Milemeter: Buy Your Insurance By the Mile

Several urban/economic studies have shown that if insurance was added to gasoline (about $.45/gal I think), it is cheaper for almost all people, prevents the uninsured motorist problem, and is more equitable. I think this is a move in that direction, although as a single small company it can't solve the uninsured motorist problem of course. Hopefully it can get people used to pay by the mile so we can more towards a more sensible solution.

http://www.google.com/search?q=pay+at+the+pump+auto+insuranc...

Thanks for all the interest in MileMeter! To address some of the comments:

1. Pchristensen -- While MileMeter can't solve the uninsured motorist (UM) problem single-handedly, we can put a dent in it. Many uninsured motorists are uninsured due to insurance affordability. Some low-income drivers must choose between purchasing groceries and legal compliance (see papers at http://centspermilenow.org). In my opinion, legal enforcement of UM laws is capricious unless an affordable compliance solution exists. Simply by pricing by the mile, MileMeter insurance should lessen the affordability problem and beneficially impact UM driving.

2. Anamax -- The correlation between vehicle miles traveled and accidents is roughly linear when all else is held equal (age, location, vehicle, etc). For every mile you drive you have roughly the same probability of becoming involved in an accident.

3. Spolsky (Joel?) -- Despite what insurers request as part of the underwriting process, no auto insurance product currently in existence uses your mileage as a principal rating or pricing factor. Trust me on this one :) Part of the problem with existing insurance companies is their lack of rating and pricing transparency: obfuscation favors the insurer, not the consumer. By pricing by the mile MileMeter hopes to address several industry flaws at once, and provide an intuitive product to consumers.

4. MileMeter does not use tracking devices.

5. ZipCar (now merged with FlexCar) is an excellent service. We hope to work with them one day.

-Chris (of MileMeter)

Nice idea. I drive about 500 miles a year.

Now that I think about it, this will give people an incentive to drive their cars less, which can only be a bonus.

Have y'all ever BOUGHT car insurance?

It IS priced by the mile, approximately-- you have to tell them where you drive and how often, including the approximate distance to work if you commute, and your insurance is priced accordingly.

New startup idea: Take whatever USA-specific startup ideas are on the web and reimplement them in Canada.

Works for any values of location and alternate_location.

Finally! Car insurance for hackers! I dial in to clients for about 95% of the work and work on my startup from home. A quick back of the envelope calculation would reduce my bill by about 80%. Can't wait.

I live in the city and drive about 50 miles a month, while paying about $150 a month for insurance. This will be a Godsend for me. I can't wait.

Interesting. I thought women drivers paid lower rates because they have fewer accidents. Not so?

Yeah, this seems great. I wonder if it will be available in all states.

Risk isn't linear in miles driven.