ride your bike around town instead and save some dough.

The Deal With Prepayment

When you first sign up for Metromile, you may be charged a prepayment that will be applied as a credit toward your next five bills. That means your first five monthly bills will be calculated using this equation:

Your sixth bill won’t receive a credit, and from there on out, your bill will only ever be calculated from your base rate + per-mile rate x miles driven that month.

This prepayment is only required for first-time policyholders, but you may be pleasantly surprised each time you receive one of those first five bills and remember you already partially paid them (your future self will thank you!).

Your Billing Due Date

Flexibility is great, and Metromile gets that (hence that modifiable billing model). But some things are better set in stone—like your billing date. Your billing cycle begins on your policy effective date. That numerical date on the calendar continues to be your billing date for every remaining month of your Metromile policy (so if your policy starts on the 22nd of May, your billing date will be the 22nd of June, July, August, etc.). Each billing cycle spans a four-week time period and ends on the day before your monthly effective date (so in the above scenario, it would start on the 22nd and end on the 21st of the following month). Your monthly bill will be due two days following your monthly effective date (or four days if you’re in New Jersey).

While you can’t change your billing date, you can absolutely alter your billing method. If you need to change your credit card information, just log into the online dashboard and head to the billing section. If for any reason Metromile doesn’t receive your payment by the due date, you’ll be notified via email, and Metromile will continue to try and charge the card on file. If the card continues to be denied after two failures in a row, Metromile will stop attempting to charge it and instead send you another email with a potential cancellation date for your policy unless payment is received. The good news? No late fees! So just make sure your card info is all up to date, and you won’t run into any problems.

What If I Don’t Drive At All One Month?

If your main mode of transportation is anything but your car, you might be wondering how billing works during a month of no driving. The answer is simple: it’s the exact same system! You’ll still get a bill for your low monthly base rate and pennies per any miles you did drive. If your car is just parked the whole month, you only pay the base rate. Whether you’re stationary or constantly on the go, you’ll be covered with Metromile. And don’t worry if you take a long road trip—you won’t receive an astronomically high bill. Your daily mileage charges are capped at 250 miles per day for each vehicle (150 miles per day in New Jersey), so you won’t be charged for any miles above those amounts in any calendar day.

So whether you’re always behind the wheel or you avoid the driver’s seat whenever possible Metromile makes sure your bill always fits your lifestyle.

Still Have Questions?

One great way to get more answers to common questions is to visit the Metromile Help Center. There, you’ll be able to comb through content on a variety of topics like billing, pricing, coverage, and more. If you’ve got a question, chances are someone else has it, has had it, or will have it in the future.

If you’re still relying on another traditional form of car insurance, visit metromile.com today to get a free quote. And if you’re a current customer looking for a plan that’s more suitable for your needs, head to the website and see what other options are available—you won’t be disappointed.

With most car insurance premiums, you cannot control the amount you pay. You get a quote and cross your fingers, hoping that your bill won’t break the bank. Even if it does, you still have no choice but to pay it, because car insurance is non-negotiable… right?

Here at Metromile, we do things a little differently. Instead of paying a flat fee, your monthly car insurance bill varies and is based on two simple things: your monthly base rate + the pennies-per-mile you pay. That’s it – and it’s all within your control.

How to Master Your Monthly Metromile Bill

Want to learn how to become the master of your monthly bill? Right this way – follow us.

Figuring Out Your Mileage Budget

We get it – figuring out a mileage budget can be stressful, time-consuming, and maybe a little unpleasant. After all, it can be easier to hop into the car and drive anywhere your heart desires without thinking about the slowly ticking odometer. Maybe you have a strict monthly budget you need to stick to. Maybe you don’t want to have a bill that fluctuates from month-to-month. If your ultimate goal is to take control of your financial future, the first thing to check off your list is creating your monthly mileage budget.

First, on a spreadsheet (or even just a plain ol’ piece of paper), create two columns. In the first column, write down your monthly Metromile base rate. This is the rate that you would be responsible for paying even if you drove zero miles. In the second column, write down the estimated mileage for every destination you need to drive to in a month.

For example, if you drive to and from your job, estimate your daily mileage and multiply it by 20 (the number of working days in a month). If you drive to and from church on Sunday, estimate that mileage and multiply by 4. Keep doing this until you have a fairly good estimate of the miles that you consistently drive each month.

Once you have your estimated monthly mileage, multiply that number by your per-mile rate. Add the number you just calculated to your monthly base rate in the first column and voilà! You have successfully estimated the cost of your monthly Metromile bill.

