Mile Auto Launches Pay-Per-Mile Insurance in Oregon, Illinois

November 8, 2018

Mile Auto Inc. has launched its pay-per-mile insurance product in Oregon and Illinois.

In a press announcement, Mile Auto said its pay-per-mile model can save low mileage drivers 30 percent to 40 percent over traditional rates, by charging customers only for the miles they drive plus a low monthly base rate.

The coverage is written on Lyndon Southern Insurance Company paper. Lyndon Southern is a member of the Fortegra family of companies. Both Lyndon Southern and Fortegra are based in Jacksonville, Florida.

Fortegra is a provider of credit protection, warranty and specialty underwriting products and services. It partners with MGAs on specialty coverages, according to information posted on its website.

According to Mile Auto’s announcement, rather than using tracking devices or always-on smartphone apps to monitor driving and mileage, Mile Auto asks drivers to simply use their smartphone to snap a photo of their odometer once a month. Through its patented computer vision technology, Mile is able to verify the vehicle and the mileage reading from only the photo.

The coverage is targeted to college students, urban commuters, retirees, remote workers and others who drive 10,000 miles or less a year.

Mile Auto offers the minimum liability coverages required by the state, with options for increased liability, comprehensive and collision as well as rental vehicle reimbursement and roadside assistance. Various limits and deductibles are available.

A policyholder’s base rate and per mile rate are based on standard insurance variables like driving history, location, vehicle type and use, age and gender, years of driving experience, credit history, and coverages and deductibles. The use of some variables may be limited by a state.

Mile Auto operates as an independent MGA, according to a company representative. The insurance is now available to drivers in Oregon and Illinois through independent insurance agents. Mile Auto said it will be expanding to other states in the near future.

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