Porsche Auto Maker Offers Mileage-Based Auto Insurance in 2 States

June 26, 2019

Owners of Porsche autos now have their own Porsche auto insurance. The mileage- based coverage is available to all Porsche owners with vehicles 1981 and newer that are garaged in Illinois and Oregon. The company said it will be expanding its insurance benefit to additional states in the future.

The coverage is being offered in collaboration with Mile Auto, an Atlanta-based pay-per-mile auto insurance company that uses computer vision technologies to help low-mileage drivers save money. Mile Auto customers use their smartphones to report mileage once a month, and then they pay based on exact miles driven plus a base rate.

Mile Auto customers can simply take a photo of their odometer to submit their mileage instead of having to use tracking devices or always-on smartphone apps as is the case with other mileage-based insurance plans, according to Fred Blumer, CEO of Mile Auto.

Porsche Auto Insurance customers will also receive repairs with Porsche genuine parts, claims concierge service and agreed value coverage.

“Innovation has been at the core of Porsche’s success story for the last 70 years,” said Ross Dupper, president and CEO of Porsche Financial Services, the provider of leasing and financing products for Porsche in the United States. “The launch of Porsche Auto Insurance marks another innovation adding to the success of the next 70 years.”

Porsche is not the only automaker interested in providing its buyers with insurance.

Tesla Motors is launching its own insurance product that will be fronted by Markel Corp.’s subsidiary, State National, Insurance Journal reported last month.

Tesla founder Elon Musk has complained that Tesla customers are overcharged for insurance given the car’s safety features such as Autopilot. Tesla partnered with Liberty Mutual Insurance Co. in October 2017 to offer insurance called InsureMyTesla, but Musk has indicated he wants a new plan that rewards good drivers with lower insurance premiums.

Tesla’s safety claims have been challenged in several lawsuits, which blame fatal crashes on failures of the Autopilot system.

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