Environmental Defense Fund is praising MileMeter for recently launching a pay-as-you-drive (PAYD) insurance program in Texas that will reward low-mileage drivers with lower premiums than traditional, flat-rate insurance.
MileMeter, a licensed auto insurance carrier based in Dallas, announced its plan to offer auto insurance by the mile in Texas on Oct. 15. With this insurance product, people who drive less, pay less for insurance, said the company, which launched its new product in Dallas.
Environmental Defense Fund says with the launch of the MileMeter product Texans have a “by-the-mile” choice of auto insurance that gives drivers the opportunity to save money while also protecting the environment.
MileMeter’s product is designed for customers who drive up to 10,000 miles per year. The company said customers can save an average of 10 – 40 percent on most policies with the option. Drivers who will greatly benefit from MileMeter insurance include car poolers, stay-at-home moms, urban professionals, those who use mass transit or who work-from-home, or for households that have more than one vehicle that aren’t driven frequently, the company said.
Progressive Insurance has in the last five months also launched partial mileage-based insurance policies in seven states, offering 40 to 60 percent mileage-based discounts, according to the Environmental Defense Fund announcement. GMAC Insurance also offers up to 40 percent mileage-based discounts in several dozen states for motorists with On-Star equipped vehicles.
A Brookings Institution report released in July estimates that if PAYD were offered to all drivers, it would save two-out-of-three households an average of $270 per car, result in an 8 percent decline in driving, reduce driving-related damages by $50 billion to $60 billion, and cut carbon dioxide emissions and oil consumption, the not for profit group said.