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MileMeter - First in the Nation to Offer Auto Insurance "Buy-the-Mile"
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| Copyright: | Business Wire | | Source: | Business Wire | | Wordcount: | 835 |
Business Editors/Insurance Writers
AUSTIN, Texas--(BUSINESS WIRE)--November 14, 2008--MileMeter, a licensed auto insurance carrier based in Dallas, joined with Texas National Organization for Women (NOW), The Environmental Defense Fund (EDF) and other environmental and urban interest groups to announce that Texas is now one of the first places in the world where drivers can buy auto insurance by-the-mile.
In announcing the statewide launch of this revolutionary “drive less; pay less” auto insurance, MileMeter invited consumers to go to www.milemeter.com to learn more and buy policies.
Designed for consumers who drive up to 12,000 miles per year, this fair and affordable car insurance option can save 25 percent to 75 percent on most policies. Drivers who will greatly benefit from MileMeter insurance include urban professionals who live near their work, those who use mass transit, car pool or work-from-home, or households that have more than one vehicle that aren’t driven frequently.
“MileMeter is fair, affordable and sensible. With our pay-by-mile program, customers who drive the least, have the most to gain,” explains Chris Gay, founder of MileMeter. “Our goal is to make buying car insurance simple, accessible and rewarding.”
Texas National Organization for Women (NOW) spokesperson Hannah Riddering said, “Texas NOW is gratified that MileMeter is offering an insurance alternative based on odometer miles, not on stereotype averages.” Riddering explained that NOW’s report showing that car insurance based on group averages breaks down in low-income zip codes persuaded Texas legislators to pass H.B. 45 in 2001. The law made changes to the transportation code and encouraged by-the-mile insurance for Texas.
EDF Senior Scientist Ramon Alvarez praised MileMeter’s by-the-mile insurance option and said, “Texas drivers now have a choice to do the right thing by their pocketbooks as well as by the environment.” Alvarez noted that MileMeter’s insurance gives drivers the opportunity to save money while also protecting the environment.
“MileMeter’s insurance by-the-mile leads to social and environmental benefits such as fewer tailpipe emissions, less toxic road runoff and less demand for road and parking lot construction,” added Gay. “Think of our insurance as another way to help reduce urban sprawl, improve our air quality and fight climate change.”
A Dependable Company and Simple Concept
To obtain MileMeter’s “by-the-mile” auto insurance, consumers can follow a simple, five-minute process on www.milemeter.com and receive an immediate quote. To purchase a policy, they can simply use a credit card, then print their “proof of coverage” insurance card and policy directly off the Web site.
Consumers can buy coverage in advance, in increments of 1,000 miles up to 6,000 miles. When their odometer reaches the end of that increment, they may renew as needed. Any unused miles expire after six months.
MileMeter handles customer service and claims very similarly to conventional insurers, through a U.S.-based call center and a national network of auto damage appraisers. MileMeter is the only insurance company in the United States to be licensed specifically to sell per-mile auto insurance.
MileMeter Trusts, Rather than Tracks Customers
MileMeter protects the privacy of its customers and uses no intrusive GPS or other vehicle-installed tracking technology. The cost per mile is dependent only on geography and the driver’s age as well as vehicle and coverage level. There is no credit scoring and no difference in rates for women versus men or for renters versus homeowners.
“Paying for auto insurance when a car is sitting in the garage just didn’t make sense to me,” Gay noted. “Obviously, cars need insurance for how many miles they are driven, not how many weeks or months they are owned.”
While Gay’s logic for creating a new model for auto insurance seems obvious, it took more than five years to develop its business model, for state regulations to permit the new approach and for investors and backers to sign on. All the pieces finally came together to allow the Texas launch.
Amazon.com named Gay and MileMeter a 2007 finalist in a national entrepreneurship contest which drew 900 entrants. The company was rated for its sound business model and ability for rapid expansion.
“MileMeter will eventually expand strategically to other states, as elected officials and insurance regulators understand and respond to the customer benefits of ‘by-the-mile’ insurance,” Gay added, noting that auto insurance is highly regulated at the state level and there is a resistance to change traditional insurance.
About MileMeter
Based in Dallas, MileMeter Insurance Company is the first and only auto insurance company in the United States to be licensed/admitted specifically to sell per-mile auto insurance. MileMeter is well-funded, deeply re-insured and offers conventional claims processing and customer service. The company’s management team, investors and advisors have extensive experience in auto insurance and have developed the processes and systems to enable its launch and expansion. MileMeter's novel methods and system are protected by more than 60 Patent Pending claims. www.milemeter.com
This is a news service of Thomson Business Intelligence Service ©2006. This content is for your personal use only, subject to Terms and Conditions. No redistribution allowed.
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