Coverage Questions

1. What is MileMeter insurance?

   If you drive less, you pay less. With our new launch of MileMeter 2.0, you are covered for six months. If you drive more miles than expected, you are still covered as long as you pay us promptly for the miles driven. You get the peace of mind of a traditional six-month policy, and all the savings and benefits of distance-based insurance. Win-win! You can pick, purchase, and print your insurance cards from the website, and the entire transaction requires only 5 minutes. The policy costs are quoted in cents per mile. You may purchase between 1,000 and 6,000 miles of coverage and pay in full at the time of purchase.

2. How is the policy contract defined?

   With MileMeter 2.0, you are covered for six months from the time of purchase. If you drive more miles than expected, you’re still covered as long as you pay us promptly for the miles driven.

3. What if I run out of miles within my six-month policy, and then get into an accident?

   Let’s say you buy a 2,000 mile policy. A few months later, you take a surprise road trip to see your friends in Savannah, Georgia. By the time you get back, you notice – wow – you’ve driven 2,100 miles already. The next day you have an auto accident. With MileMeter 2.0, you’re still covered! The claim will still be handled as quickly and efficiently as possible, and in the meantime just log on so you can buy more miles!

4. Does the policy cover other household drivers?

   Each policy is based on a vehicle/driver pairing. The policy covers the named primary driver and any named secondary household drivers for the vehicle specified in the policy application. For instance, if you purchased a MileMeter policy to cover yourself and your spouse for the vehicle with the license plate “MYCAR1”, then your policy fully covers you both only when driving “MYCAR1.” If you and your spouse want to drive another car other than “MYCAR1”, then you should purchase another policy for the additional vehicle.

   If your MileMeter policy has one named driver — you — you should not give someone else in your household (e.g. your 18-year old daughter) permission to drive that vehicle. If this is your primary vehicle but you want to let someone else that lives in your household (e.g. your 18-year old daughter) drive that vehicle, you should add that person as a secondary driver to your policy.

   If your tendency is to worry about coverage limits, the safe thing is to make sure all household drivers are named in your policy by listing them as drivers. If you have an 18-year old daughter, well, there’s only so much we can do to help! To minimize the cost of insuring an expensive driver like an 18-year old, we suggest insuring them on their own vehicle (your hand-me-down car) with just a few thousand miles per year. In this manner the cost can be contained by limiting driving, and the other vehicles and drivers in the household will not be paying for the 18-year old on the other policies. Again, if they are not listed on a household vehicle’s policy, they will not be covered when driving this vehicle.

5. Does the policy cover non-household drivers?

   Non-household drivers (e.g. your visiting mother-in-law) only receive 25/50/25 liability coverage if they are operating your vehicle with your permission. You cannot add a non-household driver as a listed driver on your MileMeter™ policy.

   If your policy has one named driver — you — and you give permission to someone else who does not live in your household (e.g. your visiting mother-in-law) to drive the vehicle, then the permissive user will only receive 25/50/25 liability coverage. If your policy has any coverages above and beyond 25/50/25 liability — such as higher liability limit coverage or Physical Damage coverage (Part D in your policy form) — then the permissive user will be operating your vehicle with restricted coverage of only 25/50/25 liability, which is the minimum coverage required under Texas law.
6. Are rental vehicles covered?

   Yes an no — you receive some coverage under Part A (Liability Coverage) but not Part D (Coverage For Damage To Your Auto) of your MileMeter™ policy. The policy excludes coverage for liability assumed by contract. If you have an accident in a vehicle you rented, and the accident is due to your negligence, the policy covers your negligence. The policy does not cover liability that is based solely on a contractual obligation to pay for damages caused to a rental vehicle. In other words, to protect against loss or theft caused to the rental vehicle you should purchase the rental company’s damage waiver deductible.

7. Does a MileMeter policy cover multiple family cars?

   No, each MileMeter policy applies to a single vehicle. You can purchase a policy for each vehicle in your household, thereby providing economical, equitable, and convenient insurance for all of your family’s cars.

   • Each vehicle that you insure with MileMeter can have a different set of listed drivers from your household. For instance, if you are a three car family and you, your wife, and your 18-year old daughter are drivers then you might consider the following scenario.

   • 2,000 mile 50/100/50 liability policy for your 18-year old daughter’s 1994 Volvo 850 sedan. Mom, Dad, and Daughter are all listed drivers on this policy. Since policies are rated using the highest-rated driver, adding Mom and Dad should not add any cost to Daughter’s vehicle policy. When Daughter needs more miles, you can purchase more on her behalf (giving you the “power of the purse” to ration her insurance, and by proxy her vehicle, usage).

   • 4,000 mile policy for your wife’s 2003 Lexus 300ES, with 100/300/100 liability and Physical Damage coverages. Mom and Dad are the listed drivers on this policy.

   • 3,000 mile policy with 25/50/25 liability for your 1997 Ford F150 truck. Dad is the only listed driver on this policy — probably because Dad has a habit of driving with his favorite dog in the cab.