How To Stick to Your Mileage Budget

If the number you calculated is looking a little bit higher than you’d like it to be, try to brainstorm ways to cut down on the number of miles that you drive each month, like Brian D. did.

In December, Brian drove 730.1 miles, mostly shopping for presents and visiting his family in Southern California for the Holidays. The following months, he didn’t drive much, but in March, his monthly mileage peaked at 682.5 miles, which included a 3-day weekend trip to the wine country with friends. He also regularly checks the Metromile app to know how much he owes at one point in time.

Consider the following options to minimize the number of miles driven:

• Carpool to work or events with a friend or family member
• Bike to the store, to church, or even to work instead of driving
• Whenever possible, choose to take public transportation
• Consolidate the number of errands/trips to the store and try to go only once a week
• Take the drive with the least amount of miles, even if it’s not as scenic as your usual route
• If your morning routine includes stopping for coffee or breakfast, pick a coffee shop that’s already on your usual route instead of driving out of your way for that French roast you can’t seem to live without
• Shop online rather than driving all over town
• Deposit checks with a phone camera and app instead of driving to the bank
• If you can, call into a meeting or video chat instead of driving to the office
• Avoid circling around the block for parking – have a game plan of where you’re going to park before getting to your destination

All of these seemingly insignificant things can really add up to a lot of extra miles driven at the end of the month! These options to reduce your monthly mileage may help save you hundreds at the end of the year, and some are probably why you’ve decided to switch to Metromile in the first place. As a bonus, the fewer miles you drive, the less you’ll have to spend on gas each month. That’s a win-win in our book.

You Are Now the Master of Your Monthly Bill

Congratulations! You are now the proud owner of a mileage budget and (most likely) a lower monthly car insurance bill. Well done! By implementing these tips and strategies, you were able to lower your monthly insurance bill to fit within your budget. As with all things in life, the fine art of budgeting takes a bit of time and skill – but you’re well on your way to a healthy financial future.

This exercise is also helpful for prospective Metromile customers, and something that we already take into account when offering a free quote. As always, whether you’re a current Metromile customer or are thinking about making the switch, we want to hear from you! Drop us a line and let us know how we can help. Be safe out there and see you on the roads!

Here at Metromile, we hear a lot of questions about our initial prepayment to sign up for Metromile. We also truly value transparency and don’t wish to confuse any of our customers. The way we work is a little different than traditional auto insurance companies, so that’s why we are here to clear up any confusion about how prepayment works.

What’s Prepayment?

One of the key differentiators between Metromile and traditional insurance carriers is our unique billing model. The short explanation is: the less you drive, the less you pay each month. The Metromile billing structure gives you – the customer – the unique opportunity to always be in control of your monthly bill. This means that you can tailor your bill to fit your budget and your lifestyle. Pretty cool, huh?

So, herein lies the confusion: if your bill varies each month based on how much you drive, how is it possible to prepay for many months at a time? Let’s throw it all the way back and chat about how billing works here at Metromile before diving into the explanation.

How Billing Works at Metromile

When you first purchase your Metromile policy, you are charged for your first month’s base rate. This is because we don’t have any data on how many miles you drove that month. Then, at the end of the first month, you’re charged for the next month’s base rate + any/all miles you drove the previous month, at your per-mile rate.

Autopay is a requirement for all Metromile customers. If there ever comes a time when you need to update your billing info, it’s not a problem. You can always update your billing information from your online dashboard or app at any time. Simply navigate to ‘Billing’ and then select ‘Edit’ in the ‘Payment Method’ section on the right-hand side of the page to edit your payment information.

A special note for all you New Jersey customers: you exceptional folks may opt-out of autopayments and opt-in for manual billing at any time by calling us at 888-244-1702.

So… You Still Haven’t Told Me What ‘Prepayment’ Is

I know, I know. I needed to make sure you understood how the billing process worked before I did! Now onto the good stuff – promise.

Because we charge for insurance based on mileage, Metromile requires a one-time, upfront payment to start a new policy – and this is called a prepayment. A percentage of your prepayment will be applied as a credit to each of your first five billing statements – which means that your first five bills will be slightly lower. When you receive your sixth bill, the prepayment credit will have been fully spent, so you will no longer see a credit. You can think of your prepayment as a “security deposit” on your insurance policy. In the event of a cancellation in the first six months of having the policy, we will refund any remaining prepayment credit.

