Uber and Metromile Announce Personal Car Insurance Partnership
So this is a major announcement by Metromile, a tech insurance company that charges by the mile. Their pricing (subject to change, listed for reference) is
- $29.70 a month
- 3.8 cents a mile driven.
They track your miles with a small dongle that connects to your car via ODBII that tracks your odometer and GPS. Metromile customers can disable the GPS tracking feature so it only tracks your mileage based on your onboard car computer. You only pay for the miles you drive. Also, you don’t pay for any miles over 150 miles (250/day in Washington) in any given day so if you drive 600 miles in a day, you only get charged for the first 150 miles so keep that in mind when you drive long distances.
I did a quick analysis and I myself normally drive 12k miles a year. So my payment would be $360 base + $456 in miles, so total would be $816 a year, which is pretty good. I pay about that much a year on my car but it is quite a bit older so you will need to do an analysis to see if its worth it for you.
What is this new agreement?
However, this Uber agreement changes everything. Now Metromile provide personal car insurance that will cover Uber drivers for when they are driving for personal use. They are among the first company that is openly insuring Uber drivers. The “meter” stops when you accept an Uber trip all the way to dropoff, so you can save quite a bit of money by signing up for Metromile and only paying for the miles you are driving for personal use. During a normal Uber shift, if you don’t drive between passenger dropoff and the next request, then you will not be paying insurance for any miles you are driving while online.
With the way Metromile works, it should be quite a bit cheaper than the traditional insurance option that does not charge customers per mile. I would expect traditional personal car insurance options to have policies for TNC drivers but be more expensive because they are expected to put more miles on their car and have higher risk of accident due to their driving pattern. Metromile’s insurance system would be quite a bit cheaper by not having to pay for the miles you drive on Uber.
It also removes the huge grey area for rideshare insurance. They offer this type of partnership in California, Illinois, and Washington. Metromile also offers insurance in Oregon but the Uber integration is not available in Oregon yet.
Metromile is a few months ahead of the current legislation in California that requires car insurance companies to cover TNC drivers (CA AB2293). There is similar legislation in Illinois and Colorado. Hopefully this announcement will encourage other insurance companies to come out with their own policies that cover TNC drivers not only in California, but across the country.
You can see my interview with Dan last night ahead of this huge announcement today:
- What is Metromile and how does their insurance work?
- How does Metromile personal car insurance work for Uber Drivers?
- In what ways can Metromile help Uber drivers save money on their car insurance?
- Can Lyft or Sidecar drivers sign up for this service?
- How can existing Metromile customers who drive for Uber take advantage of this new partnership with Uber?
- In what ways can Metromile help any driver save money?
- Can Metromile find out whats wrong with your car?
Below is a snippet of the PR announcement.
Metromile has revolutionized car insurance with its pay-per-mile model, saving customers money by charging them based on the number of miles they drive. Now, by integrating its platform with Uber, Metromile can distinguish the miles that Uber driver partners drive on a ridesharing trip (from accepting a trip to when the passenger safely exits the vehicle), when they are covered by $1 Million in primary commercial auto liability coverage from Uber (through its TNC affiliates). As a result, with pay-per-mile insurance offered by Metromile, Uber driver partners can also be covered during the times that they are driving for personal use and when they are waiting to receive requests from riders; driver partners would only be charged for the miles they drive during these periods.
You can see more at this blog post by Metromile.Have more questions about Uber or Lyft? Head on over to our Rideshare Driver Training Course!