Milemeter -- Insurance by the Mile

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davew's picture
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Joined: Monday, November 20, 2006 - 20:13
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Milemeter -- Insurance by the Mile

These guys aren't started yet, but hopefully they will be up and running by May. The basic idea is auto insurance rates are set by many factors, but miles driven does not have a heavy weighting. It stands to reason that if two people have a similar demographic and driving style, the one who drives twice as much is twice as likely to have an accident. In effect people like my wife and I who drive almost not at all are subsidizing those who drive a lot and pay similar rates. Milemeter hopes to cherry pick these clients away from the major companies. The rates are not fixed yet, but they are estimating 5 cents a mile with a minimum of 2000 miles per year. This would suit me just fine dropping my insurance bill from $750 a year to $100. I'll take that action! Actually my hope is that Milemeter puts the fear into the majors and they start offering similar plans.

This also warms my heart from an environmental point of view. People who sign up for programs like this would be strongly motivated to drive less.

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