Insurance by the Mile
Government statistics reveal that women and men have the same accident involvement rates per million miles driven. Regardless, men average more miles driven per year than women, which accounts for their involvement in more accidents per year.
Despite the importance of miles driven to accident involvement, insurers charge the same annual premiums to adult men and women as well as other low mileage groups.
One way to end group discrimination against lower mileage groups and individuals is to charge per-mile prices tied to individual odometer miles. A Texas-based auto insurance company is the first to do just this by applying per-mile prices, without installing vehicle-tracking devices. The development could be significant for other low mileage driver groups including specialty car enthusiasts.
MileMeter, a Texas-based auto insurance company, is the first to do just this by applying per-mile prices to the miles recorded on the odometers of individual cars. For now, this coverage is only available in the Lone Star state, but the company is looking to expand soon.
The application process can be handled online. The policy issued covers you for six months and is valid for the number of miles that you pay for. You can “top up” your miles online. Establishing your mileage rate consists of simply uploading a digital photo of your driver’s license near the vehicle odometer. Future random requests for another photo will maintain your insured status.
Per-mile rates are based only on driver age, residence location and vehicle type, enabling customers to complete the online quote process in as little as five minutes. At this time, vehicles up to 15 years old are eligible for Comprehensive & Collision coverage. There is a 1000-mile minimum per contract period; otherwise unused miles can be “rolled over” to the next period.
The company maintains a less-than-predatory approach to minor transgressions or lapses. From their web site, they explain: “Let’s say you buy a 2,000 mile policy. A few months later, you take a surprise road. By the time you get back, you notice – wow – you’ve driven 2,100 miles already. The next day you have an auto accident. With MileMeter 2.0, you’re still covered! The claim will still be handled as quickly and efficiently as possible and in the meantime just log on so you can buy more miles!”
According to the company, an “average” rate is around five cents per mile, opening the possibility that you could insure your playtoy for as little as fifty dollars a season.