Prepayment is only a requirement for your first policy term, the credit is applied to your first five monthly bills. After six months your policy will renew, and no future prepayment will be charged or applied to your policy.

Your monthly bill will be made up of your low monthly base rate + (per-mile rate x miles driven that month) – (prepayment amount ÷ 5) until your sixth bill. From there on out your bill will be calculated by taking your base rate, and adding it to your per-mile rate, multiplied by the number of miles driven that month.

Hopefully, that helped to clear up any questions or confusion that you had about how prepayment works at Metromile.

Still Have Questions?

Still have questions? Visit the Metromile Help Center to find answers to some of the most common questions and answers. Now that you fully understand how prepayment works, it is a perfect time to finally get that quote you’ve been thinking about. As always, we are truly here to serve you, so please email, call, Tweet, or DM us with your burning questions. We’ll get you answers as soon as we can. Be safe out there and see you on the roads!

I consider myself somewhat of an expert on cutting costs. I don’t like paying for things I don’t use (who does), and I find myself frequently combing through my own finances to find ways to trim down those recurring expenses. However, there are always a few things that slip through the cracks unnoticed, like the quarterly membership to a gym I haven’t been to since I moved, the wine club I swear I unsubscribed to, and the magazines that mysteriously keep getting renewed every year.

How to Cut the Cord with Your Biggest Money-Wasting Bills

Here at Metromile, we’re all about saving money. We want our customers to only pay their fair share for the things that they use. Your monthly expenses don’t have to wreck your budget, so we’ve rounded up our best tips on cutting down your most expensive bills and making the most from your monthly budget. Buh-bye, overpriced cell phone bill. See ya never, streaming service I used once and then forgot about. Let’s get into it.

The Top Budget-Busting Expenses & How to Cut the Cord – For Good

1. Cable TV: With the abundance of shows and movies available on streaming services like Netflix, Hulu, HBO Go, and Showtime, who even watches cable TV anymore? What’s truly crazy is that the average cable bill rings in at about $80/month! Save yourself some major dough and cut the cord with your cable TV bill – because you probably won’t even miss it when it’s gone.
2. Cell Phone Plan: Besides your rent or your mortgage payment, your cell phone plan might be one of the most expensive bills you’re locked in to pay each month. But it doesn’t have to be. Many cell phone carriers offer less expensive plans with no long-term contracts. Also, apps like Hiatus will negotiate a lower monthly cell phone bill with your provider on your behalf, saving you money and time.
3. Car Insurance: Wait, are you telling me that you’re a low-mileage driver and still paying the same insurance premium as someone who drives 3x more than you? Hold up, that just isn’t right. If you find yourself driving under 1,000 miles every month, you’re most likely a low-mileage driver who could literally be saving hundreds of dollars every year by switching to Metromile. Same great coverage for less money – what’s not to love?
4. Dining out: What starts as a dinner here and a drink there can quickly cascade into delivered lunches every day and happy hour every week. Even if you hate cooking, it pays to research some easy-to-make meals. Go grocery shopping and prepare large batches of food to eat throughout the week and never pay for overpriced Seamless delivery again.
5. Recurring subscriptions: I know, I know – getting a package in the mail is fun and exciting. It’s like a present for you, from you, every month! YAY presents! However, when you sign up for subscription services like Birchbox, wine clubs, dog toy boxes, etc., it can really eat away at your bottom line. The next time your subscription package arrives, make note of how many of the items you will actually use/enjoy. You might be surprised to see that most of the time, those subscription boxes are filled with junk that just ends up cluttering your home. Cancel that recurring subscription, save the money, and enjoy a less-cluttered space.
6. Prescriptions: Depending on your medication, the cost of prescriptions can take a huge bite out of your monthly budget. Consider switching to generic medications instead of brand-name prescriptions – they’re the bio-equivalent of brand-name drugs but can cost 80-85% less. Apps like GoodRx, LowestMed, and BlinkHealth can also help you determine the lowest prices of medications at your nearby pharmacies. Also, if your job offers an FSA or HSA account, utilize that account to stockpile some pre-tax dollars to pay for your prescriptions and doctor’s appointments.
7. Shopping & Entertainment: Whether retail therapy is your way to chill after a long day at work, or you like catching a new blockbuster every weekend (me), finding ways to trim down these indulgences will always be better for your bottom line. When shopping online, I always do a quick Google search to find promo codes and can usually root one out (Retailmenot is the best promo code aggregator). By signing up for loyalty programs at my local movie theater, I manage to always save on concessions or the price of tickets.

