Auto Insurance by the Mile

[jinman]

The Dallas company is called "Milemeter" and their slogan is "Auto Insurance Buy The Mile." I saw this on the local news last night and went to their site to check it out. It seems they are licensed to sell insurance in Texas and are trying to be approved for other states. I checked what it would cost for a 12,000 mile-per-year policy and found it to be quite expensive compared to my current insurance. However, if you have a couple of farm vehicles you drive rarely on the road and have annual mileage below 1000 miles, this could be a really good deal. Some insurance companies don't care if you have a Sunday driver parked in your garage most of the time. To get it insured, you have to pay the full rate. This company would put pressure on the big auto insurance companies to rethink their policies.

Here's a link:

Buy the Mile Insurance

 

[LBrown59]

The Dallas company is called "Milemeter" and their slogan is "Auto Insurance Buy The Mile." I saw this on the local news last night and went to their site to check it out. It seems they are licensed to sell insurance in Texas and are trying to be approved for other states. I checked what it would cost for a 12,000 mile-per-year policy and found it to be quite expensive compared to my current insurance. However, if you have a couple of farm vehicles you drive rarely on the road and have annual mileage below 1000 miles, this could be a really good deal. Some insurance companies don't care if you have a Sunday driver parked in your garage most of the time. To get it insured, you have to pay the full rate. This company would put pressure on the big auto insurance companies to rethink their policies.

Here's a link:

Buy the Mile Insurance

That's the bum deal on insurance following the car rather than the driver or owner.

 

[CurlyDave]

I don't know how this works in Texas, but in both OR and CA, I can insure vehicles driven less than 5000 miles per year at a reduced rate through my regular insurance company.

 

[LBrown59]

I don't know how this works in Texas, but in both OR and CA, I can insure vehicles driven less than 5000 miles per year at a reduced rate through my regular insurance company.

But you still get taken compared to the fellow driving 1 car the same number of miles per year.

 

[Bird]

That's a new insurance pricing method I hadn't heard of. I used to drive 30k to 40k miles a year, but just don't have a reason to do that anymore. I just checked my records for 2008 and found we only drove the Ranger 3,877 miles last year and the Windstar 11,706 miles. I don't think I've driven that few miles in a year since I was 16. Insurance by the mile might be better for me, but of course, I'm always a little cautious with new companies. I know someone has to try them out for them to ever get started, but I'm not sure I want to be that someone.

 

[radman1]

My brothers farm truck, 1999 F250 4x4 Lariat costs $90 bucks a year for comp and collision if he uses it less than 5000 miles/year.

 

[Bird]

I just checked that insurance by the mile for 4,000 miles and they want a higher premium than I'm paying now for unlimited mileage.

 

[kenmac]

If I could find the same coverage that I now have for less $. I would change companies in a min. Seems all of is too high. One of those things that you don't need till you need it

 

[jinman]

I just checked that insurance by the mile for 4,000 miles and they want a higher premium than I'm paying now for unlimited mileage.

Yeah, Bird, now that I look at it, I think the only person who might save with them is somebody who lives in an apartment and rides public transportation to work while driving very little. As with many things, the facts don't bear out what their commercials imply. If you have your homeowner's insurance and multiple cars insured with the same company as we do, our rates are far below anything I saw on that site. However, competition is good and this will certainly give the big insurers something to think about.

 

[Bird]

If you have your homeowner's insurance and multiple cars insured with the same company as we do, our rates are far below anything I saw on that site.

Same situation here.

 

[George@MileMeter]

I loved reading your posts about MileMeter's new product.

I wanted to make sure that you are reading our quotes right....I went and quoted a 2005 Ranger truck using my home address in Carrollton, Tx and was able to buy 1000 miles of full coverage for six months for $80.00, therefore 4,000 miles would be $320 a year. (2,000 miles every 6 months). Liability would be about half of that, but it could change depending on age and your address.

I have seen some pretty good insurance from the big boys when coupled with homeowners...but thank you for checking MileMeter out. If we do our job, your insurance companies will have to stay on their toes to keep you all happy.

George@MileMeter

 

[jinman]

I loved reading your posts about MileMeter's new product.

I wanted to make sure that you are reading our quotes right....I went and quoted a 2005 Ranger truck using my home address in Carrollton, Tx and was able to buy 1000 miles of full coverage for six months for $80.00, therefore 4,000 miles would be $320 a year. (2,000 miles every 6 months). Liability would be about half of that, but it could change depending on age and your address.

I have seen some pretty good insurance from the big boys when coupled with homeowners...but thank you for checking MileMeter out. If we do our job, your insurance companies will have to stay on their toes to keep you all happy.

George@MileMeter

George, thanks for finding this and responding. It's pretty rare for people from the subject company to take an interest and respond in an open forum. I think you will find this website to be full of people who give well-thought-out opinions.

I do have a couple of additional questions for you. Are there any plans to offer multiple vehicle discounts? All the quote features on your website that I saw showed single-vehicle pricing. I admit that I did not look at everything on the site, so I could be mistaken. Also, how do you handle claims? Your website says you will "schedule an inspection," but it does not say you will send an adjuster or we have to bring the vehicle to you. I'm guessing that you have a mobile adjuster network like many other companies. Is that true?This is a concern because many of us live in very rural settings away from metro areas. A round-trip to Dallas for me would be 160 to 180 miles.

 

[George@MileMeter]

Currently, we aren't offering a multi-car discount. As we grow, you can expect that MileMeter will expand its product offerings.

Our claims support is the same as any other insurance company. Within 24 hours an adjuster will be on your doorstep to help with the claim. There won't be any need to drive to Dallas.

Thanks for the questions....this is a great blog.

 

[LBrown59]

I don't know how this works in Texas, but in both OR and CA, I can insure vehicles driven less than 5000 miles per year at a reduced rate through my regular insurance company.

That's not as good as it sounds if you insure more than one car.