MileMeter Insurance is the first company in the world to offer price-per-mile insurance coverage. The company was founded by Chris Gay in 2004 after a change in Texas legislation, allowing for price-per-mile coverage versus the traditional price-per-year policies. By 2008, the first pay-by-the-mile policy was issued, but only after Chris Gay won Amazon.com‘s start-up contest and subsequently received seed capital of over $7 million in 2007 to get the company up and running. It was perfect timing as he was about the throw in the towel and give up completely due the declining economy.
How does MileMeter Insurance work?
With MileMeter Auto Insurance, you are covered for six months at a time, but you are only billed by the mile. So, the less you drive, the less you pay. This type of policy is best for those who drive less than 12,000 miles per year.
When you buy your policy, you pay in increments of 1,000 to 6,000 miles at a time. You are free to buy more miles any time during your six month policy. If at the end of your six month policy you have gone over your miles, you simply need to bring your account in balance by purchasing more miles. There is no penalty for going over your miles.
What happens to the unused miles I purchased?
When it comes time for renewal, the dollar value of your unused miles will be transferred to the new policy. This is of course subject to a 1,000 mile minimum earned premium per six months. (For example, if you bought 3,000 miles and used zero, then 2,000 miles will transfer to your new policy.)
How are your miles tracked?
MileMeter Insurance respects your privacy and does not use electronic tracking devices to monitor you driving. Instead, they put trust in you, the customer, and ask you to help out by taking a digital photo of your odometer with your drivers license in the photo, and upload the photo to their website. You are required to do this at renewal and randomly, MileMeter Auto Insurance may ask for another photo for statistical purposes.
Additionally, at no time will MileMeter Insurance ask for your Social Security information and they do not conduct credit checks. They value their customers privacy and do not believe that credit checks or Social Security numbers are relevant to the service they provide. And at no time will they share, publish, or sell any information you provide them with anyone else.