
Milemeter: Buy Your Insurance By the Mile - terpua
http://radar.oreilly.com/archives/2007/12/milemeter_buy_y.html
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pchristensen
Several urban/economic studies have shown that if insurance was added to
gasoline (about $.45/gal I think), it is cheaper for almost all people,
prevents the uninsured motorist problem, and is more equitable. I think this
is a move in that direction, although as a single small company it can't solve
the uninsured motorist problem of course. Hopefully it can get people used to
pay by the mile so we can more towards a more sensible solution.

[http://www.google.com/search?q=pay+at+the+pump+auto+insuranc...](http://www.google.com/search?q=pay+at+the+pump+auto+insurance)

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aquaphile
Thanks for all the interest in MileMeter! To address some of the comments:

1\. Pchristensen -- While MileMeter can't solve the uninsured motorist (UM)
problem single-handedly, we can put a dent in it. Many uninsured motorists are
uninsured due to insurance affordability. Some low-income drivers must choose
between purchasing groceries and legal compliance (see papers at
<http://centspermilenow.org>). In my opinion, legal enforcement of UM laws is
capricious unless an affordable compliance solution exists. Simply by pricing
by the mile, MileMeter insurance should lessen the affordability problem and
beneficially impact UM driving.

2\. Anamax -- The correlation between vehicle miles traveled and accidents is
roughly linear when all else is held equal (age, location, vehicle, etc). For
every mile you drive you have roughly the same probability of becoming
involved in an accident.

3\. Spolsky (Joel?) -- Despite what insurers request as part of the
underwriting process, no auto insurance product currently in existence uses
your mileage as a principal rating or pricing factor. Trust me on this one :)
Part of the problem with existing insurance companies is their lack of rating
and pricing transparency: obfuscation favors the insurer, not the consumer. By
pricing by the mile MileMeter hopes to address several industry flaws at once,
and provide an intuitive product to consumers.

4\. MileMeter does not use tracking devices.

5\. ZipCar (now merged with FlexCar) is an excellent service. We hope to work
with them one day.

-Chris (of MileMeter)

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mynameishere
Nice idea. I drive about 500 miles a year.

Now that I think about it, this will give people an incentive to drive their
cars less, which can only be a bonus.

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spolsky
Have y'all ever BOUGHT car insurance?

It IS priced by the mile, approximately-- you have to tell them where you
drive and how often, including the approximate distance to work if you
commute, and your insurance is priced accordingly.

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dag
New startup idea: Take whatever USA-specific startup ideas are on the web and
reimplement them in Canada.

Works for any values of location and alternate_location.

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run4yourlives
New? I've been thinking about this for years!

One of the problems though is that Canada's biggest market is the US. 35
Million people doesn't bring a heck of a lot of VC.

If you go Canada only, you need to modify your objectives.

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edw519
Finally! Car insurance for hackers! I dial in to clients for about 95% of the
work and work on my startup from home. A quick back of the envelope
calculation would reduce my bill by about 80%. Can't wait.

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carpal
I live in the city and drive about 50 miles a month, while paying about $150 a
month for insurance. This will be a Godsend for me. I can't wait.

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joshwa
Perhaps zipcar or similar would be a better solution?

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carpal
(late, I know)

There are several Flexcar locations in my city, but the nearest is about a 1.5
mile walk. Not really convenient =(

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mhb
Interesting. I thought women drivers paid lower rates because they have fewer
accidents. Not so?

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run4yourlives
I don't think it's fewer, I think it's that they're less likely to be at
fault.

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rms
Yeah, this seems great. I wonder if it will be available in all states.

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anamax
Risk isn't linear in miles driven.

