northwoods2
Expert
- 27
Ladies and gentlemen:
New poster here. I have been looking into to auto insurance business for the last few years. I read about the pay per mile feature that many companies are offering and followed that thread from its basic concept to university/PHD-level papers recently published. One in particular details the potential premium reductions possible when PPM is incorporated into the risk pool and used to calculated premiums, along with the standard items like, age, address, driving record, etc. What I found was rather startling.
Fast forward to the present.
Many of us are not driving much, if at all these days. In the past, I put 20,000 miles or more per year on my commuter car, and less than 2,000 per year on another vehicle, yet paid full coverage for both with no usage reductions. Progressive insurance has a system (Snapshot) that addressed this, so I tried it.
I used the device per the instructions for 30 days. My miles driven were recorded, along with an item called "acceleration events". If I accelerated or slowed down at a rate that exceeded the device programming I was dinged for it. The device would ding me almost every time I slowed for a stop sign or light. No dangerous driving - just normal stuff we all do every day. Net result - no deduction! I am an unsafe driver regardless of my clean record.
Continued research - most every company offering this feature did the same thing - offering great discounts followed by yanking them when their gadget "decided" your driving habits did not measure up. Other companies would give you a great reduction and then a few months later start increasing your rates, providing a excuse like accidents in your area have gone up, but you did not have one. SO... why are they going up??
The more I read the angrier I became. Come to find out the industry in general cannot afford to reduce rates because of inefficient business practices.
Long story short, I am looking into forming an auto insurance company that is based on fairness as viewed by the customer. My background is engineering, so I have a lot to learn.
I have a web site but will not share it until I hear from the moderators that doing so will not violate any policies. At this time, I have nothing to sell. Just information, for now.
New poster here. I have been looking into to auto insurance business for the last few years. I read about the pay per mile feature that many companies are offering and followed that thread from its basic concept to university/PHD-level papers recently published. One in particular details the potential premium reductions possible when PPM is incorporated into the risk pool and used to calculated premiums, along with the standard items like, age, address, driving record, etc. What I found was rather startling.
Fast forward to the present.
Many of us are not driving much, if at all these days. In the past, I put 20,000 miles or more per year on my commuter car, and less than 2,000 per year on another vehicle, yet paid full coverage for both with no usage reductions. Progressive insurance has a system (Snapshot) that addressed this, so I tried it.
I used the device per the instructions for 30 days. My miles driven were recorded, along with an item called "acceleration events". If I accelerated or slowed down at a rate that exceeded the device programming I was dinged for it. The device would ding me almost every time I slowed for a stop sign or light. No dangerous driving - just normal stuff we all do every day. Net result - no deduction! I am an unsafe driver regardless of my clean record.
Continued research - most every company offering this feature did the same thing - offering great discounts followed by yanking them when their gadget "decided" your driving habits did not measure up. Other companies would give you a great reduction and then a few months later start increasing your rates, providing a excuse like accidents in your area have gone up, but you did not have one. SO... why are they going up??
The more I read the angrier I became. Come to find out the industry in general cannot afford to reduce rates because of inefficient business practices.
Long story short, I am looking into forming an auto insurance company that is based on fairness as viewed by the customer. My background is engineering, so I have a lot to learn.
I have a web site but will not share it until I hear from the moderators that doing so will not violate any policies. At this time, I have nothing to sell. Just information, for now.
