Porsche Financial Services, the leasing and financing provider of Porsche products, has partnered with Mile Auto for pay-per-mile insurance cover.
As part of the deal, Porsche is establishing Porsche Auto Insurance which will offer its customers on-demand insurance products which limit costs to actual miles driven. The insurance division will offer tailored rates and full transparency on mileage data collection.
The new insurance division will initially pilot in Illinois and Oregon during the start of 2019. Rates for customers will be calculated through a combination of a monthly base rate, and traditional insurance variables such as vehicle type and driving history.
Mile Auto’s insurance software does not track miles driven through a black box or smartphone apps, instead its computer visions technology can verify a vehicle and mileage through a photo sent by the customer.
Porsche Financial Services president and CEO Ross Dupper said, “We know that many Porsche drivers exhibit low-mileage driving habits, making them a perfect fit for a pay-per-mile model with non-invasive technology.”
There have been a handful of pay-per-mile auto insurance companies to raise funds over the last year. UK-based startup By Miles closed a £1m funding round to support its launch in the country, while US-based Meromile pulled in $90m for a Series E.
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