Pay-as-you-go car insurance is a recent option in the car insurance market. Instead of paying a set monthly premium, policyholders pay a rate based on miles driven.

New analysis of the the top ranked pay-as-you-go car insurance found that Nationwide ranked the best for several reasons, according to AutoInsurance.org.

The insurer offers a 40 percent discount based on good driving habits and coverage is available nationwide, while other top contenders only sell policies in a few states. Nationwide also doesn’t punish drivers for road trips, since mileage is capped at 250 miles a day.

Allstate takes the second spot for pay-as-you-go insurance.

The free car insurance online resource found that Allstate offered the cheapest option for high-mileage drivers who want to participate in this type of program. The insurer offers up to a 25 percent discount for good driving habits and, like Nationwide, caps the daily miles at 250, so driving 1,000 miles in one day during a road trip won’t result in a skyrocketing premium. However, Allstate’s program is only available in 21 states.

MileAuto came in third.

One of MileAuto’s best features is its privacy allowance. It does not require drivers to participate in monitoring through an app or installed device, a leading reason why people opt away from usage-based programs. Its per-mile rate is one of the lowest, but it does not offer a daily cap on miles, so drivers will pay for every mile they drive. Since it only writes policies in 11 states, most United States residents will be ineligible for coverage.

“People want to pay an insurance premium that accurately reflects their risk,” said Melanie Musson, a nationally recognized insurance expert with AutoInsurance.org. “If they don’t drive much, they don’t want to pay as much as someone who drives a thousand miles weekly.”