There you have it. Are your wheels already turning thinking about which bill you’re going to slash first? Go forth and cut the cord with your biggest budget-busting bills with confidence. Besides, why should you be paying more than you need to for anything? Nowadays, there are so many ways to cut down your monthly costs. As always, get a quote with Metromile today and find out how much you’ll be saving each month! Be safe out there and see you on the roads.

If you’ve already mapped out your budget for that epic upcoming road trip—nice work! You’re one step closer to turning your behind-the-wheel fantasies into reality and activating that out-of-office automatic email reply.

But if you did all the calculations and discovered you’re a lot more strapped for cash than you realized, you might be on the brink of reconsidering that late summer getaway. Fear not, financially-challenged adventurer: you can still put together a fun, fruitful escape that’s actually affordable. Here are some strategies.

How to Road Trip on Less Than $100 Per Day

• Choose wisely. Sure, landing in a major metropolis might sound like the most epic way to bookend your trip, but big cities like Los Angeles, New York, and San Francisco are notoriously expensive (which you might already know if the purpose of your trip is to try and get away from one of those places). Picking less popular points along the journey will inevitably save you money on everything from gas to food to lodging. For example: Napa Valley might call to your wine-loving heart and soul, but if you set your sights about 400 miles south, you’ll find plenty of amazing vino-themed attractions at a far lower rate. Go super simple and plan ahead, and you may be able to score a basic motel room for under $75 a night (leaving the rest for gas and food).

• Gas up on the go. Rather than fueling up in a big city (are you seeing a theme here?), stop for gas in small towns, where you’re more likely to save cents on the gallon. And do a quick search of the app store—there are several money-saving tools you can download directly on your phone that will help you locate the cheapest gas in your area. According to GasBuddy, the cheapest gas right now in California is $2.99 per gallon in Turlock. Rates per gallon in bigger cities like San Francisco and San Jose are close to $4. The most common cars in America have gas tanks that hold about 15 gallons, so just stopping at an off-the-beaten path station could save you about $15 (a full tank at $2.99 is about $44.85 versus $60 at the higher rate).

• Find free fun. It’s easy to blow a ton of cash on tourist traps, but if you do some advanced planning, you’ll find there are tons of totally free attractions, landmarks, and activities all throughout the country. Need some inspiration? Here’s a list of must-see landmarks to get you started! And if you don’t see your destination on the list, do some digging to see if local museums offer free days or if you can join a no-cost walking tour.

• Shop smart. The simplest way to kiss your dollar bills goodbye is by dining at a chain restaurant, diner, or mini-mart at every stop along the way. It’s totally possible to spend way less than $50 a day on food if you plan ahead and set yourself up for success. Packing snacks before you hit the road is your best option for curbing cravings and staying within your budget. Bring along items like pretzels, rice cakes, nuts, and dried fruit that will quell hunger pangs and keep you satiated between stops. And consider loading up a small cooler with heartier perishable items like hard-boiled eggs and yogurts. Not only can these items keep you going between meals, but they make for great ingredients for an on-the-go breakfast. Prices will of course vary depending on where you stock up on snack staples, but if you hit a major supermarket, you can definitely find a six-pack of yogurt, a jar of peanut butter, and a pack of bagels for well under $20—and that could be breakfast for days! Look for local eateries and avoid chain restaurants, and you can definitely get away with keeping costs low.

• Make sure you’re using Metromile. Even if you’re traveling long distances, pay-per-mile insurance makes perfect sense. That’s because Metromile charges a low monthly base rate as well as a pay-per-mile rate, capping customers’ daily mileage costs at 250 miles/day (150 miles/day in New Jersey). So if you hit that magic number, you’re still likely to save big bucks. Your personal rate will vary depending on a number of factors like your age, gender, location, driving history, etc., but if you’re driving less than 10,000 miles a year, there’s a good chance Metromile is the provider for you. And since you’ll be paying that low rate on a monthly basis, the impact on your daily budget will be pretty minimal (though that may not be the case for other traditional insurers).

Any chance you read that and decided it’s time to seriously reconsider your current car insurance provider? Awesome. It’s time to visit www.metromile.com and get your free quote today.

The time has come. You’re finally ready to trade in your old beater and treat yourself to a brand new car. You have an idea of what kind of car you want to get, but with every car dealership advertising their latest “deal,” it can be easy to get suckered into paying more than you should for your new whip. Because of this, it’s important to do your research and have a solid plan in place before ever stepping through the front door of the dealership.

