Written by licensed insurance agent Andy walker
Reviewed by the Alias Insurance editorial team.
Pay as you go car insurance is available in much of the United States, but the exact product depends on the state and insurer. The clearest nationwide example is Nationwide SmartMiles, a true pay per mile policy that is currently available in every state except Alaska, Hawaii, Louisiana, Michigan, North Carolina, New York, and Oklahoma. Nationwide states that SmartMiles uses a base premium plus a variable mileage premium.
Other insurers add options in selected states. Mile Auto currently sells pay per mile insurance in Arizona, Colorado, Florida, Georgia, Ohio, Oregon, Tennessee, and Texas. Its current site says the policy uses mileage based pricing and that the company plans to expand to more states.
The practical answer is that most states have at least one current mileage based option through Nationwide SmartMiles, while seven states do not have SmartMiles. A state marked as unavailable for SmartMiles should not be read as a ban on usage based insurance. Another insurer may offer a telematics discount, a flexible payment plan, or a different mileage product.
Insurance laws, rate filings, eligibility, and company participation vary by state. Always confirm availability with the insurer or a licensed insurance professional before changing coverage.
What Counts as Pay As You Go Car Insurance?
Pay as you go is a broad insurance term rather than one national policy design.
The National Association of Insurance Commissioners describes pay as you go, pay as you drive, pay how you drive, and distance based insurance as forms of usage based insurance. These programs can use mileage and other driving data to help set premiums.
A true pay per mile policy usually has two parts:
- A base premium that applies even when the car is not driven.
- A variable charge based on miles driven during the billing period.
A broader telematics plan may track mileage but price coverage mainly through a discount based on driving behavior. That distinction matters when you compare products.
For a basic explanation of the category, read pay as you go car insurance.
Is Pay As You Go Insurance Legal in Every State?
There is no single federal rule that creates a one pay as you go policy for all 50 states. Auto insurance is regulated mainly at the state level. Insurers must follow each state’s rules for rates, forms, required coverage, underwriting, data use, and consumer protection.
The NAIC explains that usage based insurance links insurance costs to driving habits such as mileage, time of day, and hard stops. It also maintains a directory for every state insurance department.
A product can therefore be offered in one state and unavailable in another even when the same company sells ordinary auto insurance in both.
Availability can also change. A company may enter a state, stop writing new policies, change the tracking method, or revise a program after a state filing. Check current company terms before relying on an older article.
State by State Pay As You Go Availability
The table below uses Nationwide SmartMiles as the main national reference because Nationwide currently publishes a clear list of states where SmartMiles is not available. SmartMiles is not available in Alaska, Hawaii, Louisiana, Michigan, North Carolina, New York, and Oklahoma. All other states are listed here as having a verified SmartMiles pay per mile option, subject to underwriting and product eligibility. Availability was checked in August 2026.
| State | Verified Pay Per Mile Status | Current Note |
| Alabama | Available | SmartMiles verified |
| Alaska | SmartMiles unavailable | Check local insurers for other usage based programs |
| Arizona | Available | SmartMiles and Mile Auto |
| Arkansas | Available | SmartMiles verified |
| California | Available | SmartMiles verified with state specific rules |
| Colorado | Available | SmartMiles and Mile Auto |
| Connecticut | Available | SmartMiles verified |
| Delaware | Available | SmartMiles verified |
| Florida | Available | SmartMiles and Mile Auto |
| Georgia | Available | SmartMiles and Mile Auto |
| Hawaii | SmartMiles unavailable | Check local insurers for other usage based programs |
| Idaho | Available | SmartMiles verified |
| Illinois | Available | SmartMiles verified |
| Indiana | Available | SmartMiles verified |
| Iowa | Available | SmartMiles verified |
| Kansas | Available | SmartMiles verified |
| Kentucky | Available | SmartMiles verified |
| Louisiana | SmartMiles unavailable | Check local insurers for other usage based programs |
| Maine | Available | SmartMiles verified |
| Maryland | Available | SmartMiles verified |
| Massachusetts | Available | SmartMiles verified |
| Michigan | SmartMiles unavailable | Nationwide directs eligible drivers to SmartRide |
| Minnesota | Available | SmartMiles verified |
| Mississippi | Available | SmartMiles verified |
| Missouri | Available | SmartMiles verified |
| Montana | Available | SmartMiles verified |
| Nebraska | Available | SmartMiles verified |
| Nevada | Available | SmartMiles verified |
| New Hampshire | Available | SmartMiles verified |
| New Jersey | Available | SmartMiles verified |
| New Mexico | Available | SmartMiles verified |
| New York | SmartMiles unavailable | Check local insurers for other usage based programs |
| North Carolina | SmartMiles unavailable | Check local insurers for other usage based programs |
| North Dakota | Available | SmartMiles verified |
| Ohio | Available | SmartMiles and Mile Auto |
| Oklahoma | SmartMiles unavailable | Check local insurers for other usage based programs |
| Oregon | Available | SmartMiles and Mile Auto |
| Pennsylvania | Available | SmartMiles verified |
| Rhode Island | Available | SmartMiles verified |
| South Carolina | Available | SmartMiles verified |
| South Dakota | Available | SmartMiles verified |
| Tennessee | Available | SmartMiles and Mile Auto |
| Texas | Available | SmartMiles and Mile Auto |
| Utah | Available | SmartMiles verified |
| Vermont | Available | SmartMiles verified |
| Virginia | Available | SmartMiles verified |
| Washington | Available | SmartMiles verified |
| West Virginia | Available | SmartMiles verified |
| Wisconsin | Available | SmartMiles verified |
| Wyoming | Available | SmartMiles verified |
This table is a shopping guide, not a guarantee that a particular driver or vehicle will qualify. Nationwide states that details and availability can vary by state, policy effective date, underwriting company, and other factors.
