It&#39s Not Pay out-Per-View, It&#39s Spend-Per-Mile

It’s Not Pay-Per-View, It’s Pay-Per-Mile


MetroMile,, a usage-based insurer, has launched a pay-per-mile auto insurance model and is providing its platform to consumers in Illinois. Combining hardware, software, and a cloud-based infrastructure, MetroMile enables users to obtain driving data and insights on their driving habits right from their vehicles.

Drivers in Illinois will now be offered the same pay-per-mile option, that driver in California, Washington, and Oregon have been experiencing. These heavy-traffic states have been benefiting from the pay-per-mile to reduce insurance costs to monitor their mils driven rather than pay the traditional flat-rate fee. The MetroMiles smartphone app provides insights to help drivers save time and gasoline, diagnose check engine warnings, among other things. The Metronome device plugs into the vehicle’s OBD II (on-board diagnostic) port to wirelessly transmit car data.

According to a consumer survey by MetroMile, more than half of the Illinois respondents claim that high gas prices are a key motive toward driving less, and that nearly 30% of these respondents use public transportation due to this desire to save money. Realizing that motorists are driving less—by 3.1 billion miles in February 2013 compared to results of the previous year—MetroMile decided to bank on its solution as an alternative to helping reduce driver expenses. As a result, Illinois was bound to be included on MetroMile’s list as Chicago-area drivers drive less than 10,000 miles per year.

Research confirmed MetroMile’s thinking as the most important finding of the survey revealed that 66% of respondents would prefer to obtain a pay-per-mile insurance policy rather than pay an annual flat-rate.

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