So: how do you know how much your new car should cost? Then, with all the down payments, warranties, and dealership fees, how to do you if you can actually afford the car you want without blowing your budget? Don’t worry, we’ve got the scoop. Step into your future-new-car negotiation with confidence using our fool-proof tips.

How Much Should a New Car Really Cost, and How Do You Know If You Can Afford One?

Assess Your Assets

Before kicking your clunker to the curb, find out if the car has any trade-in value. Most car dealerships will take your old car as a trade-in, which will, in turn, knock the price of your new car down. The ol’ trade-in deal is a bit of a double-edged sword, however, because the car dealership will try to lowball you. Since most people are not in much of a position to negotiate the trade-in value of their current car, they are likely to take the deal presented to them.

Putting the trade-in deal firmly in the “pro” category is the fact that the dealer does all the paperwork. After you and the dealer settle on an acceptable price, all you have to do is sign the vehicle over to the dealership and be done with it. However – the price you pay for the convenience of being relieved of your vehicle will likely be less money for you than if you sold it yourself. The dealer will not give the full retail value of the vehicle and people are often disappointed by the offers presented to them. To avoid any surprises, be sure to get the Kelley Blue Book® Trade-in value of your vehicle before you step foot in the dealership.

Your Credit: The Good, The Bad, and The Ugly

Next up: addressing how you will be paying for your new vehicle. If you plan on financing your new car (90% of people take this route), your credit score will come into play. See, car dealerships assess how likely it is that you will pay your loan on time every month if you’re likely to skip payments, and more based on your credit history. If your credit score is looking less than stellar (above 700 is considered “good”), you’ll definitely need to factor that into your new potential payments. Your monthly payments may increase if your credit score has been looking a little worse-for-wear.

Calculate How Much You Can Afford

There’s no perfect formula to calculate how much you can afford, but our short answer is that your car payment should be no more than 15% of your monthly take-home pay. If you’re leasing, it should be no more than 10%. There are many online calculators that will help you crunch the numbers.

Did you know that the average new car payment is $499/month for 68 months? Most car loans come in well over $30,000, which is absurd considering the median household income is around $56,000/year. At the end of the day, it’s up to you to figure out how much you can truly afford to spend on a car. No matter what, don’t leave it up to the car salesman to decide how much you can borrow. Why? Because, according to their facts and figures, your credit and income may qualify you to buy just about anything on the lot.

In addition to the price of your new vehicle, remember that you’ll also need to cover license plates, insurance, and any additional taxes required by your state. Additionally, you’ll need to pay sales tax on your vehicle, although your lender may roll your taxes into your loan (if you ask).

In Conclusion

The reality is that true affordability is never dictated by lenders or big banks. At the end of the day, only you know how much you can afford to spend on a new car payment and your other bills.

Once you have an idea of how your monthly income and expenses look, you can shop for your new car with confidence. When decide to pull the trigger on your new ride, we’ll be here to take care of all of your car insurance needs! Be sure to grab a free quote from us – and happy car shopping.

Julianne Cronin is a Bay Area freelance writer, content creator, and founder/editor of the women’s lifestyle site, The Wink. You can find her working on her capsule wardrobe, collecting cacti, and trying out the latest beauty products on Instagram

It’s no secret that vacation planning can be headache-inducing. The logistics, scheduling, and reservations are painful enough to figure out, but then there’s that money issue. If you’ve decided to swap the sky-high cost of airfare for a more affordable car trip, you’re already on the road to big savings (all puns totally intended). But even if you’ve figured out the tricks for snagging sweet hotel deals and cutting corners to save cash, you’ll still be faced with plenty of financial decisions as you drive. The best way to avoid an unpleasant post-trip credit card bill is to set a realistic budget that keeps you in check while leaving room for plenty of fun—this is a vacation, after all.

Here’s how to calculate a daily road trip allowance:

1. See what you’re working with. To get the ball rolling, it’s best to know exactly how much money is in the pot, so to speak. To do that, take your monthly income and subtract all your expenses (car insurance, rent, phone bill, cable TV that you sadly won’t be watching while traveling, etc.). Once you have that leftover number, consider that your limit. Sure, you could charge outside your means, but that pretty much defeats the whole “traveling on a budget” concept. Unless you have a special savings fund to pull from, stick to spending within your monthly net income.
2. Figure out your fueling needs. The most obvious expense you’ll encounter on a regular basis is, of course, gas. If you’re traversing the country, it may be tough to pin down an specific price per gallon, since costs vary from place to place. Even if you can’t land on an exact dollar amount, you can take an educated guess and round up, just to be safe. And if you have no idea where the open road is taking you, just rely on the national average, which is currently $2.85 per gallon.

