Mile Auto raises $4 million

According to Crunchbase, Mile Auto has closed a $4 million debt round, bringing its total funding to $17 million.

Founded in 2017 and a team of ~20, the Atlanta-based MGA offers pay-per-mile car insurance. Investors include Ulu Ventures, Emergent Ventures, Thornton Capital, and Sure Ventures. Its coverage is relevant to those who drive fewer than 10,000 miles a year.

“With Mile, you only pay for the miles you drive plus a low monthly base rate. At the end of the month, you send us the number of miles you’ve driven. We add those miles at your per-mile rate to your base rate, and that’s what you pay. It really is that simple. For example, Fred has a base rate of $48 and a per mile rate of $0.08. He drove 300 miles this month, so his monthly total is $72 – his $48 base rate plus $24 (300 miles at 8¢ per mile).”

In 2019 it was announced that Mile is working with Porsche Financial Services in a few states to provide Porsche Auto Insurance customers with a usage based auto insurance option because “many Porsche drivers exhibit low-mileage driving habits.”

Last, Mile is currently available in Arizona, California, Georgia, Illinois, Ohio, Oregon, Pennsylvania, Tennessee, and Texas.

Bottom Line: Some of that investment money should be invested in better customer service.