Don't mess with driving - Texans can buy by-the-mile insurance rates
Photo of West Texas by longhorndave. Licensed under Creative Commons license 2.0.
We can all save fuel and emissions by cutting back how much we drive, but until now not many insurance companies haven't seen fit to reward us with lower rates if we put fewer miles on our cars. There have been a few percentage discounts if you live close to work, sure, and lots of hybrid discounts, but no plan where your bill and your odometer have a symbiotic relationship. Now, the MileMeter company in Texas has launched a pay-as-you-drive (PAYD) insurance program that offers infrequent drivers the chance to pay a lower premium. Of course, it's highly amusing to me that Texas - the second largest state in the Union, where every house is at least 100 miles from the neighboring house*, - is where you can get rewarded for driving less, but I'm glad we're starting somewhere.
* This might not be accurate.
[Source: Sustainable Business]
Reader Comments (Page 1 of 1)
brandon 7:13PM (11/18/2008)
Huh? At least in CA everyone does this already. Insurance rates are bracketed by how much you drive. Less than 5k miles, 8k, 12k, etc. Has been that way since as far back as I can remember.
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Phil L. 10:05AM (11/19/2008)
brandon -
But the brackets are pretty wide and there isn't a good way to enforce it. If you told your insurance company you're suddenly going from 15K miles a year to under 5K miles a year, they're not likely to believe you.
Some of these newer by-the-mile insurance rates involve using secured on-board GPS records to verify mileage (and possibly check on speeding, sudden acceleration/deceleration habits, etc.). It's GPS verification that makes some of these new approaches interesting - and possibly troubling, as well.
Brn 10:35AM (11/19/2008)
brandon, this way they can micro-manage it. We all know micromanagement is better!
;)
Sir.Vix 12:07AM (11/19/2008)
It's not worth it to do it in texas, the second largest state in the Union? Ya know, Texas, the second highest populated state in the union...that state with Houston, Dallas, San Antonio....and other 1+ Million cities?
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emily 4:44PM (11/20/2008)
MileMeter doesn't use tracking devices that infringes upon consumer privacy and raises the cost of insurance. It's a simple concept, drive less, pay less!
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