That predicted boom means you’ll probably be hearing a lot more about this coverage option, from both “insurtech” startups like Metromile and Root and major insurers like Liberty, Nationwide, and Progressive that have rolled out national programs. Usage-based car insurance is expected to grow in popularity by a staggering 30% annually in the next few years, according to Transparency Market Research. Fortunately, answering a few key questions can help you predict in advance if making the switch is likely to work well for you. Car insurance based on how much, or how well, you drive can cost less than a traditional policy - but it may take months of driving before you can confirm that.
