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"Teen-Miles"
An Insurance Agency Method for Insuring Teens’ Cars
By Patrick Butler, PhD
January 13, 2012
This document describes the teen-miles method
to independent agents with the intent of building a demand by agents for a teen-miles
product from carriers.
CUSTOMERS FOR THE METHOD
- Our method is for insurance agents
- Who are frustrated by having only high premium products to offer for teens' cars.
- Our method would insure these cars with one month policies at cents per mile rates
- Which would let teens control premiums by limiting driving.
- At startup teens would pay for an initial "fill-up" of 1,000 insurance miles and also pay policy and expense fees.
- At renewals teens would pay for "refill" miles to replace insurance miles driven (earned) since last month's odometer reading and also pay policy and reading fees.