Supakorn Angaumnuaysiri // ShutterstockPay-per-mile car insurance: Is it worth it for low-mileage drivers? For many drivers, that means far fewer miles on the odometer, but they’re still paying for insurance plans built for heavy commuting. Instead of charging a flat rate based on estimated annual mileage, the insurer bills for the miles you actually drive. How pay-per-mile insurance worksTraditional car insurance sets premiums based partly on estimated annual mileage. Programs vary in how they track mileage, apply daily caps, and award discounts.