Allstate launches pay-as-you-go auto policy in Ohio

Allstate launches pay-as-you-go auto policy in Ohio | Insurance Business America

Allstate launches pay-as-you-go auto policy in Ohio

Vehicle owners in Ohio now have access to Allstate’s Milewise, an auto insurance policy with which consumers pay based on how much they drive.

The product, which was launched in other states last year, is designed for people who don’t frequently drive their cars and is particularly popular among retirees, stay-at-home parents, and students, where it’s available. Instead of a fixed monthly premium, the insurer uses a device under a vehicle’s steering wheel to track and charge policyholders on either a daily or per-mile basis.

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“Milewise is great for people with a low-mileage lifestyle,” Rich Vander Weyst, territory sales leader at Allstate, told The Columbus Dispatch. “As different transportation methods continue to evolve, people are beginning to rely less on their personal vehicles and more on public transportation, ride-hailing and ride-sharing.”

A policyholder’s daily and per-mile rate is determined by factors such as vehicle type and driver history, and a daily cap prevents charges for additional miles spent in cases such as long road trips. Policyholders will also have access to an app that allows them to track their trips and current balance.

Allstate spokesperson Trinity Slabbekoorn told The Columbus Dispatch that savings from a traditional policy can be around 25% for someone who drives around 77 miles a week.

Pay-as-you-go auto insurance policies are becoming increasingly visible in the market. In February, Nationwide launched its own policy called SmartMiles in Illinois, and plans to expand it to Ohio next year.