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"Teen-Miles"
An Insurance Agency Method for Insuring Teens’ Cars
PRICING CHALLENGE FOR INSURING TEEN CARS
- 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.
15 minute video
presentation for independent agents
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