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Set to roll out late this year, early next year - this may be great news for low mileage or multicar drivers.
Unless you dislike the idea of having mandatory GPS tracking for cars in half a decade as people are forced from ordinary insurance to pay-as-you-drive insurance.
Oops! I forgot, insurance companies are the salt of the earth. Government is the cause of all problems.
dzyr4tt said:Damn.. I hope you are not in my state.. as I might be indirectly paying for your premium..
I put only 5000 on my daily driver ( I take the train to work ).....and my other car only rolled abt 1200 miles... He's only costing you something if he gets into or causes an accident.
TheMeliorist said:dzyr4tt said:Damn.. I hope you are not in my state.. as I might be indirectly paying for your premium..
I put only 5000 on my daily driver ( I take the train to work ).....and my other car only rolled abt 1200 miles... He's only costing you something if he gets into or causes an accident.
hehehe...
well...since he is driving that much, the risk of getting into or causing an accident are more and increases his risk profile...and hence I am balancing out that risk...
I am actually looking into Progressive thats offering the same...
Set to roll out late this year, early next year - this may be great news for low mileage or multicar drivers.
Do you really think they would do this if it was GOOD for the consumers?
It is possible for something to be good for a company and the consumer, believe it or not. As for the paranoid slippery-slope folks, I wouldn't worry too much. There's more then enough of you to ensure we will always have flat-rate insurance too.
dzyr4tt said:TheMeliorist said:dzyr4tt said:Damn.. I hope you are not in my state.. as I might be indirectly paying for your premium..
I put only 5000 on my daily driver ( I take the train to work ).....and my other car only rolled abt 1200 miles... He's only costing you something if he gets into or causes an accident.
hehehe...
well...since he is driving that much, the risk of getting into or causing an accident are more and increases his risk profile...and hence I am balancing out that risk...
I am actually looking into Progressive thats offering the same...
That is an incorrect assumption, as highway miles are significantly lower risk then city miles. Also, generally the more experience you have the less risk you are at for getting into accidents. That is why pilots are charged based on their hours of operation in class. In my opinion you driving less then 7,000 miles a year would put you in a higher risk category, especially since you live in a metro area; as opposed to someone that lives in a rural area that has a low frequency of accidents, and who drives 3x your miles.
I do 95% of my commuting on the highway and I try to avoid heavy traffic whenever possible and succeed. Highway driving is safer and it is better for the car instead of stop and go traffic.
Do you really think they would do this if it was GOOD for the consumers?
Do you really think they would do this if it was BAD for the consumers? The purpose of businesses is to generate value. Profit is the metric of the value generated. If consumers are worse off, then value is being destroyed and the business will run at a loss.
The only way this could be profitable to a business if if there was a monopoly such that it forced consumers to enter into a worse agreement then they are currently in now.
Message edited by: tripleB on 2009-11-07 18:42:55 CST
Do you really think they would do this if it was GOOD for the consumers?
Do you really think they would do this if it was BAD for the consumers? The purpose of businesses is to generate value. Profit is the metric of the value generated. If consumers are worse off, then value is being destroyed and the business will run at a loss.
The only way this could be profitable to a business if if there was a monopoly such that it forced consumers to enter into a worse agreement then they are currently in now.
ahh soo true .... it makes perfect sense till the govt gets involved. Slipper slope for the govt to make it almost mandatory. They wont come out and say that ... it will be more of a "Tax" you higher depending on the type of insurance you choose. Per mile gets taxed less if at all.
You keep the govt out of your recently learned economics definition and then it might be true. Are you blind to the fact that some businesses will do what ever their little political beliefs tell them to do without regards to "value." Monopoly's be damned, they can have an impact without being a monopoly. I now have to drive farther away to purchase the same item rather than support some stores outrageous political action or belief.
The only way this could be profitable to a business if if there was a monopoly such that it forced consumers to enter into a worse agreement then they are currently in now. Monopoly isn't the only way to force consumers buy things they don't want. There is also government. In most states car insurance consumer does not have any say in this, and will just have to pay for whatever cappry options are forced upon him
Crazytree said:might actually buy a hobby car and insure it under this regime.
Right, I think the most benefit is going to be for people like me, who own multiple cars and put very little mileage on some of them. I am hoping for premiums under $100/year on the secondary cars
ardentazn said:If this is the case.... zero miles driven= free insurance????
well anyhow, time to unplug the odometer..I am sure theres going to be a baseline minimum premium since the car is still exposed to theft/damage even when not driven.
Milemeter , the current leader in the pay per mile insurance industry, has ppl buy their insurance in 1000 mile blocks, so a very little used car will still need to have a 1000 mile plan
SUCKISSTAPLES said:Crazytree said:might actually buy a hobby car and insure it under this regime.
Right, I think the most benefit is going to be for people like me, who own multiple cars and put very little mileage on some of them. I am hoping for premiums under $100/year on the secondary cars
Insurance companies are going to increase profit, not lower it.
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