Introducing the FairMile program by Farmers
Farmers Insurance announced it’s offering its new usage-based commercial auto insurance program FairMile in Washington . With FairMile, business owners have the opportunity to choose per-mile insurance pricing and gain access to the FairMile app, which contains information to review and manage the use of their vehicles.
“Farmers® is excited to bring the FairMile program to the small business community in Washington. At Farmers, we are deeply committed to innovating based on the emerging needs of our customers. We recognize that all businesses are created differently, but for many, driving operations can change from day-to-day or from season-to-season. The FairMile program provides a flexible option for customers who prefer usage-based pricing to address this variability. As an added value, we look forward to providing our customers with insightful vehicle information displayed via the FairMile app. This new offering is just the latest demonstration of our commitment to meeting needs of an evolving marketplace.” – Aaron Cruz, product development lead for the FairMile program at Farmers Insurance.
Based on an internal survey of Business Insurance customers, Farmers found:
- While 33% of business insurance customers were already likely to use telematics technology, nearly 75% were likely to use telematics technology if accompanied by additional savings on their insurance policy.
- While per-mile pricing expectedly resonated with businesses that were driving less, those that preferred a per-mile pricing concept tended to be smaller in size.
With the FairMile program, the premium is based on the actual miles driven in each business vehicle insured by a Farmers Commercial Auto policy. It may be ideally suited to provide potential cost savings to customers that have a seasonal or cyclical business, such as landscapers or florists, businesses where driving is infrequent, or businesses where certain vehicles are used sparingly. Each month, premium adjustments are made to reflect actual miles driven compared to the mileage amount originally estimated. Business owners have the option to select between a monthly EFT or credit card payment plan to facilitate premium adjustments.
Customers choosing to enroll in the FairMile program will receive a telematics plug-in device for each of their business vehicles. The device is compatible with most vehicle model years 2000 and newer and must be installed in each of the vehicles in the program.
