I believe there has never been a private passenger program offering coverage that you pay for after-the-fact. So that assumes the insured will have to initially pay based on an estimated mileage for the policy term.
Then what? The insurer performs a retroactive audit like workers comp at the policy expiry? The insured would have to agree up front to pay any and all audit earned premium. Failure to pay the audit E.P. then lands the insured where? This promises to be real mess; just another unreasonable burden agents will not be compensated for.
Other carriers have done this in the past
CSE for one and found out with their discounts or low rates on miles driven they found 50% of the auto book drove less than 10,000 miles per year, what a suprise.
This won’t work either, Sorry Mr Poisner.
Great Job of State Farm trying to get press for a product that will not be used but it will get ree press and on the eve news. Here’s the the News Reporting: Hermits that drive 500/12= 41.6 /30 = 1.3 miles a day. For those of you that drive 1.3 miles a day and have no life and stay locked inside…….Do we have a deal for you! Commish….. Hope other companies do this? They are it’s called underwriting and puting pleasure use on the car.
Right, we did this years ago and guess what? The wolves guarding the hen house played with the mileage! We had agents who had 90% of their book at the lowest mileage rates even though over 3/4 of their book drove from Modesto to the Bay area 5 days a week to work. Oh I get it, now we will have to chip their cars to get this. Great! One more thing I have to learn to write a simple auto policy.
I believe St Farm will be using a monitoring device like Progressive’s My Rate. My fear is that is how all auto insurance will be rated in coming years.
I was wondering the same thing. Are they going to do a Progressive MyRate? That might not be a bad idea though. Other then that or having an agent physically inspect the car, I feel that it can open yet another door for insureds to lie to their agent to get a lower rate on their insurance. The three most common lies I get in my office are
1. I don’t have any tickets or accidents
2. No one else lives in the house besides me
3. I do not use my vehicle for business.
So I guess the next lie might be “I only drive 5k miles a year”
I believe there has never been a private passenger program offering coverage that you pay for after-the-fact. So that assumes the insured will have to initially pay based on an estimated mileage for the policy term.
Then what? The insurer performs a retroactive audit like workers comp at the policy expiry? The insured would have to agree up front to pay any and all audit earned premium. Failure to pay the audit E.P. then lands the insured where? This promises to be real mess; just another unreasonable burden agents will not be compensated for.
Other carriers have done this in the past
CSE for one and found out with their discounts or low rates on miles driven they found 50% of the auto book drove less than 10,000 miles per year, what a suprise.
This won’t work either, Sorry Mr Poisner.
Great Job of State Farm trying to get press for a product that will not be used but it will get ree press and on the eve news. Here’s the the News Reporting: Hermits that drive 500/12= 41.6 /30 = 1.3 miles a day. For those of you that drive 1.3 miles a day and have no life and stay locked inside…….Do we have a deal for you! Commish….. Hope other companies do this? They are it’s called underwriting and puting pleasure use on the car.
Whos going to monitor this? The agents, I cant imagine, are they personally going to inspect odometers every year.
Right, we did this years ago and guess what? The wolves guarding the hen house played with the mileage! We had agents who had 90% of their book at the lowest mileage rates even though over 3/4 of their book drove from Modesto to the Bay area 5 days a week to work. Oh I get it, now we will have to chip their cars to get this. Great! One more thing I have to learn to write a simple auto policy.
I believe St Farm will be using a monitoring device like Progressive’s My Rate. My fear is that is how all auto insurance will be rated in coming years.
I was wondering the same thing. Are they going to do a Progressive MyRate? That might not be a bad idea though. Other then that or having an agent physically inspect the car, I feel that it can open yet another door for insureds to lie to their agent to get a lower rate on their insurance. The three most common lies I get in my office are
1. I don’t have any tickets or accidents
2. No one else lives in the house besides me
3. I do not use my vehicle for business.
So I guess the next lie might be “I only drive 5k miles a year”
It’s not 5K its 500 5 Hundred is impossible to keep under unless you are in a area where walking is a option.