Imagine insuring only the miles you drive? It’s possible

(BPT) - Today’s consumers want to get the most out of what they pay for. Instead of buying bloated packages full of useless add-ons, they only want to pay for the services and products they will actually use, when they want to use them. Streaming services such as Netflix and Hulu are gaining popularity against cable packages and pay for use options exist in the automobile, fashion and cell phone industries.

Given this shift, it’s no surprise consumers are demanding pay-for-use options from their car insurance companies as well. Industry research shows that nearly 80 percent of consumers feel usage-based insurance options are a fair way to price insurance and 90 percent of consumers ages 18-34 are willing to try usage-based insurance.

To meet this shift in customer demand, insurance companies are providing consumers with increased options. Some plans allow consumers to select the price they want to pay and then modify their coverage and deductibles around that budget. Others attempt to base a consumer’s insurance premium around his or her driving habits and behavior, obtaining driver information to judge the driver’s safety.

The latest innovation in the car insurance industry is to allow consumers to base their insurance premiums on the number of miles they actually drive. This allows them to truly ‘get what they paid for.’ Insurance plans through Metromile offer drivers in California, Illinois, Washington and Oregon this kind of pay-per-mile service. To date, these are the only states where the plan exists, but more states are expected to adopt Metromile’s pay-per-mile option this year. Drivers interested in researching their options in other states can add themselves to the waiting list.

Sixty-four percent of drivers pay higher premiums to subsidize the minority who drive the most. A pay-per-mile plan allows customers to subscribe to the insurance coverage they want and pay only for the miles they drive – instead of floating higher premiums to support the driving habits of others.

Data from Metromile shows drivers who drive fewer than 10,000 miles a year report save nearly $500 annually by switching to pay-per-mile insurance options. These types of packages also offer drivers benefits like personal driving apps and in-car devices that plug into the OBD-II port of the car. The app and the device can be used to find the vehicle’s parking space, contact a certified mechanic, and even monitor the vehicle’s health. It can negotiate future car service and find the vehicle if it has been stolen. In some states, the technology also warns car owners when street sweepers draw near so they can move their vehicle and avoid costly parking tickets.

To learn more about how pay-per-mile insurance through Metromile can benefit you, visit Metromile.com.