The bottom line is that PPM car insurance policies are ideal for vehicles that stay home most days.
Is PPM Car Insurance Good for High-Value Antiques or Show Cars?
No. Pay-per-mile car insurance is not usually the best choice for high-value show cars or valuable antiques. Even though these vehicles are considered low-use, their high values mean they should be insured with a specialty auto policy or parade / show car policy.
It might be tempting to save money by purchasing a PPM policy for show cars and antiques because these cars don’t get driven much. However, you would risk depreciation by the insurance company in the case of a loss.
If a garage fire destroys your custom, rebuilt 1955 Chevy hotrod that’s valued at $40,000, a pay per mile policy may only pay the standard blue book value. That might only be a few hundred dollars on a 65 year old car. You’d be taking a loss around $39,000, and you certainly wouldn’t be able to replace that vehicle.
But for a general use vehicle, a PPM policy might be ideal. You can purchase all the usual coverages and policy add-ons to make a robust insurance policy.
What Coverages are Standard?
If you’re considering the switch to pay per mile insurance, know that:
- Standard coverages like collision and comprehensive are available.
- In most states, a consumer could also choose liability coverage only. This is only appropriate if you own the car outright, and won’t be acceptable to a lienholder.
- Many valuable add-ons, like glass coverage, rental car coverage, roadside assistance and towing are available with pay per mile car insurance policies.
How Much Does Pay Per Mile Car Insurance Cost?
Ultimately, your monthly cost for pay per mile car insurance will depend on how much driving you do, your driving history, and any other bundles or discounts.
