Porsche partners with insurtech to offer usage-based coverage to customers
Automaker Porsche is dipping its toe into the insurance business with a new offering for customers in partnership with insurtech Mile Auto.
Porsche is creating a branded version of Mile Auto's mileage-based insurance app, which uses computer vision technology to verify a vehicle and its mileage from a photo sent from customers' smartphones, and charges based on the miles driven. The luxury-car manufacturer says the program is ideal for its customer base, which tends to drive less than the average.
"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," said Ross Dupper, President and CEO of Porsche Financial Services, the provider of leasing and financing products for Porsche in the United States.
Rates are calculated by combining a monthly base rate, determined using traditional insurance variables such as the customer's vehicle type and driving history, with a low per-mile rate.
"Where you go is your business, not your insurance company's," said Fred Blumer, CEO of Mile Auto, which launched last year after being founded in 2016. Its policies are underwritten by Falls Lake National Insurance Company.