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MetroMile CEO Stephen Pretre on how paying for auto insurance by the mile can save drivers money.
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All the talk about the fiscal cliff in -- -- a lot of people are feeling the pinch money's tight budgets or even tighter.
But one company's banking all the odds that you'll want to save some money on your car insurance this new device you're looking at a -- there.
It can make it possible to cut -- -- auto insurance by up to 25% it's all because you get charged by the number of miles you drive.
-- -- joins me now that's.
Works and how does it work how can you be Geico.
And progressive -- all the others how does this thing do it.
Well the the device is called the metronome and it allows us to track the actual number of miles that each person tries and so.
What we've seen in the US is a real change in the way that we're using our cars.
And there's a big divide is trying between.
High amount as drivers and low mileage charts -- what's what's the average.
Per year -- used to 121000 was opened 121000 on the got used to be 121000 and for the for example for the average person under 35 years old now they -- about 3000 miles a year to less than they did ten years ago so they're driving more about.
8000 miles per year and -- when we talk to those people we hear from them is.
Gas prices are going up are going up I'm trying to save money I'm trying to do the right thing for the environment by Joaquin.
Using -- by but.
He's opened my vacation what -- -- -- insurance I'm looking at the -- you know I'm buying the coverage god forbid I should be in an accident you know on might hurt somebody.
How does your plan work in my paying per mile is there a base he had as this -- that I get costs -- -- up -- America based.
Any doubt that so there's a base fee and then people pay a few cents per mile so basically what happens is you have -- -- a few cents per mile.
And the device tracks the number of miles of driving in the months so when you get it to the end of the month you can see.
Here's my rate per mile here's the number of miles that drove the so here's what I pay -- so every actually see if I drive this number of miles less this is how much I say.
So the base -- that's between twenty and thirty dollars right.
It varies by person read -- twentieth thirty dollars is that typical that we -- OK and then you'll pay anywhere from what is it two to six cents per mile.
That tends to be what most people see correct some little in a worst case scenario let's and paying your most expensive -- -- get your most expensive.
You know per mile rate.
What's my annual insurance costs going to be in does it is at the same plan I would get from a state farm or USAA in his -- covered.
So that the plan is the same so is exactly the kind of car insurance you expect to have in terms of the lend -- cable -- there isn't it.
All that kind of stuff so it looks like a normal policy.
But depending on how much you drive your savings so for example -- how much out of luck -- So they're they're crossing point is generally about 101000 miles per year.
And it.
Liked -- said before if you drive about 8000 miles -- year.
Most people be saving twenty to 25% and then it goes up from there we have people that are driving their car.
Almost nine and are saving 5060%.
Of.
As are you saying if I spent a thousand dollars a year on auto insurance and night drive 8000 miles or less if someone of these younger people you were mentioning.
Now -- you know those -- -- 150 mile.
79800.
Dollars a year correct diet outlined it has been doing this and how to people get in on -- you licensed you know a new Yorker in other states.
So we just launched three weeks ago we started in Portland and more looking to expand from there are sort license and organ right now content to sell the product there and then we're looking -- expanding from that point.
-- real quick again are you able to tell us what states are going to be next -- -- a lot of people don't wanna get in on this and what's your website -- they find out more.
So it is -- mile dot -- and that's where they go find out more and we're looking at what states we expand into were obviously looking at cities that have very similar patterns.
People that are using lots of public transportation alternative transportation.
And as a result are driving less -- in the soft you know cities like San Francisco Seattle New York.
Boston are great places for this product sounds like a great idea and again of the website at people and learn more about diamonds in the one watch when it's gonna come to their -- because if they -- wanna save some money this sounds like an option to to follow.
Great thank you.
Thank you Stephen you be well now small.