Which States Have More Than One Verified Pay Per Mile Option?
Mile Auto currently lists Arizona, Colorado, Florida, Georgia, Ohio, Oregon, Tennessee, and Texas. Since Nationwide SmartMiles is also available in those states, drivers there have at least two current pay per mile providers to check, subject to eligibility.
Where several products are offered, compare the base premium, mileage charge, coverage, tracking method, and data rules. Two mileage policies can calculate the bill differently.
What About Alaska, Hawaii, Louisiana, Michigan, North Carolina, New York, and Oklahoma?
These seven states need extra care because Nationwide currently lists them as unavailable for SmartMiles.
That does not prove that every form of usage based insurance is unavailable.
A driver may still find a standard policy with a telematics discount. The program may track how much and how safely the person drives without charging a separate cost for each mile.
Michigan is a good example of why current information matters. Nationwide specifically states that SmartMiles is no longer available in Michigan and directs eligible customers toward SmartRide instead.
If you live in one of the seven excluded states, ask insurers three separate questions:
- Do you offer a true pay per mile policy?
- Do you offer a mileage based discount?
- Do you offer a telematics program that scores driving behavior?
Those are not the same product.
How Does Nationwide SmartMiles Work Across Most States?
Nationwide says SmartMiles is designed for low mileage drivers. The premium has a base portion and a variable mileage portion. The variable amount depends on the miles driven in the prior billing cycle.
Nationwide also states that SmartMiles can include a safe driving behavior discount of up to 10 percent after the first renewal, subject to state and policy rules. The safe driving discount is not available in California.
Most eligible drivers use a connected vehicle or a device to record mileage. Vehicle eligibility can matter, so confirm compatibility before buying a policy.
If you want to understand how mileage records affect billing, see how to track mileage for pay as you go car insurance.
Why Can Availability Differ So Much by State?
State insurance departments review insurance products under their own laws and processes. The NAIC’s SERFF information notes that participating jurisdictions manage insurance rates and form filings under state specific requirements.
Several factors can affect whether a mileage plan reaches a state:
- State approval of rates and policy forms.
- Rules governing telematics data.
- Company underwriting decisions.
- Vehicle tracking technology.
- Market size and insurer participation.
- State specific consumer protection requirements.
- Whether the insurer is accepting new customers.
The presence of ordinary auto insurance from a company does not prove that its mileage product is offered there. Allstate, for example, warns that its products, features, and discounts may vary by jurisdiction and underwriting company.
Does State Availability Mean You Will Qualify?
No.
A program can be available in your state while your personal application is declined or your car is not compatible with the tracking method.
Insurers can consider lawful rating and underwriting factors such as driving history, vehicle type, address, prior insurance, claims, coverage choices, and other state approved information.
A mileage product may also have technology requirements. Some programs need a compatible diagnostic port, an eligible connected car, or a smartphone with required permissions.
Do not cancel your current policy until the new insurer confirms your coverage and effective date.
Is Pay As You Go the Same as Pay Per Mile in Every State?
No.
The NAIC treats pay as you go as one variation within usage based insurance. The term can describe plans that use miles, driving behavior, or a combination of data.
Pay per mile is more specific. It usually means part of the premium is calculated directly from recorded mileage.
A driver comparing the two should read pay as you go versus pay per mile car insurance before assuming the terms are interchangeable.
Who Should Check State Availability First?
Pay as you go coverage is worth checking if your mileage has fallen because of remote work, retirement, public transit use, a lightly driven second car, or another change in driving.
