Per-Mile Insurance Premiums Introduced to the US
Voom helping to make motorcycling more affordableby Harry Fisher, on
Paying for insurance even when you’re not using your bike seems like such a waste of money. While it is sitting in the garage, you need half of the cover you need when you are riding. Thanks to insurance company Voom, a solution is coming to a State near you.
Pay for the time you ride
Talk to any insurance agent and, if they’re honest, they’ll admit that insurance is a grudge purchase. You pay every month for something you’ll probably never need although it has to be said that if the worst does happen, it’s reassuring to know you’re covered.
However, things can get pretty expensive if you happen to be in the fortunate position of owning more than one bike. In that case, no longer are you paying only for one bike but you are paying mostly for all the bikes to sit in the garage unused. Also, you may be an infrequent rider or have no idea how much you will be riding in any one month or year. If that is the case, then why pay monthly or annual premiums?
None of these can be unusual circumstances which is why it’s strange how it has taken insurance companies so long to come up with a viable solution. But it has happened, thanks to insurtech company Voom.
Less Risk The Less You Ride: It’s Obvious Isn’t it?
Research conducted by Voom found that “the risk associated with low-mileage riding can be more than 80% lower than that of high-mileage motorcycling, but traditional insurance policies are annual across the board.” A per-mile policy will enable riders to keep their motorcycles insured for the entire time they are not on the road, keeping insurance premiums low for those who simply don’t ride that much or only ride when the weather is good.
It works very simply. There’s no black box or monitoring system on your bike: yo simply submit a photo of the odometer on commencement of the policy and then once a month after that. There will be a base rate and then a per-mile cost on top.
At the moment, the per-mile policies are available in Arizona, Illinois, Indiana, and Ohio.
CEO and Co-Founder of VOOM, Tomer Kashi, said: “We are excited to be providing motorcyclists with flexibility through this per-mile motorcycle insurance product.
“Enabling cost-effective insurance options for riders and drivers is our top priority. We look forward to spurring further growth across mobility, particularly in otherwise overlooked parts of the industry.”