Pay Per Mile Car Insurance

There are many things we pay as we go, but car insurance has not been one of them.

For example cable t.v. brought us HBO. Pay a little extra to get television programming no one else could get. Then it was renting VHS movies, followed by pay per video movies and events. If you were not interested you did not have to buy.

Now comes an interesting concept being tested in California by Metromile. They are bringing to the marketplace pay per mile car insurance products. 

Their thought is that people have changed the way they drive, but they are still being charged full price to insure their cars. According to U.S. Dot travel on all roads and streets dropped 3.1 billion miles in February 2013 compared to February 2012.

Metromile is proposing that people pay on a variable pricing model based on miles driven. Drive less then 10,000 miles a year and save around $500 a year.

With other products manufacturers attempt to keep the price constant by decreasing the size or quantity. This is similar.

Metromile is not looking at driving behavior such as how often you brake. Your price is based 100% on how many miles you drive. You can reward yourself for walking. taking the train, or staying at home more often.