Modesto Auto Insurance Discusses a New Take on AUTO
INSURANCE: Pay by the Mile
Posted on Friday, July 18, 2014
After launching in Illinois, Washington, and Oregon, Metromile is expanding its pay-by-the-mile auto insurance to
California. The San Francisco company also unveiled a refreshed mobile app to give drivers insight into their vehicles and
Fresno, CA -- (SBWIRE) -- 07/18/2014 -- Metromile's insurance targets the two-thirds of American drivers, primarily
urban dwellers, who rack up fewer than 12,000 miles on the odometer each year. "There's a huge number of people who are
overpaying for their insurance," CEO Dan Preston told Fast Company. On average, the company says, Metromile drivers
save 50% to 60%, or about $500 a year, on their policies.
TRADITIONALLY, AUTO INSURANCE PROVIDERS MAKE MORE MONEY FROM LOW-MILEAGE DRIVERS,
WHOSE PREMIUMS SUBSIDIZE HIGH-MILEAGE DRIVERS.
Traditionally, auto insurance providers make more money from low-mileage drivers, whose premiums subsidize high-
mileage drivers. "We're applying a curve so that the amount of margin per customer is equal across the board," Preston
said. "It's a much fairer way of doing insurance."
This isn't the first time the insurance industry has turned to a variable-pricing model. Progressive's Snapshot, for example,
uses a device to track and analyze driving habits, such as how hard a driver brakes, and adjusts its rates accordingly.
Along with its launch in California, Metromile also debuted a new app to visualize car data. The app is able to track fuel
consumption, fuel levels, car location, and vehicle health by communicating with Metronome, a product that plugs into the
vehicle's on-board diagnostics port. Like a USB port for automobiles, the OBD II port exists on all vehicles manufactured
since 1996. Any driver in the four states in which Metromile operates can request a free Metronome via its website.
If the car is experiencing any issues, the app can help diagnose the problem. Users can also send along the app's notes to
one of Metromile's mechanics on staff, who then helps identify the issue and provides a repair estimate.
In San Francisco and Chicago, the app even sends drivers street-sweeping alerts to help them avoid parking tickets. The
company plans to roll out this feature to other cities.
"There's a lot of hassle associated with having a car in the city, so we're looking to make that easier," Preston said.
Savings of 30-70% are available so many users are happy with the results the new site has to offer.
About Modesto Auto Insurance
The http://www.caiautoinsurance.com/ company supplies immediate price reviews for vehicle insurance plans over the
Internet. This company networks with providers to locate the best annual prices for full coverage or liability plans. The
http://www.caiautoinsurance.com/ company supports daily use of its national locator system to display pricing to motor
vehicle owners. The company support for vehicle insurance, auto parts and other purchased services is helping more
consumers over the Internet this year. Please visit http://www.caiautoinsurance.com/car-insurance-modesto-ca/
Media Relations Contact
Modesto Auto Insurance