, “Milewise by Allstate” is a pay-per-mile insurance program that custom prices your insurance based on how much you drive, factoring in your driving habits. Low mileage and good habits pay off over time, decreasing your premium.

As a usage-based insurance plan, Milewise requires you to install in your car a small

telematics device

from Allstate called “Drivewise” that records vehicle information. Of course, it tracks your miles driven, but it also records your speed, braking habits, and the time of day.

Through the Allstate smartphone app, you can activate Drivewise and receive cashback on a semi-annual basis as a reward for your safe driving, according to

Allstate

. The app also enables you to access feedback on your driving, complete challenges for Allstate Rewards points, and use a crash detection feature that connects you with resources in case of an accident.

With Milewise, you pay a daily rate and a per-mile rate, which are charged to your linked debit or credit card upon completion of your trip, according to

Forbes

One Tucson, Arizona resident, Peggy Coleman, was able to save almost 50% on her yearly insurance using Milewise thanks to her low mileage and safe driving, Forbes explained.

Plenty of Americans have switched to pay-per-mile coverage during the COVID-19 pandemic as many have found themselves spending less time on the road. According to

Bloomberg

, 2020 brought Allstate a six-fold increase over 2019 in the number of Milewise-insured cars, and four times more policies.

If you work from home and no longer face

the dreaded commute

, or simply find yourself driving less than you used to, this program could be right for you.

Allstate’s Milewise availability by state

MORE:

Now Is the Right Time To Try Pay-per-Mile Car Insurance

Allstate Milewise pay-per-mile insurance is currently available in 18 states:

Indiana

Ohio

Texas

Arizona

Washington

West Virginia

Illinois

Massachusetts

New Jersey

Pennsylvania

Maryland

Delaware

Idaho

Oregon

Virginia

Florida

Wisconsin

Oklahoma

Other pay-per-mile car insurance plans and the telematics debate

MORE:

Allstate Drivewise vs Progressive Snapshot: Which is Better?

Plenty of insurance carriers now offer pay-per-mile or pay-as-you-go insurance, including Nationwide, Progressive, and State Farm, with average total savings ranging from 5% to 50%, according to Forbes.

Allstate’s Milewise insurance plan works similarly to other pay-per-mile plans, and there are a few considerations to keep in mind when deciding whether the program is appropriate for your lifestyle.

The topic of telematics is controversial, and a concern to those who are not comfortable with the idea of their insurance provider tracking their vehicle data and location.

According to Forbes, Peggy Coleman initially was concerned about a “Big Brother” type of situation, but changed her mind, arguing that smartphones already track us, regardless, and that the benefits of the program are greater than potential privacy issues.

Allstate assures consumers that "personally identifiable information" is never shared without the consent of the customer, as reported by Forbes. Allstate also says that drivers find the app-provided data helpful and are generally willing to share with insurance providers.

Ultimately, the decision is yours and should reflect your comfort level with the subject.

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Allstate