Paying car insurance by the mile


MetroMile is an auto insurance provider in the state of Oregon that has come up with a unique way of calculating the auto insurance premiums, based on the number of miles driven by the customer. An in-car sensor is fitted by the company to the car of the person who wants to avail the pay-by-mile insurance policy. It is this sensor that is responsible for logging the miles driven by the customers and this data is then used to calculate the auto insurance premium which is sent to the customers on a monthly basis, more on the lines of monthly utility bills. According to the company, a customer who drives anywhere between 5000 and 8000 miles annually can enjoy savings that range between 25 percent and 30 percent as compared to the other insurance policies that are available today.

There are other insurance providers in the country who offer similar policies, but there are many other aspects of the program that is being proposed by MetroMile that makes it different from the other such programs being offered by its competitors. In addition to assessing individual customer driving patterns, the sensor being fixed by MetroMile is also linked to the mobile phone networks as well as the on board computer in the car, thus allowing it to assimilate all the important information such as the performance of the car, the condition of the car and data related to car emissions and diagnostics. The objective of the company is to collate this data to educate subscribers about the best driving practices, identifying parts that need to be repaired and also increasing fuel efficiency.

Steve Pretre, co-founder and chief executive of MetroMile, said that the pay per mile auto insurance coverage encourages customers to use their cars sparingly. Speaking on behalf of this company which has its headquarters in California, he also said that this program can assist customers in making positive lifestyle changes. One of the main reasons for this company to pilot its program in Portland, Oregon is because this region is more open to trying out newer products and is also committed towards encouraging practices such as driving bicycles, walking and many more.