Insurance is the ultimate bitter-sweet product. We curse having to pay premiums and thank the heavens when we receive a check after an accident. It is a necessary evil. Dallas, Texas-based, MileMeter is a new kind of automobile insurance. They will provide insurance on a per-mile-basis. Customers pay in advance increments of 100 miles. Once your odometer passes the pre-payed mileage, your insurance coverage runs out.
Implications - The pay-as-you-go car insurance is an interesting concept that is sure to draw in many potential customers. It is great for people who rarely drive or only drive to their workplace. Insurance by the mile was created as a way to potentially "reduce our environmental impact and to make insurance fair, accurate and affordable."
Key Themes Behind This Trend
- Pay-as-you-go Auto Insurance
- The concept of pay-as-you-go auto insurance provides an opportunity for insurance companies to capture and cater to customers who don't often drive.
- Usage-based Insurance
- Insurance companies can tap into usage-based insurance to disrupt the traditional insurance model and attract customers with unique needs.
- Environmental Insurance
- Insuring customers based on their mileage could aid in reducing environmental impact and foster innovation around sustainable insurance practices.
Where This Applies
- Auto Insurance
- The auto insurance industry has an opportunity to embrace the pay-as-you-go model to cater to customers with unique needs while fostering innovation around sustainable practices.
- Insurance Technology
- Insurtech companies can leverage usage-based insurance to drive innovation and reshape the traditional insurance market.
- Environmental Services
- The concept of environmental insurance opens up opportunities for companies within the environmental services industry to innovate and offer sustainable practices.
