Tuesday, October 21, 2008

Dallas-based insurance carrier MileMeter offers unusual “by the mile” car insurance plan

By Pegasus News wire

MileMeter, a licensed auto insurance carrier based in Dallas, has enabled Texas to become one of the first places in the world where drivers can buy auto insurance by the mile. With this revolutionary insurance product, people who drive less, pay less for insurance. The company launched the new concept of auto insurance today in Dallas and invited consumers to go to www.milemeter.com to learn more.

Designed for customers who drive up to 10,000 miles per year, this fair and affordable car insurance option can save an average of 10 – 40 percent on most policies. Drivers who will greatly benefit from MileMeter insurance include car poolers, stay-at-home moms, urban professionals, those who use mass transit or who work-from-home, or for households that have more than one vehicle that aren’t driven frequently.

"MileMeter is fair, affordable and sensible. With our pay-by-mile program, customers who drive the least, have the most to gain," explains Chris Gay, Founder of MileMeter. "Our goal is to make buying car insurance simple, accessible and rewarding."

Customer Benefits of MileMeter

Cost – Average policyholder (who fits criteria) will save 10 - 40 percent per vehicle, some will save more. Additionally, multiple drivers in a household can also be covered for a single vehicle.

Convenience – All purchasing, including quotes and renewal options can be done quickly, online.

Customization – Cost and terms of the policy adjust to fit each policyholder’s individual situation.

Cash savings – Insurance by the mile gives you another way to offset the rising price of gas. If you’re trying to buy less gas, now you can also buy less auto insurance.

Environmental and social impact – MileMeter rewards those who drive less. MileMeter customers will reduce our environmental impact on society with less taxation for road maintenance and construction, less transportation congestion, less demand for parking lots, fewer traffic injuries, and fewer tailpipe emissions.

DOWNTOWNDALLAS President and CEO John Crawford said, "DOWNTOWNDALLAS is thrilled to welcome yet another new company to the Central Business District, particularly one with an urbanistic business model and mission like MileMeter. The concept of incentivizing the public to drive less with lower auto insurance premiums is very much in line with our mission to create an authentic 'live, work, play' environment that encourages people to walk more and drive less."

To obtain MileMeter’s "buy-the-mile" auto insurance, consumers can go to the Web site and follow a simple, five-minute process which will provide an immediate quote. If consumers want to purchase MileMeter’s policy, they simply use a credit card or their Amazon.com payments account.

Consumers buy coverage, in advance, in increments of as few as 1,000 miles and as many as 6,000 miles in any six-month period. When their odometer reaches the end of that increment, they will renew as needed, without tracking devices. Any unused miles expire after six months.

The cost per mile is dependent on geography and the driver’s age as well as vehicle and coverage level, there is no difference in rates for women versus men or renters versus homeowners. However, MileMeter CEO Chris Gay says most many coverages are under five cents a mile.

"Paying for auto insurance when a car is sitting in the garage just didn’t make sense to me," Gay noted. "Obviously, cars need insurance for how many miles they are driven, not how many weeks or months they are owned."

While Gay’s logic for creating a new model for auto insurance seems obvious, it took more than five years to develop its business model, for state regulations to permit the new approach and for investors and backers to sign on.

Amazon.com named Gay and MileMeter a 2007 finalist in a national entrepreneurship contest which drew 900 entrants. The company was rated for its sound business model and ability for rapid expansion. All the pieces finally came together to allow the Texas launch.

"MileMeter will eventually expand strategically to other states, as elected officials and insurance regulators understand and respond to the customer benefits of 'by-the-mile' insurance," Gay added, noting that auto insurance is highly regulated at the state level and there is a resistance to change traditional insurance.

Source: MileMeter

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Comments

Scott Doyle Verified

I dig it.

It's not simply for the consumer's sake, btw - by the mile means they have a much more accurate gauge of their exposure for particular categories of drivers. I imagine their actuaries salivate at the thought because, well, what the hell else do they salivate over?

If I didn't average well over these increments I'd certainly consider it. Although, I'd have a relative concern with solvency of the company. Not to mention, for the respectable few who have a personal umbrella policy...I don't see anything in their FAQ section indicating other carriers will allow them in the umbrella.

8 months, 2 weeks ago ( Link to this comment | Suggest removal )

Pavel Lishin Verified

Pretty brilliant. I wonder how many miles I drive a year... I guess I could calculate how long I've owned my car and see how much the mileage has gone up.

I should definitely look into this.

8 months, 2 weeks ago ( Link to this comment | Suggest removal )