AmFam introduces MilesMyWay
American Family Insurance has partnered with Cambridge Mobile Telematics to create MilesMyWay, a new, “first-of-its-kind auto insurance program that rewards drivers for driving less.” The app-based program is a pay-as-you-drive (mileage-based) telematics offering that allows drivers to earn rewards each month based on the exact mileage they drive.
Policy holders can receive savings totaling up to 25% of their monthly premiums, which start when an enrolled vehicle is driven less than 8,000 miles per year – or about 667 miles per month. Drivers won’t be penalized or charged more for driving more as they’re rewarded for driving less. Mileage is measured with the MilesMyWay app and a small windshield-mounted sensor paired via Bluetooth. The program is available to customers who drive less than the average of 10,000 miles annually.
The main difference between this program and other mileage-based programs is that with MilesMyWay customers know the maximum amount they will pay each month, with only their reward adjusting based on mileage. On the other hand, a pay-per-mile model like Metromile’s charges policyholders based on miles driven where the more they drive, the more they pay, resulting in a monthly premium that fluctuates. Pact is another noteworthy example with their Pact Pause feature that allows policyholders to lower their coverage levels when they aren’t using the car, however, with MilesMyWay coverage levels remain the same.
“The COVID-19 pandemic continues to change consumer driving habits and consumers’ expectations of how they pay for their auto insurance. The MilesMyWay app ensures that as customers’ habits change, so does our service. We owe it to policy holders to continue to adapt to their needs during this unprecedented time.” – Jenny Sankovsky, American Family product strategy and innovation director.
“We’re excited to work with American Family to launch this innovative program that gives drivers more control over their auto insurance. We’ve seen big changes to how people commute daily and travel on longer trips; MilesMyWay is great use of our technology that measures driving accurately and in near-real time.” – Hari Balakrishnan, CMT’s co-founder and CTO.
The program will first be offered to eligible Arizona customers before rolling out to other operating states throughout 2021.
Bottom Line: A clever move considering how many dislike not knowing the sum of their bills.
