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Saving Cents: Buy car insurance by the mile KVUE

05.05.10

HOUSTON—There’s a first-of-its-kind auto insurance company in Texas that sells coverage by the mile. The company is called MileMeter, and is based in Dallas.

The policies are great for people who live close to their jobs, those in the military who leave a car behind that is unused, retirees who do not drive much and those with a second car or truck that rarely leaves the garage.

The company’s CEO, Chris Gay, said rates could be as low as 2 cents per mile.

Drivers sign up online and print out their own insurance cards. The claims process begins with a phone call and works like traditional auto insurance.

David Moore of Spring has a MileMeter policy on his 1989 Honda and has even filed a claim. He said the process was "easy" and he even ended up paying a lower deductible than those charged by big auto insurance companies. Moore pays 5 cents per mile.

Gay said customers must provide photo evidence of their odometer to get a policy. Policies last six months. If a customer uses up all their miles before six months expires, they can simply buy more miles, he said. If they do not use all their miles in the six-month period, they receive a credit that is applied to the next six-month period.

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