Metromile auto insurance

Overview

Metromile was the best-known pay-per-mile car insurer in the United States: drivers paid a monthly base rate plus a few cents for every mile driven, measured by a small device plugged into the car. Lemonade, Inc. bought the company in July 2022, and Metromile no longer operates as an independent insurer. Lemonade said at closing that the Metromile brand would "sunset over time" as customers moved to the Lemonade app.

What remains is the insurance company. Metromile Insurance Company, a Delaware-domiciled insurer licensed in 49 states, is a Lemonade subsidiary, and Lemonade's website says its property and casualty insurance is provided by Lemonade Insurance Company and Metromile Insurance Company. Its premiums are reported to the NAIC as part of Lemonade Inc Group, which NAIC's 2025 market share report ranked #104 among U.S. private passenger auto insurers. Drivers who want the Metromile style of mileage-based pricing today buy Lemonade Car, sold in 12 states as of October 2026.

History

Metromile was founded in 2011 in San Francisco to sell per-mile auto insurance, a form of usage-based insurance aimed at people who drive much less than average. It became a full-stack carrier, with its own insurance company, in 2016. Its plug-in device, the Metromile Pulse, sat in the car's diagnostic port and recorded miles driven along with speed, acceleration, hard braking, cornering and location.

On February 9, 2021, Metromile became a public company by merging with INSU Acquisition Corp. II, a special purpose acquisition company, and traded on Nasdaq. At the end of 2021 it wrote business in eight states: Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia and Washington. Its 2021 annual report said customers saved 47% on average compared with what they had paid their previous insurer.

Life as a public company was short. In November 2021 Lemonade agreed to buy Metromile in an all-stock deal, one week after launching its own car insurance in Illinois. The deal closed on July 28, 2022. Metromile shareholders received about 7.3 million Lemonade shares, valued at under $145 million at closing, and Lemonade gained more than $155 million of cash, more than $110 million of car premium and Metromile's driving and claims data. Metromile's stock stopped trading, chief executive Dan Preston joined Lemonade as a senior vice president, and most employees moved to Lemonade roles. Lemonade said that adding Metromile's driving-data models to its own platform would make Lemonade Car more precise and competitive.

Auto insurance coverage

Metromile policies offered the standard coverages: liability, collision, comprehensive and uninsured/underinsured motorist protection, with options that varied by state. Because the brand is being retired, the current product is Lemonade Car, which offers liability, collision, comprehensive, uninsured motorist and glass coverage, built-in roadside assistance, emergency crash assistance, and extras for electric vehicles such as charger coverage. Lemonade Car is not sold in every former Metromile state: Lemonade's October 2026 car list includes Arizona, California, Illinois, Oregon and Washington, but not New Jersey, Pennsylvania or Virginia.

Discounts and programs

Metromile's pricing was simple: a fixed monthly base rate plus a per-mile rate, so the bill rose and fell with the miles on the odometer. That model is explained in pay-per-mile car insurance: how the pricing works, and the pay-per-mile break-even calculator shows when it beats a conventional policy.

Lemonade Car carries on the low-mileage idea through its app rather than a plug-in device. It prices in mileage and driving behavior measured by the phone, offers safe-driving discounts after 30 days, and gives discounts for bundling with Lemonade renters or homeowners insurance, EVs and hybrids, safety features and paying in full. Lemonade also prices Tesla Full Self-Driving (Supervised) miles at about half the normal rate in some states. Anyone uneasy about location tracking should note that Lemonade's app collects more data than an odometer reading would.

Claims

Metromile handled claims through its app. Claims on policies now sold by Lemonade are filed in the Lemonade app, and the general customer line is 844-733-8666. Lemonade's 2025 and 2026 shareholder letters disclosed extra-contractual liabilities on car claims dating from before the acquisition, meaning costs above policy limits on older Metromile claims.

Ratings and reputation

No current AM Best rating for Metromile Insurance Company was found; Lemonade states that its insurer is rated A (Exceptional) for financial stability. Metromile was never ranked in J.D. Power's auto insurance or claims satisfaction studies, and Lemonade was not ranked in the J.D. Power 2026 U.S. Auto Insurance Study. Its insurance company is now backed by Lemonade's balance sheet and reinsurance program rather than standing on its own.

Who it suits

Metromile itself is no longer a brand to shop for. Its legacy matters mainly to former customers, who now deal with Lemonade, and to low-mileage drivers looking for the same kind of pricing. Those drivers can compare Lemonade Car, Mile Auto, which reads odometer photos instead of tracking location, and telematics programs from larger carriers. See digital-first car insurers: how the insurtechs work for the wider field.

• Strengths: Pioneered per-mile pricing for drivers who rarely drive; its insurance company and data live on inside a public insurer licensed in 49 states; successor product adds EV and Tesla FSD pricing.
• Weaknesses: Brand being retired, so no new Metromile-branded policies to compare; successor Lemonade Car sold in only 12 states and not in New Jersey, Pennsylvania or Virginia; app-based tracking replaces the old device; no AM Best rating or J.D. Power ranking.

How to contact Metromile