Based in San Francisco, California and founded in 2011, Metromile has been disrupting auto insurance industry by providing users with a pay-per-mile insurance solution and a driving application. By using a device called Metromile Pulse which is hooked up to your car’s diagnostic port, the company keeps tracks of your miles to determine insurance premium. In addition, the Pulse records your driving routes and advises accordingly how to optimize travel time and gas usage. More interestingly, Metromile won’t charge you more than 150 miles a day if you go for a road trip. In terms of coverage structures, Metromile offers the same as other auto insurance companies. In terms of pricing, you get charged monthly by the actual miles you drive plus a fixed rate determined by your driving history, age and coverage selection. Despite those benefits, the claim process has been reviewed to be slow, troublesome and not satisfactory.
Thus, Metromile is a best fit for seniors who do not often drive and tend to drive carefully or for those who own several cars which they rarely use. Also, anyone who has a tight monthly budget and doesn’t mind the unresponsive claim process should consider Metromile. I believe Metromile will succeed if it could improve its customer service and additionally consider partnership with conventional insurance companies to create synergy.
Source:
1. https://www.valuepenguin.com/metromile-auto-insurance
2. https://www.crunchbase.com/organization/metromile#/entity