Paying for car insurance based on the miles you drive is a new and revolutionary concept. So new and revolutionary that we are currently the only company offering per-mile insurance in the United States! In this sense, we like to think of ourselves as trailblazers, offering a more fair and affordable insurance for low-mileage drivers. According to a recent study we ran (more coming soon), 65% of households drive less than 12k miles per year, so this could really benefit a lot of people. As pioneers of this new insurance model, we are always happy to clarify any confusion about how per-mile insurance works. So, to make things a little bit easier for those considering making the switch, here are the answers to some common questions our team receives. We’re all about hassle-free car ownership, after all!
Myth: My rates will go up if I speed or slam on the brakes.
No judging here- if you hit the gas pedal or slam on the brakes your rates will not be affected. We only measure miles, not behavior.
Myth: My driving data is sold to third-party companies so they can have information about where I am driving.
Myth: Per-mile insurance is directly related to the new “pay-as-you-drive” tax I’m hearing about in the news.
Although the phrases sound similar, the “pay-as-you-drive” tax that is being proposed in Oregon has nothing to do with per-mile insurance. With per-mile insurance, you only pay a low monthly base rate plus a per-mile rate for every mile driven. There will be no hidden fees or surprise taxes.
Myth: My per-mile rates will increase if I’m driving more than usual.
No need to worry if you are driving more than originally estimated. The amount of miles you drive have nothing to do with your per-mile rate. Your per-mile rate is fixed and will not be affected by increased driving, but your monthly bill might be a bit higher if you drove more than usual. We also don’t charge for miles driven over 250/per day (150 in certain states) so feel free to road trip as much as you want! (more…)