Car Insurance Startup Lets Drivers Pay For Their Policy By The Mile

Car Insurance Startup Lets Drivers Pay For Their Policy By The Mile
Automotive

Car insurer Emil charges customers for insurance based on how much they drive and tracks it in real time, offering a tailored and flexible system reflective of drivers' car usage

Sara Roncero-Menendez
  • 25 october 2018

While there are many different factors that go into calculating the cost of car insurance, one German startup is experimenting with a method that uses mileage to figure out a fair price. Emil aims to be Germany’s first pay-per-mile car insurance, measuring car usage in real time through a dongle that plugs into the car’s diagnostics port.

The new method is targeted at drivers who drive fewer than 6,200 miles per year, which is nearly half of the German driving population. The idea is that as these drivers use their cars more or less, their rates will adjust to reflect actual usage rather than presumptions. Customers can track how much they’ve been driving on the Emil mobile app.

“We believe that insurance products that are offered today can be improved on different dimensions and want to change that by offering flexible and fair products tailored around customer needs. We have started with the German car insurance market where traditionally low-mileage drivers have subsidized the higher accident risk of high-mileage drivers which has led to an unfair insurance premium distribution,” Emil co-founder Bastian Knutzen tells TechCrunch.

Giving customers better data about their usage as well as making payments more flexible are designed to be attractive features for younger and also environmentally conscious consumers.

Emil

While there are many different factors that go into calculating the cost of car insurance, one German startup is experimenting with a method that uses mileage to figure out a fair price. Emil aims to be Germany’s first pay-per-mile car insurance, measuring car usage in real time through a dongle that plugs into the car’s diagnostics port.

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