What is Pay per Mile? What are its benefits for insurers and users? How does it all work? Check out some interesting bits about pay-per-mile insurance and telematics technology!
- Pay-per-mile insurance is a type of usage-based insurance (UBI), meaning the costs and rates are closely dependent upon the driver's behavior and habits.
- The growth of pay-per-mile insurance products is enabled by the rapid advancements of telematics technology, but also by the motivation of insurance companies to build a more satisfied and loyal customer base.
- According to Statista, the value of the global vehicle telematics market is expected to be around 103 billion dollars in 2022.
- The United Kingdom, Italy, South Africa, and the US are among the most developed telematics markets. Each of these countries has had its own unique reasons to start implementing this technology into cars and insurance products.
- Owing to the pay-per-mile solutions, insurance companies are able to create insurance products tailored to fit users’ individual needs and reach new demographic segments and markets, as well.
- At the same time, users can have full control over their insurance costs and achieve significant savings. To put it simply, they pay for the miles they actually drive.
- The key to the pay-per-mile is in its simplicity and practicality. For example, users can quickly activate a prepaid insurance package via their smartphones, without the need for paperwork.
- Pay-per-mile insurance is especially a good choice for drivers who do not commute so often or mostly work from home, but still have long trips occasionally.
- Due to the smartphone-based telematics technology, it is possible to collect and analyze driving and behavior data, which enables insurers to offer a variety of benefits to their users. For example, a better driver can get bonuses and more favorable rates.
- Amodo’s technology and methodology, including pay-per-mile solutions, are used by insurers around the world. Moreover, Amodo is among the top 5 worldwide InsurTech companies!
Do you want to know more? Join us on November 8 for a webinar, where representatives of Amodo and UNIQA, supported by moderator from bsurance, will talk about Pay per Mile and game-changing insurtech solutions! Sign up HERE!
Amodo is an insurtech company on a mission to disrupt the insurance industry. By turning users' smartphones into powerful telematics sensors, Amodo Connected Insurance Platform enables insurers to deliver tailor-made products by gathering and contextualizing behavioral data. Over the past eight years, Amodo launched more than 40 different Connected Insurance Products worldwide, with some of the leading companies such as AIG, Porsche Insurance, BNP Paribas Cardif Insurance, UNIQA, and many others. Amodo was named by Financial Times as one of the top 5 Insurtech companies globally, is a winner of a prestigious Digital Insurance Agenda Diamond Award in 2020, and has been named by Frost and Sullivan as the Best Practice Leader in the Usage-Based Insurance market in 2021.
Feel free to fill out the form with any questions you might have, and our team will get back to you.