Allstate becomes first — and only — insurer to offer weekly car premiums

Some insurance policies are far from simple, but what can be more straightforward then paying for car insurance based on how much you drive?

Recently, Allstate introduced a new twist to its pay-per-mile program, Milewise, in Arizona. The national company is now the first — and only — insurer to offer weekly car insurance premiums.

Under the Arizona pilot program, drivers are charged a per-mile rate that changes week-by-week based on driving habits. For example, if in one week, the driver travels a few miles and exhibits safe driving habits, their rate could be lowered for the following week. Conversely, if the driver commutes more miles and showcases more erratic driving behaviors, such as hard braking, their rate could increase.

To understand how the program will impact insurance agents and consumers, we asked a representative from Allstate to explain more.

PC360: How will this development impact Allstate agents who sell auto insurance?

Allstate: Milewise, with personalized pricing, provides our agency owners with a new tool to lower premiums and encourage safer driving with their customers. We also have found that Milewise customers interact with their policy online or through the app an average of seven times each month. That means they are more connected than ever before to Allstate, and it provides agency owners with even more opportunities to support their customers.

PC360: How have customers responded to the program?

Allstate: So far in Arizona, two-thirds of our Milewise customers have seen a decrease in their auto premium. That also means they are getting feedback from the program and driving safer as a result.

PC360: Who is the ideal customer for this type of program?

Allstate: When we started our overall Milewise program, we thought it would suit your average commuter, but we have since seen our customer base expand to teens and young adults who simply use a car to go to school or work. We’ve also seen seniors as well as people who work from home and keep low mileage enjoy the new Milewise program. Not only does it suit people from various backgrounds, but the new weekly premiums based on actual driving behavior provide the most fair and transparent approach to auto insurance on the market. Customers can control their costs by getting feedback on their safe driving habits and adjust to help lower their premium each week.

PC360: What are the next steps for the program? 

Allstate: Milewise is currently in 14 states, and we will continue to roll out personalized pricing based on driving behaviors as we get approval from regulators along the way. Because those regulations vary from state to state, we don’t have a timeline on where it will go next, but we are committed to helping customers take more control over their premiums while learning more about their safe driving habits.

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