# Metromile **Source:** https://geo.sig.ai/brands/metromile **Vertical:** Insurance Tech **Subcategory:** General **Tier:** Emerging **Website:** metromile.com **Last Updated:** 2026-04-14 ## Summary SF pay-per-mile auto insurance pioneer acquired by Lemonade (NYSE: LMND) Jul 2022 for ~$500M; 49-state licenses and 500M+ trip dataset now powering Lemonade Car telematics competing with Root and Progressive Snapshot for UBI auto insurance. ## Company Overview Metromile was a San Francisco-based pay-per-mile auto insurance company — acquired by Lemonade, Inc. (NYSE: LMND) in July 2022 for approximately $500 million (about $200 million net of cash) — that pioneered telematics-based usage-based insurance (UBI) in the United States, providing low-mileage drivers with auto insurance priced at a low base rate plus a per-mile fee tracked by the Metromile Pulse device (an OBD-II port dongle that measured mileage and provided vehicle diagnostics). At the time of acquisition, Metromile held insurance licenses in 49 states and had accumulated over 500 million car trip records representing a significant telematics dataset for AI-driven auto insurance modeling. Founded in 2011, Metromile expanded from Oregon to eight US states before the Lemonade acquisition integrated its operations into Lemonade's AI-powered insurance platform under SVP Dan Preston (Metromile's former CEO). Metromile's pay-per-mile insurance model addressed the systematic cross-subsidization embedded in traditional fixed-premium auto insurance: a driver who commutes 5,000 miles annually and a driver who commutes 20,000 miles annually in identical vehicles in the same ZIP code pay nearly identical premiums under traditional actuarial pricing — despite the high-mileage driver creating 4x the accident exposure. Metromile's per-mile pricing (base monthly fee of $29-$40 plus $0.05-$0.07 per mile) accurately reflected individual risk exposure for the 70+ million American low-mileage drivers (under 10,000 miles/year) who were systematically overcharged by traditional flat-rate insurance. The Pulse telematics device provided the mileage measurement infrastructure plus additional driver behavior signals (hard braking, speed, time-of-day) that fed into Metromile's AI claims fraud detection and underwriting models. In 2025, Metromile's legacy continues within Lemonade's auto insurance business (Lemonade Car), contributing the telematics methodology and state licensing infrastructure that Lemonade uses for its behavior-based auto insurance product. The broader pay-per-mile and UBI insurance market that Metromile pioneered is now addressed by Root Insurance (NASDAQ: ROOT, behavior-based auto insurance), Progressive (NYSE: PGR, Snapshot UBI program), and Allstate Milewise (NYSE: ALL, Metromile-style pay-per-mile product) — legitimizing the market Metromile created. Lemonade's AI infrastructure (automating claims processing through AI claims adjustment) and Metromile's telematics expertise represent the combined capability that Lemonade is deploying to compete with Progressive and Root for tech-forward auto insurance consumers. ## Frequently Asked Questions ### What is pay-per-mile insurance? Pay-per-mile insurance is a type of usage-based auto insurance where policyholders pay a low monthly base rate plus a per-mile fee. It's designed for low-mileage drivers and calculates costs based solely on distance driven, not driving behavior. ### How does the Metromile Pulse device work? The Pulse device plugs into your car's OBD-II port and uses GPS technology to track your mileage. It transmits data to Metromile's servers and provides smart features like check engine light diagnostics, car location tracking, and trip data. ### What happened to Metromile? Metromile was acquired by Lemonade, Inc. in July 2022 for approximately $500 million. The company now operates as part of Lemonade's auto insurance business, with its pay-per-mile model and technology integrated into Lemonade's platform. ### Who founded Metromile? Metromile was founded in 2011 by David Friedberg and Steve Pretre in Redwood City, California. Friedberg served as Chairman while Dan Preston led the company as CEO from 2014 through the Lemonade acquisition. ### In which states did Metromile operate? At the time of acquisition, Metromile operated in eight states: Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington. ### What smart features came with Metromile? Features included street sweeping alerts, car health monitoring, check engine light diagnostics, car locator with GPS tracking, trip data including fuel economy, and automated collision detection. ### Did Metromile only measure mileage? No, the Pulse device collected various data including miles driven, speed, acceleration, deceleration, location, and periodic odometer readings. However, pricing was based solely on mileage, not driving behavior. ### How did Metromile's automated claims work? Metromile used data captured by the Pulse device and mobile app to settle claims, many of them automatically and instantly, without requiring extensive paperwork or investigation. ### What was Metromile's business model? Metromile offered direct-to-consumer pay-per-mile insurance and also licensed its digital insurance platform to insurance companies worldwide, providing technology for usage-based insurance programs. ### When did Metromile go public? Metromile went public in February 2021 through a SPAC merger with INSU Acquisition Corp. II, before being acquired by Lemonade in 2022. ### What happened to Metromile employees after the acquisition? Lemonade offered roles to about 80% of Metromile's team, though some executives and product/engineering staff were not retained. CEO Dan Preston joined Lemonade as SVP of Strategic Initiatives. ### How much funding did Metromile raise? Metromile raised over $114 million from leading venture capital firms and strategic partners before going public via SPAC merger in 2021. ## Tags b2b, b2c, insurance, mobile-first, saas, fintech --- *Data from geo.sig.ai Brand Intelligence Database. Updated 2026-04-14.*