   Your total for the day will of course depend on your vehicle’s tank and the amount your driving per day. But for clarity’s sake, here’s an example: Some of the most common cars in America have gas tanks that hold about 15 gallons, and get up to 30 miles per gallon on the highway. If you’re driving from San Francisco to Los Angeles one day, that’s about 383 miles, which you should be able to do on one tank of gas (15 x 30 = 450 miles). Based on the national average, that’ll cost you about $43 if that’s all you’re driving in a day, but it’s worth rounding up to $50 to be safe (or more to be extra safe).

   A few more ways to save on gas:

   • Gas Buddy and Gas Guru are two apps that help you locate the cheapest fuel around.
   • Community-based app Waze offers real-time traffic information and gas prices. Be sure to keep your oil fresh, engine tuned, and tires inflated to ensure better mileage, and when you can, fill up outside of big cities, where prices are often way higher.

   And of course, if you’re a Metromile customer, you’ll want to make sure to keep an eye on your daily distance since you have the benefit of pay-per-mile coverage. If you’re worried about accruing a big bill because you’re traveling—relax. Metromile caps the daily mileage costs at 250 miles/day (150 miles/day in New Jersey). But if you’d prefer to stay under that limit, map out your daily route ahead of time, and make sure to pull over once you’ve hit that self-imposed max. Metromile charges a low monthly base rate as well as that pay-per-mile rate, so chances are, you’ll still save big—whether you’re driving all day or limiting your miles—just because you’re a Metromile customer. Congrats!

3. Factor in accommodations. This will of course vary tremendously depending on whether you’re camping, glamping, or going for full-out luxury (that last one probably shouldn’t be in the cards if you’re trying to save…but you knew that). While the current average daily rate for a U.S. hotel hovers around $127, that amount could fluctuate a ton. The good news is, there are plenty of ways to sidestep exorbitant hotel costs, so take advantage of every tip and trick you can ahead of time!
4. Eat economically. The simplest way to slip up and spend way more than expected is to fall into a “treat yo’self” mentality when it comes to food. Yes, you’re on vacation, but that doesn’t necessarily mean a steak dinner is in order every night (those four bags of chips at each rest stop may not be a great idea either). If you have no idea how to begin calculating an approximate food allowance, consider allotting $5 a day for breakfast, about $10 for lunch, and $15 to $30 for dinner. That should give you a fair amount of wiggle room without leaving you ravenous. But eating cheap doesn’t have to mean subsisting on an all-junk diet. Some ways to spend less that don’t involve drive-through at every stop:

   • Hit the grocery store. Better yet, before your trip, pay a visit to a bulk store and stock up on big quantities of wholesome car-safe snacks that don’t require refrigeration (think: rice cakes, pretzels, popcorn, etc.). And invest in a cooler to pack nutritious perishables (yogurt, string cheese, hard boiled eggs, etc.). The accessory will pay for itself when you realize how much you’ll be saving on road snacks.
   • Go halfsies. Traveling with family or friends? Consider splitting entrees when you sit down for meals. Portion sizes at most restaurants are way beyond single serving, and since you probably won’t be hauling leftovers with you, order a single meal for two.
   • Eat breakfast before you go out if you can. If you are staying in a hotel, you might just be able to score a free breakfast buffet. And even if that’s not the case, you can still make a pretty hearty morning meal without overspending at a diner. Oatmeal packets are awesome options to keep on hand (just add water!), and fruit, granola bars, and more can set you up with a solid base so you’re not starving by lunchtime.
   • Eat like a local. Talk to people around town and ask where they love to dine. Chances are, it probably won’t be at a chain restaurant. You’re more likely to find a delicious, affordable destination off-the-beaten-path if you do a little research.

If you’re not a Metromile customer, what are you waiting for? Visit metromile.com for a free quote today. Happy trails!

Michelle Konstantinovsky is a San Francisco-based journalist/writer/editor and UC Berkeley Graduate School of Journalism alumna. She’s written extensively on health, body image, entertainment, lifestyle, design, and tech for outlets like Cosmopolitan, Harper’s Bazaar, Marie Claire, Teen Vogue, O: The Oprah Magazine, Seventeen, and a whole lot more. She’s also a contributing editor at Fitbit and the social media director at California Home + Design Magazine. She is an avid admirer of shiny objects, manatees, and preteen entertainment.