MetroMile is a car insurance service that offers a unique coverage arrangement for infrequent drivers–instead of having to pay a large blanket fee for coverage and other penalties, MetroMile offers a true “pay per mile” system by calculating your insurance costs each month based upon the actual miles you have driven, along with a low monthly base rate. The insurance was specifically designed for people who only drive 10,000 miles a year, and has launched with a pilot program in Oregon. Upon signing up, you are entitled to a bonus of 100 miles, and you get to earn more bonus miles for referring friends.
MetroMile explains the process behind their new insurance model:
MetroMile provides drivers with a proprietary device called the Metronome that they plug into their car. The Metronome extracts valuable driving data and transmits it in real-time, providing an accurate report of miles driven. Using this data, drivers pay a few cents per mile plus a low base rate each month for full coverage car insurance. Only the number of miles driven is used to calculate the rate, not when, where or how someone drives. By paying only for the miles they actually drive each month, lower mileage drivers can save 20 -50 percent for protection equal or superior to traditional car insurance products.