It's not that people don't want to save for retirement, it's because they can't afford to.
MetroMile, a technology company that aims to unlock and make use of all the world's driving data, announced that it launched publicly and unveiled a car insurance product that charges drivers a per- mile rate for the miles they drive each month, delivering significant savings to lower mileage drivers.
According to a release, the company has raised over $4 million in funding from NEA, Index Ventures, First Round Capital and SV Angel. The insurance service is available in Oregon.
MetroMile provides drivers with a proprietary device called the Metronome that they plug into their car. The Metronome extracts valuable driving data and transmits it in real-time, providing an accurate report of miles driven. Using this data, drivers pay a few cents per mile plus a low base rate each month for full coverage car insurance. Only the number of miles driven is used to calculate the rate, not when, where or how someone drives. By paying only for the miles they actually drive each month, lower mileage drivers can save 20 -50 percent for protection equal or superior to traditional car insurance products. MetroMile drivers can also access detailed and valuable driving analytics through a simple online dashboard, helping them better understand their car use.
"There is a widening gap between high mileage and low mileage drivers," said Steve Pretre, CEO and co-founder of MetroMile. "Millions of people are making conscious decisions to bike, walk and use public transit more often, benefiting the environment and livability of our cities. Traditional car insurance pricing takes the money those people should be saving based on their reduced driving and uses it to subsidize people that drive more. That is unfair and we are setting out to change it."
The company noted that the MetroMile service is powered by a technology platform that has been developed over nearly two years. Combining new hardware, software, and cloud-based infrastructure, MetroMile's technology allows previously inaccessible driving data to be accessed, analyzed, and managed at a massive scale.
"Driving data represents an enormous, untapped opportunity," said David Friedberg, founder and Chairman of the Board at MetroMile. "We drive three trillion miles per year in the U.S. Accessing the data from every car's on-board computer system would yield approximately 300 Petabytes of data per year. That data can power valuable new services, like our per-mile car insurance product."
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