Calculator Inputs
Example Data Table
| Profile | Base Fee ($/mo) | Per-Mile ($) | Miles/mo | Coverage | Estimated Total ($/mo) |
|---|---|---|---|---|---|
| Commuter sedan | 18.00 | 0.055 | 900 | Standard | ~ 95–120 |
| Low-mile city driver | 22.00 | 0.060 | 450 | Minimum | ~ 55–80 |
| High-mile SUV | 25.00 | 0.070 | 1400 | Premium | ~ 160–230 |
Examples are illustrative. Real pricing depends on underwriting and local rules.
Formula Used
1) Monthly miles = Convert weekly, monthly, or annual miles to a monthly estimate.
2) Usage component = Per-mile rate × Monthly miles.
3) Rated subtotal = (Base fee + Usage component + Add-ons) × Rating multiplier.
4) Discounts apply multiplicatively: Subtotal × (1−d1) × (1−d2) …
5) Total monthly = (After discounts + Flat fees) × (1 + Tax rate).
Effective cost per mile = Annual total ÷ Annual miles.
How to Use This Calculator
- Enter your base fee, per-mile rate, and miles.
- Set driver, vehicle, coverage, and risk options.
- Add discounts, fees, taxes, and optional add-ons.
- Compare breakeven miles against a fixed monthly plan.
- Press Calculate Premium to see results above.
Mileage drives the variable share
In this calculator, the usage component equals per-mile rate multiplied by monthly miles. For example, $0.06 per mile at 800 miles adds $48 before rating. At 1,500 miles, it adds $90. This makes low-mile drivers more sensitive to base fees, while high-mile drivers are more sensitive to rate changes.
Rating multipliers shape the baseline
The rating multiplier combines age band, vehicle type, coverage level, deductible, credit tier, regional risk, garaging, driving experience, incidents, night share, commute days, vehicle value, mileage tier, and telematics. A multiplier of 1.20 increases every priced component by 20%. A multiplier of 0.95 reduces them by 5%, improving both monthly and annual totals.
Discounts work best as stacked percentages
Discounts are applied multiplicatively to avoid overstating savings. A 5% safe discount and 10% multi-policy discount becomes 0.95 × 0.90 = 0.855, not 15% flat. On a $140 rated subtotal, that yields $119.70 before fees and tax. This approach keeps results stable when adding multiple incentives.
Fees, taxes, and caps change the effective mile cost
Flat fees and taxes add cost that does not scale with mileage, raising the effective cost per mile for low-mile drivers. If you enable an annual miles cap, the model limits per-mile charging past the cap, which can reduce annual totals for heavy drivers. Minimum and maximum premium controls help model programs with billing floors or ceilings.
Use breakeven miles to compare plans
The breakeven miles estimate compares your pay-per-mile output to a fixed monthly plan you enter. If breakeven is 900 miles per month, driving less than 900 favors usage-based pricing under these assumptions, and driving more favors the fixed plan. Use the sensitivity table and curve to see how premiums move across mileage levels. Recheck miles quarterly, because seasonal commuting and trips can shift results. Saving five hundred miles per month can offset a higher base fee. Also test two per-mile rates, such as $0.05 and $0.08, to bracket realistic program ranges locally too overall.
FAQs
What does “pay per mile” mean here?
It combines a monthly base fee with a mileage charge. Your miles are converted to a monthly estimate, then the model applies rating factors, discounts, fees, and taxes to produce totals.
Why can my effective cost per mile look high?
Flat items like base fees, add-ons, and taxes do not shrink when you drive less. Low mileage spreads those fixed costs across fewer miles, raising the per-mile figure even if the monthly bill is modest.
How should I pick the per-mile rate?
Use a realistic range from your program materials, then test two or three scenarios. The sensitivity table and curve help you see how small rate changes scale across different mileage levels.
What is the breakeven miles number?
It is the approximate monthly mileage where the usage-based estimate equals your fixed-plan comparator. Below that point, the usage plan can cost less under the same assumptions; above it, the fixed plan can cost less.
Do discounts add up directly?
No. This calculator stacks discounts multiplicatively, such as 5% and 10% becoming 0.95 × 0.90. That avoids overstating savings when multiple discounts apply at the same time.
Can I model caps or minimum premiums?
Yes. You can set a monthly minimum or maximum premium, and optionally apply an annual miles cap logic. These controls help mimic programs that limit per-mile charging or enforce billing floors.