Best Car Insurance for Big Cities

Photo: commons.wikimedia.org

Continuing my coverage on insurance companies, we got another firm that is aiming at disrupting the insurance industry in the U.S. Did you know that about 65% of drivers pay higher premiums to subsidize the minority who drives the most? 

Metromile is a startup that is bringing new pay-as-you go type of the insurance. If you at least somehow into saving money, then you might know that many companies already offer similar services. Even the big traditional car insurance policy providers like Geico, Progressive and State farm already offer policies where the fees are influenced by how much you drive. However, Metromile is sort of new and trendy, should be great for techies. Essentially, it is an application for your smartphone and a special device. In order to track milage, Metromile provides users a free gadget that would collect some information about user’s commutes. Metromile Pulse, the tracking device, is equipped with GPS and an accelerometer. It allows the company to register sudden breaks and other dangerous behaviour in order to suggest how to improve safety. 

What is for the money, this auto insurance rates are the following. There is a base rate and a per-mile rate. Metromile charges a flat fee of $30 a month plus some cents per each mile driven. If you occasionally go on vacations with your car there is nothing to worry about. I mean, there are many things to worry about, but not overpaying-for-insurance-wise. With per-mile insurance, you are not charged for the miles you drive above 150 per day (and 250 per day in Washington).

Metromile also has some good news for Uber drivers. For customers in California, Washington and Illinois, there is a coordination of per-mile prices for Uber drivers. The premium is not increased, and Metromile does not charge  per-mile when drivers are on a call and are insured by Uber’s commercial insurance. 

After all, this might be the future of insurance. We can clearly now see a trend of insurance providers moving to mobile applications, whether it is insurance for homeowners and renters, or auto insurance. In case you would like to see how the app behaves, you can download the application for free and ask for a free Bluetooth tracking device without buying the policy. It might be done for attracting more customers, as a transition to something new does not happen very fast.