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Pay-as-you-ride insurance scheme

World-first policy launches in USA

The world’s first pay-as-you-ride insurance scheme has launched in America allowing leisure and seasonal riders and those who own more tan one motorcycle to reduce their insurance costs.

It makes a lot of sense and we hope it takes off in Australia where you have limited options to reducing your very hefty insurance premiums.

We would also like to see something similar for registration fees. After all, why should we pay full registration for a motorcycle that may sit in the garage for weeks on end?

Riders are already used to pay-as-you-go road tolls and there are several cities in the world where you pay to enter CBD zones.

There is also talk of such systems in Australia to reduce peak-hour congestion. 

So it makes sense t ave insurance and eras registration tied to distance travelled.

The pay-per-mile scheme launched in the USA by insurtech company is called VOOM.

It allows riders to accurately tailor their insurance premium to the number of kilometres (or lies in the States) that they ride.

So if you are snowed in for several months or only get out on the weekend or have several bikes, you could substantially reduce your premiums.

It will be launched first in Arizona, Illinois, Indiana, and Ohio and is underwritten by Markel American Insurance Company.

VOOM says its research shows that the risks associated with low-mileage riding can be more than 80% lower than that of high-mileage motorcycling. 

Some other products do allow riders to stall their insurance during winter months, but this is the first pay-as-you-go system in the world, the company claims.

VOOM  does not require a physical device or mobile app to track mileage or behaviour. Instead, riders simply submit a photo of their odometers every month.

Coverage is accompanied by online policy management, and varied other coverage options available to qualified riders, including liability, comprehensive, medical payments, collision, uninsured motorists, and accessory coverage. 

  1. It’s very interesting to learn about paper mile insurance schemes that let you only get coverage for only a limited number of kilometers you’ve used while riding. I think this is beneficial and could even save a lot of money in paying for a policy you won’t get to use. I might just consider this when I buy a motorcycle for my son next year.

  2. Hell yeah.
    I’d vote for that Mark.
    I’ve got 5 bikes that hardly have been touched in the last 18+ months. And even prior to COVID, they’d only be used maybe 4-6 times each per annum. Weather, kids, Grandkids, life, etc etc etc. When you use stuff sparingly, it’s like the “first date” syndrome all over again each time!
    Obviously I can only use 1 at a time and I pay rego ( and comprehensive insurance) whilst they sit there.
    I’ve cut rego costs with single seat rego and club rego; but it’s still a significant impost to me.
    And before others tell me it’s my fault or I’m a whiner or I ought to be grateful or I shouldn’t have that many bikes in the first instance; well, they can just get stuffed.

    I love 2 wheels- always have- and I have bikes I lusted over, but could never afford.
    Why can’t I ride a bike from the 70s; the 80s; the 90s; up to 2008?
    I’m an average person who worked hard and long, and bought bikes for my dotage.
    It’s just the costs I incur while not using them that hurts. And when I don’t use them, obviously I can’t potentially cost an Insurance company or Third party anything.
    I think that’s a great ( and fair) idea: but I can’t imagine it’ll catch on in OZ.
    Our Guvmints and Insurance Companies aren’t that ‘free-thinking’ enough.

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