American Family Insurance has partnered with Cambridge Mobile Telematics (CMT), a smartphone telematics company, to create the MilesMyWay auto insurance program that rewards drivers for driving less.
The app-based program is a pay-as-you-drive (mileage-based) telematics offering that allows drivers to earn rewards each month based on the exact mileage they drive, giving drivers the ability to adapt their auto policies to their changing driving habits due to the COVID-19 pandemic.
The program, which is built on CMT’s DriveWell smartphone telematics platform and uses its IoT Tag technology, will first be offered to eligible Arizona customers before rolling out to other operating states throughout 2021.
Policyholders can receive savings totaling up to 25% of their monthly premiums starting when an enrolled vehicle is driven less than 8,000 miles per year – or about 667 miles per month. Drivers won’t be penalized or charged more for driving more – they’re rewarded for driving less. Mileage is measured with the MilesMyWay app and a small windshield-mounted sensor paired via Bluetooth. The program is available to customers who drive less than the average of 10,000 miles annually.
“The COVID-19 pandemic continues to change consumer driving habits and consumers’ expectations of how they pay for their auto insurance,” said Jenny Sankovsky, American Family product strategy and innovation director, “The MilesMyWay app ensures that as customers’ habits change, so does our service.”
The program is different than other pay-as-you-drive coverages that change premiums based on an insureds monthly mileage. MilesMyWay customers know the maximum amount they will pay each month, with only their reward adjusting based on mileage. A policyholder will not be charged more if they exceed the 8,000 miles in one year, though this may spur a recommendation for policy adjustments to better fit customer lifestyle and needs.
Based in Madison, Wisconsin, American Family Insurance has been serving customers since 1927. The group sells American Family-brand products, primarily through exclusive agency owners in 19 states. The American Family Insurance group also includes CONNECT, powered by American Family Insurance (formerly Ameriprise Auto & Home), The General, Homesite and Main Street America. Across these companies the group has more than 13,500 employees nationwide.
At Cambridge Mobile Telematics was founded in 2010 and now powers 65 enterprise programs in more than 28 countries. The technology serves several million drivers a day through partnerships with insurers, rideshares, cellular carriers and car makers.
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