"Teen Miles" - A Method for Insuring Teen Cars

Patrick Butler

mobile (512) 695-5136
patrick@milestation.com

1100 H Street, NW Suite 300

Washington, DC 20005

Page 1

"Teen-Miles"
An Insurance Agency Method for Insuring Teens’ Cars

PRICING CHALLENGE FOR INSURING TEEN CARS

Chart: Accidents per million miles by driver age and sex

  • The accident rate of sixteen year olds - above left - is 27 per million miles
  • This rate is nearly eight time the adult rates - middle of the chart - of about 3.5 accidents per million miles.

MEETING THIS CHALLENGE WITH THE TEEN MILES 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 a deposit premium for 1,000 insurance miles and policy and expense fees.
  • At renewals teens would pay for "refill" miles to replace miles driven (earned) since last month's odometer reading and also pay policy and reading fees.

Download 8-page proposal

15 minute video presentation for independent agents
Download MP4 file (9.5MB), or
WMV file (9.2MB)