MileMeter’s Chris Gray reports that the company is expecting to create a huge change in the auto insurance industry. The company is now ready to launch the pay-by-mile auto insurance system which does not use any tracking device.
Most auto insurance companies use a device that is usually plugged into a car’s on-board diagnostic port (OBD). Such device is then used to determine a driver’s eligibility for insurance discount. Gray reiterated that with the MileMeter, there is no need for such a device to be used to determine the driver’s eligibility for a discount.
MileMeter in Texas is a company engaged in online insurance business. It has plans of expanding to different states across the country. The company also plans to have more inclusive coverage options. Milemeter wishes to make these options available to their customers as soon as possible.
Chris Gray came up with the idea of an auto-insurance discount system without any tracking device in 2008. This year MileMeter offers the pay-by-mile auto insurance. This is in response to concerns by auto insurance buyers about the tracking device which requires them to pay additional fees – fees, which can be really expensive that it defeats the discount they are supposed to get. These concerns are pretty valid, Gray finally decided to institute a discount system for MileMeter without using the tracking device.
MileMeter’s insurance system allows its customers to pay insurance premiums covering approximately 6,000 miles. The discounts are then calculated after a given full-term period. Considerations for the discounts include the driver’s age, location, current odometer photos, type of vehicle, the model, etc. The customers are required to provide several information to the insurance company which will then be used to make realistic assessments on how the client drives their cars, how often they drive, and how risky (or not) the driver is. After such an assessment, MileMeter can decide whether a driver is entitled to a discount or not.
In a recent report, the company clarified that a person’s credit score or driving history do not affect a driver’s eligibility for discounts. However, just like any other insurance company, MileMeter can only provide discounts to people who are low-risk, Gray added. For example, drivers who are seldom on the road have a higher chance of receiving the maximum discount. Moreover, new clients can take advantage of auto insurance coverage, which has a lower premium.
With MileMeter’s new pay-by-mile auto insurance, Gray is optimistic that more drivers will be encouraged to join the company and practice safe driving.
