Mile Auto Review: Cheap, but Proceed With the Utmost Caution

Mile Auto offers cheap coverage to low-mileage drivers. However, it only offers coverage in five states, its customer service has numerous poor reviews, and the method for registering miles each month is clunky. For drivers who want per-mile coverage, read on to see if Mile Auto might be a good fit.

Mile Auto

Rating image, 3.00 out of 5 stars.

3.00/5

Bottom Line

Mile Auto sells cheap coverage for low-mileage drivers. But it doesn't offer traditional discounts, it only sells basic coverage, and it has very bad customer service reviews. The Better Business Bureau thinks it has gone out of business (although it is still selling insurance on its website), and there's a discrepancy in where it's offering insurance. While its website states that it offers coverage in 11 states, drivers can only input addresses from five: Arizona, Florida, Georgia, Oregon, and Texas. For these reasons, it's prudent to proceed with caution.

Pros

Affordable coverage
Doesn't track driving habits

Cons

Poor customer service reviews
No traditional discounts
No mobile app
Clunky model for reporting mileage
Could be facing financial difficulties

Full Mile Auto review

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Monthly premium costs

Drivers insured by Mile Auto will pay two different monthly charges. The first is a monthly base rate, which stays the same, and the other is a per-mileage rate. For example, if a driver has a $40 base rate and a $0.10 per-mile rate, they would pay $52 monthly if they drove 120 miles. While the base rate generally stays the same, the per-mile rate can fluctuate depending on how much a driver uses their vehicle.

Mile Auto uses a driver's history and profile to set the base rate, while the per-mile rate depends on how many monthly miles a driver puts on their vehicle. For instance, a driver could start out paying $0.10 per mile, only to start paying $0.14 per mile each month if they increase their monthly mileage.

Discounts

Mile Auto does not offer discounts, such as savings for good driving, getting paperless statements, or having safety devices installed in one's car. Instead, it offers low premiums upfront to drivers who don't frequently use their vehicles. Likewise, since Mile Auto doesn't track driving through an app or plug-in device, drivers aren't rewarded for good driving habits. The only discount drivers get is the upfront premium reduction for monthly low mileage.

Coverage

Policy types

Auto

At this time, Mile Auto only offers auto insurance. Unlike some other auto insurance companies, it doesn't offer coverage for boats, motorcycles, RVs, ATVS, and other recreational vehicles.

Coverage types

Bodily injury
Collision
Comprehensive
Personal injury protection (PIP)
Property damage
Rental vehicle
Uninsured/underinsured bodily injury
Uninsured property damage

Mile Auto offers very, very basic coverage. It doesn't offer roadside assistance, ride-hailing insurance, or medical payment coverage. While drivers can get the basic coverage they need to meet state requirements, they won't find any unique features, like custom parts and equipment coverage or mechanical breakdown.

Customer service and ratings

Mile Auto doesn't have great reviews on third-party websites. On Trustpilot, it has 2.6 out of 5 stars, while its Better Business Bureau rating has 1 star out of 5 stars. In fact, the Better Business Bureau even believes Mile Auto has gone out of business, due to the fact that mail sent to its headquarters was returned as "undelivered" in December 2021. While the company is still selling insurance through its website, it's not a great sign if the BBB doesn't even know the business still operates.

As far as its claims process goes, I have direct experience. In May 2023, I had basic coverage through Mile Auto. My car was parked on the street and hit by a driver late at night. Because it was later discovered that the driver was uninsured, I was covered under the uninsured property damage portion of my coverage.

It took two months before my vehicle was appraised and the settlement paid out. During that time, Mile Auto's customer service team was unresponsive and would sometimes take a few weeks before they responded to my questions. In fact, when I first called to report the incident, they neglected to file my claim. When I called a couple weeks later to check on its status, they had no record that my car had been hit.

In contrast, many insurance companies will let drivers check the status of their claims online or through a mobile app. But since Mile Auto doesn't have a mobile app, nor any way to check claims online, drivers have to contact the company directly to get an update. This can leave drivers in the dark as to where their claims are in the process, as well as frustrated when they don't get responses quickly.

Other insurance available

Unlike larger insurance companies. Mile Auto doesn't sell other types of insurance, like renters, home, or pet insurance. At this time, it only sells auto insurance.

Alternatives to consider

2024 Award Winner

Best for price conscious consumersGeico

Rating image, 4.50 out of 5 stars.

4.50/5

Get a Quote

Read our Geico review

2024 Award Winner

Best for low-mileage driversAllstate

Rating image, 4.00 out of 5 stars.

4.00/5

Get a Quote

Read our Allstate review

When looking for an auto insurer who offers cheap national coverage: Geico offers cheap coverage in all 50 states. While it doesn't have per-mile coverage, it does offer a slew of discounts, more coverage types, and better customer service.

When looking for a national auto insurer who also offers pay-per-mile insurance: Allstate offers pay-per-mile coverage in 17 states. It also has more coverage options than Mile Auto and more favorable customer service reviews.

Mile Auto summary

Mile Auto might be best suited for people who:

Want cheap car insurance
Live where Mile Auto sells coverage

Mile Auto is a budget-friendly option, but drivers should consider other pay-per-mile companies too. While getting cheap car insurance can help drivers save money, it might be worth paying extra to have a better customer service experience at times when drivers need it most.

Review sources

Our auto insurance rating methodology

At The Motley Fool Ascent, insurers are rated on a scale of one to five stars. We primarily focus on pricing, coverage options, and customer satisfaction; however, we also take into account features like unique discounts, online and app-based experiences, and branch access. Our highest-rated auto insurances generally include low costs, solid coverage, and high customer satisfaction.

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