Territory, Mileage, driving experience, “other factors”………these are risk characteristics that are used to price in most auto insurance rate plans and there’s nothing unique about this approach.
And, if someone needs to slam on their brakes to avoid a rear-end crash, it’s usually because either 1) they weren’t paying attention or 2) following too closely. Good luck Metromile, you’re going to need it!
It would seem logical that mileage driven in cities vs. highways would differ in cost. You would drive less miles on surface streets, but your accident risk is elevated.
Paying by the mile may get a bit expensive with gas prices down and more driving going on. How are they going to rate the Millennials texting while driving? Is that in the model?
They rate millennials the same way that Progressive rates millennials. In fact, they rate everyone the same way that Progressive rates them.
Metromile’s rate filings have all been “me too” filings, based on Progressive’s rates. The only major difference is that Metromile charges the premium on a per-mile basis.
Great idea and with a little tweak using credit score, driving history and garaging stats this will be a very effective way to price for car insurance. Only down size might be how to adjust paying for insurance as you mileage changes.
interesting approach but having been in this bus for twenty years every ins comp has to fight the sames unknowns – catastrophes, fraud and government intervention
even the smartest or most idealistic insurance person gets repeatedly slammed against the wall, so to speak
maybe they figure on using float like Berkshire likes so well
in the 60’s my brother got so many miles to drive to town and see his friends and then drive back to the farm — my dad used to check the odometer — if he drove around too much in town he would back up just enough (the odometer would reverse too) so he would be within the acceptable range….
Territory, Mileage, driving experience, “other factors”………these are risk characteristics that are used to price in most auto insurance rate plans and there’s nothing unique about this approach.
And, if someone needs to slam on their brakes to avoid a rear-end crash, it’s usually because either 1) they weren’t paying attention or 2) following too closely. Good luck Metromile, you’re going to need it!
It would seem logical that mileage driven in cities vs. highways would differ in cost. You would drive less miles on surface streets, but your accident risk is elevated.
They better file for a rate increase right away.
Paying by the mile may get a bit expensive with gas prices down and more driving going on. How are they going to rate the Millennials texting while driving? Is that in the model?
They rate millennials the same way that Progressive rates millennials. In fact, they rate everyone the same way that Progressive rates them.
Metromile’s rate filings have all been “me too” filings, based on Progressive’s rates. The only major difference is that Metromile charges the premium on a per-mile basis.
Great idea and with a little tweak using credit score, driving history and garaging stats this will be a very effective way to price for car insurance. Only down size might be how to adjust paying for insurance as you mileage changes.
Thanks for the lower gas prices, Obama.
interesting approach but having been in this bus for twenty years every ins comp has to fight the sames unknowns – catastrophes, fraud and government intervention
even the smartest or most idealistic insurance person gets repeatedly slammed against the wall, so to speak
maybe they figure on using float like Berkshire likes so well
in the 60’s my brother got so many miles to drive to town and see his friends and then drive back to the farm — my dad used to check the odometer — if he drove around too much in town he would back up just enough (the odometer would reverse too) so he would be within the acceptable range….