Milewise by Allstate

Milewise by Allstate

Milewise by Allstate is a pay-per-mile car insurance program offered by Allstate Insurance in the United States. It’s designed for drivers who don’t drive frequently and want to save money by paying based on the actual miles they drive rather than a fixed premium.

What Is Milewise?

Milewise is a usage-based car insurance option that combines a daily base rate with a per-mile rate. Drivers install a small telematics device or use a connected app that tracks their mileage. At the end of each billing period, Allstate calculates the total cost based on the number of miles driven.

This model benefits low-mileage drivers, such as remote workers, retirees, and city residents who only use their cars occasionally.

How Milewise Works

Milewise tracks how much you drive and bills you accordingly. Here’s how the pricing structure typically works:

• Daily Base Rate: A small flat rate charged per day, even if you don’t drive.

• Per-Mile Rate: An additional cost per mile driven, recorded by the connected device.

For example, if your base rate is $1.50 per day and your mileage rate is $0.06 per mile, a day with 20 miles driven would cost:
$1.50 + (20 × $0.06) = $2.70 total for the day.

You can monitor your mileage, trips, and estimated costs through the Allstate Mobile app.

Who Benefits from Milewise

Milewise is best suited for:

• Drivers who use their cars infrequently (less than 8,000–10,000 miles per year)

• Remote or hybrid workers who commute less often

• City dwellers who rely on public transportation most days

• Households with multiple cars but only one vehicle in regular use

Drivers who log high annual mileage may not save money with Milewise compared to a traditional Allstate auto policy.

Why Mileage Tracking Still Matters

Even though Milewise automatically tracks miles for billing, it’s different from IRS mileage tracking used for tax deductions or business reimbursements.

If you’re a self-employed professional or use your personal car for work, you’ll still need a dedicated mileage tracker app like MileageWise to log business trips separately from personal miles. These logs can help you:

• Claim mileage tax deductions

• Prepare IRS-compliant mileage reports

• Ensure accuracy if you ever face an IRS audit

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