Update on mileage based insurance from Unigard
For the past year, my wife and I have been participating in a trial of mileage based auto insurance from Unigard, called “RateFlex”. The idea behind is to charge for auto insurance by the mile instead of a flat, all you can drive, price. So far, the trial has only involved plugging a little GPS receiver into our cars so the insurance company can tell how many miles we’ve driven… And where, when, and how fast – Normally, I’d find that a little creepy. But frankly, they’re going to know that our cars mostly sit in our garage. When they do go out, they typically don’t drive during rush hour and go for long drives in relatively safe areas at roughly legal speeds. In short, we’re pretty much dream clients for an insurance company. (Did I mention I’ve only had 2 claims in 26+ years of driving – both for rock chips in a windshield? Like I said, dream clients)
The trial has progressed to the point where we now have a new and improved set of GPS receivers on the way along with a quote for what the insurance will cost. The quote includes a “fixed”, or base, price along with a “variable” per mile price. I’ll admit to being a little disappointed that the “fixed” rate isn’t lower and the “variable” rate higher. After all, if my cars are sitting in the garage most of the time, how are they going to be exposed to liability? Either way, the rates are about 25% lower for the amount we drive and it’s progress. After all, why should my wife and I, who drive less than 12,000 miles per year, be charged the same as a similar family that drives 30,000 miles?
We are still in the trail phase and things are still a little rough. I had some difficulty getting documents and I had to submit payment by check – no credit card payment yet. But once the program is ready to go, I’ll be sure to let everybody know – as will, I’m sure, Unigard’s marketing department.