How Big is Metromile's Low Milage Driver Market?

[thomasm]

Maybe I live in a bubble, but I don't know anyone who only drives twice a week.

Ok, maybe Grandma and Grandpa who are in their 80's.

IS there a big enough market here for this niche pay per mile insurer to be sustainable in all 50 states?

https://www.bloomberg.com/news/articles/2016-09-21/metromile-raises-192-million-to-take-on-car-insurance-business

 

[djs]

Not sure why driving twice a week is relevant. For years, I drove less then 500 miles a month, usually significantly less. A mile to work, a mile home, 10 miles a week, some random errands made it closer to 100 a week.

Of course, the per mile charge is OUTRAGEOUS for what it is, so they make good money, but it sounds like I'm only paying for what I use.

Figure 500 miles a month:
$35 a month base fee
$0.05 per mile times 500 miles = $25.00 in mileage charges
$35 + $25 = $60 a month, for what I assume is bottom tier liability only, something I can buy for much less elsewhere, for probably the $35 a month base fee in fact.

Its a marketing gimmick.

Dan