Metromile is a San Francisco-based car insurance company that offers pay-per-mile insurance tracked via a driving app. The key premise behind Metromile is that for those who barely clock the miles, shouldn’t have to pay similar premiums as those who do rack up those miles. All customers pay a base rate and pennies per mile thereafter. They have also incorporated Artificial Intelligence to process claims.
Auto insurance is an enormous multi-billion dollar industry ripe for disruption. Metromile is reshaping the USD 266 billion US auto insurance industry by offering pay per mile insurance.
As of 2020, the company is licensed in 8 states — Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia and Washington with long term aim to expand and be licensed across all 50 states.
Being fairly new to the market and aspiring to grow, they rely on investors’ money for expansion. By the time it raised its last venture round of USD 91 million in July 2018, Metromile has following merits to speak for:
· Raised USD 295 million
· Have presence in 8 states
· Acquired Mosaic Insurance to underwrite their policies
Going forward, the company intends to strive towards following
· Acquire license and increase their presence across all 50 states
· Drive profitability
Divulging from the norm and charging premiums based on how many miles one drives, helps customize quotes for individuals. This has helped Metromile pave a niche within the auto insurance industry. Expanding their footprint across all US states and driving towards profitability will help Metromile achieve a greater valuation in the long run.