Federal Highway Administration data shows that registered motor vehicles averaged 11,071 miles in 2024. That figure is a useful national context, not an insurer definition of low mileage. A driver who travels far less may have a reason to compare mileage pricing, but the base premium and other rating factors still matter.
How Should You Compare Pay As You Go Quotes by State?
Start with identical coverage.
A cheaper quote is not a fair comparison if it cuts liability limits, removes collision coverage, raises the deductible, or omits protection you need.
Check these items for every quote:
| Item | What to Compare |
| Base premium | Amount owed even with little driving |
| Mileage charge | Cost applied to recorded miles |
| Mileage cap | Whether miles over a daily limit are billed |
| Driving score | Whether braking, speed, time, or phone use affects price |
| Tracking method | App, plug in device, connected car, or odometer |
| Coverage | Liability, collision, vehicle damage coverage, and required state coverage |
| Deductibles | Your out of pocket share after certain covered losses |
| Data rules | What is collected and how it is used |
| State terms | Rules and discounts that differ by location |
| Total estimate | Expected cost at your normal monthly mileage |
Your state insurance department is the right public source for questions about insurer licensing, complaints, or state insurance rules. The NAIC provides a directory for all state departments.
Can Pay As You Go Insurance Save Money in Every State?
No.
Availability does not equal savings.
A low mileage driver may benefit if the base premium is competitive and the mileage charge stays low at the driver’s normal usage. A high mileage driver may pay more under a true pay per mile formula.
A telematics plan can also score more than mileage. Depending on the program, time of day, braking, acceleration, location, and other driving data may be considered.
Low mileage, predictable driving, and comfort with tracking can make the pricing model worth comparing.
What Privacy Questions Should You Ask?
The NAIC says telematics can collect mileage, time of day, location, acceleration, braking, cornering, and other data depending on the program.
Before enrolling, ask what data is collected, whether GPS is recorded, how long information is kept, whether driving behavior can change your price, and what happens if the app or device fails. Review the insurer’s current privacy notice because data practices can differ by company and state.
Frequently Asked Questions
Not through one verified national pay per mile program. Nationwide currently offers SmartMiles in most states but excludes Alaska, Hawaii, Louisiana, Michigan, North Carolina, New York, and Oklahoma. Other usage based programs may still be available in those states.
Nationwide states that SmartMiles is unavailable in Alaska, Hawaii, Louisiana, Michigan, North Carolina, New York, and Oklahoma. Its current program page presents SmartMiles as available outside those excluded states, subject to eligibility and state rules.
Mile Auto currently lists Arizona, Colorado, Florida, Georgia, Ohio, Oregon, Tennessee, and Texas. Availability can change, so confirm your ZIP code directly with the company before relying on a quote.
Insurers must meet state rules for rates, policy forms, underwriting, and consumer protection. A company can also choose not to market a product in a state. State approval and company participation can change over time.
Do not assume the policy will transfer unchanged. Tell the insurer before or as soon as you move and ask whether the same program is offered at the new garaging address. State minimum coverage rules and product availability can differ.
Possibly. A state may lack a true pay per mile plan from a particular company while still having telematics discounts from other insurers. Ask specifically whether the program charges per mile or simply uses driving data to calculate a discount.
Final Takeaway
Pay as you go car insurance is broadly available in the United States, but there is no single product offered under identical rules in every state. Nationwide SmartMiles currently gives shoppers the widest verified true pay per mile footprint among the official sources reviewed for this guide, with Alaska, Hawaii, Louisiana, Michigan, North Carolina, New York, and Oklahoma excluded. Mile Auto and other insurers add choices in selected states.
Use the state table as a starting point, then confirm your ZIP code, vehicle eligibility, coverage, mileage formula, privacy terms, and effective date directly with the insurer. Laws and approved insurance products vary by state, and availability can change after publication. A licensed insurance professional or your state insurance department can help with state specific questions. Alias Insurance can help drivers compare current car insurance choices while keeping coverage needs, mileage, and total expected cost at the center of the decision.
References and Sources
- Nationwide: SmartMiles Pay Per Mile Car Insurance
- Nationwide: SmartMiles Program Details
- Mile Auto: Pay Per Mile Car Insurance
- National Association of Insurance Commissioners: Understanding Usage Based Insurance
- National Association of Insurance Commissioners: Telematics
- National Association of Insurance Commissioners: Auto Insurance
- National Association of Insurance Commissioners: State Insurance Departments
- National Association of Insurance Commissioners: SERFF State Participation
- Federal Highway Administration: Highway Statistics 2024 Table VM 1
- Allstate: Terms and Product Availability
