Auto insurance by the mile in Texas
Pay your auto-insurance based on miles you cover. Interesting, but will it be cheaper for Texas? Based on the ball park estimate given by MileMeter CEO, it could be.
"The cost per mile varies with the geographic area and the age of the driver, but a reasonable ball park for a 30-year-old driver and minimum coverage in a midrange urban ZIP code in Texas might be 4 cents per mile, MileMeter CEO Chris Gay says. Multiple drivers in a household can also be covered for a single vehicle.". If we take an average of 15000 miles per year, then that would only cost about $600. We really need to look at the type of coverage to see if this is cheaper than conventional.
But nonetheless, very interesting concept and would definitely workout if you are just about average driver in terms of miles you drive everyday.
Back in 2005, we covered Norwich Union's Pay-as-You-Drive program in the UK to charge consumers for auto insurance based on how often, when and where they use their vehicles. Starting in Texas, the United States will soon see a similar service for the first time thanks to MileMeter's "auto insurance buy the mile."
Source: Auto insurance by the mile