Wednesday, October 22, 2008

Pay By the Mile Car Insurance

So far MileMeter auto insurance is only available in Texas. Here is a quote from the company's website:

We were frustrated with car insurance, so we started our own company. After years of dealing with insurance companies as frustrated consumers, we decided we should stop our complaining. So we created car insurance that anyone can understand and anyone can afford. We like to think of MileMeter as "the cure for car insurance."

We believe in good stewardship, so we created auto insurance buy the mile. When a society drives less, fewer vehicle tailpipe emissions occur, fewer traffic accidents and injuries happen, and we can use fewer acres for parking lots. We've invested ourselves in creating a socially and environmentally responsible product that could improve our air quality, reduce our land impact, and improve traffic safety through the financial incentive to drive fewer miles.



It's pretty surprising that this concept is new. I hope the idea spreads across the country. I'm not so sure, however, about those patents he spoke of in the video. Actually, I hope he doesn't secure them (and he probably won't) if he is trying to actually patent the idea of "pay by the mile" insurance. More competition is always better for the public.

2 comments:

David said...

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they give you the best rates from lots of local providers"

CycloneCross said...

Progressive Insurance has a program called MyRate where you install a sensor in your vehicle.

"Your rate is based on factors including how you drive, how many miles you drive and what times of day you drive."

The MyRate program is currently available in 8 states (MI, and KY, but not in OH yet...)

I the idea behind both programs and I think they present a good idea for both insurance companies and for responsible consumers. Another idea might be better traffic enforcement, but that's a different issue.

I've recently begun following a blog at http://www.howwedrive.com/ I plan on buying the guy's book, but haven't yet (I might check the library first).