As IP-to-location services are not 100% accurate by definition, we use a premium IP-to-location API in order to provide the maximum accuracy we can.
We’ve been asked from time to time why we don’t add the option to use a free geolocation database. Naturally, since the free databases are less accurate than the paid ones, and because there are many other plugins that allow this option, we see no point in adding this option.
In the next few months, we are planning to add a second geolocation service to choose from, so that you, as a site admin, will have the option to use the one you find more accurate in your country. The usage of the second service might involve extra costs.