Pay per Mile Car Insurance Now a Reality Announces the Internets Largest Automotive Insurance Comparison Website

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More and more pay per mile car insurance appears to now be a reality announces the Internets largest automotive insurance comparison website.

Pay as you drive reflects large scale changes in motoring habits and in so doing accommodates the changing needs of motorists.

Just two days ago, a reporter by the name of Macharia Kamau spread the word about a remarkable new way to pay car insurance in Kenya: Usage-based. Gateway Insurance Company is now offering Pay Per Mile Car Insurance to its customers. (source:

Gateway is not the first insurance company to offer this unique program, as Kamau points out, but is joining companies in the USA, Israel, Netherlands, United Kingdom, Australia and South Africa in forging new frontiers where it comes to car insurance. Pay Per Mile Car Insurance is an example of how insurance companies are using modern technology in such a way that the end result is lower premiums for consumers.

Currently, the common arrangement for car insurance is that the car owner pays a set premium for the coverage they want, either monthly, quarterly or yearly. New technology allows car insurance companies to provide a device that gets installed into the customer’s car at purchase. This device records the actual distance traveled in the car each time it is driven. This allows the company to create premiums based on the actual distances traveled.

Gateway's program provides a way for consumers to have a wider amount of control over their overall cost of insurance. Customers must purchase a minimum balance of 5000km and can purchase more using their cell phones should they need it. If there is any amount of kilometers left over the initial 5000 at the end of the pay period, that extra amount rolls over into the next pay period. This methodology is very similar to how cell phone minutes are paid for on many plans. The flexibility of this arrangement means that drivers who only use their cars once a week are not going to be paying the same overall amount as drivers who travel great distances every day. The beauty of this system is that it allows the car insurance shopper a greater amount of flexibility when budgeting, giving them the opportunity to make other transportation plans to bring their monthly expenditures down as needed. Many consumers today already car-pool or utilize bicycles in an effort to reduce their impact on the earth. Now they can have the added benefit of reducing the impact on their wallets.

While it’s not a terribly common practice yet, Pay Per Mile Car Insurance may come as a welcome change to motorists in today’s world. Consumers today seem to be largely concerned about two things: The economy and the environment. It happens that conserving fuel for the sake of their wallets also has a positive impact on the environment.

Gateway CEO, Godfrey Kioi sums it up nicely: “Pay as you drive reflects large scale changes in motoring habits and in so doing accommodates the changing needs of motorists.”

Gateway’s reasons for offering this new program may be a reflection of the auto insurance sector’s attitude as a whole. Recent changes in modern technology have pushed the car insurance sector into considering new ways of pricing motor insurance premiums. The insurance sector is not alone in evolving their business practices. Banks have restructured the way they do business, as an example, and it would seem that for automobile insurance companies to stay ahead of the curve as far as profits and products are concerned, the use of modern technology is key to success. This technology not only puts pricing into the hands of consumers but it also assists insurance companies in identifying and eliminating fraud.

In an age where change is constant and growth is the goal, Pay Per Mile Car Insurance seems win-win, for both consumers and insurance companies.

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Rudi Gevorgyan
NetWealth, LLC
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Clint Dixon
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