Pay For Insurance By The Mile?
The Voom site.
Many years ago I bought a junker of a pick-up truck to haul materials for some landscaping I was doing at home. This was not a vehicle you would drive for any other reason. It had been in a crash and the frame was bent, so it was one of those things that look like they’re going sideways down the road. Mostly it sat parked in my garage.
It didn’t take me long to figure out, however, that for what I was paying in insurance on it each year I could save money by paying to have this rock and compost and other stuff delivered. So I sold the truck.
A lot of people who have motorcycles don’t really ride them all that much. If you only ride the bike about 1,000 miles a year but you’re paying $200 for insurance that would come to 20 cents per mile ridden. If you put 10,000 miles on that bike you’re only looking at 2 cents a mile. What if you could get insurance where you pay for the actual mileage you put on the bike?
This is actually an option in some states (Arizona, Illinois, Ohio, Indiana). There is a motorcycle insurance company called Voom Insurance that does exactly that. Ron Khirman from Voom contacted me recently asking if I would like to work with them on getting the word out about their company. In exchange for putting up a blog post (this post) they would pay me $50. Check them out, write whatever I feel is appropriate. I said I was interested in their offering but if they were going to pay me I would need to let you, the readers of this blog, know that. “Fine by us,” Ron replied.
So I checked them out. Ron sent me to a link that is presumably a dummy page so I wouldn’t accidentally purchasing insurance that would do me no good–I’m in Colorado and they do not yet operate in Colorado. The first thing that happened was that Norton Antivirus deemed this a dangerous choice and I had to tell it no, I really do want to go to the site. I got no such response when I went to the actual site in the link above. In the meantime I was able to get the information I needed.
For starters, Voom offers three plans at varying price points: Essentials, Popular, and Extended. With Essentials the monthly base rate is $4 and 1 cent per mile. For Popular it is $9 a month and 4 cents per mile. With Extended it is $35 a month and 13 cents per mile. If you go with Popular it adds in comprehensive and collision and going to Extended also includes uninsured, underinsured, and body injury.
The basic quote on my V-Strom.
They also offer the usual deductions for things like having a motorcycle endorsement on your driver’s license, taking a rider safety course, and that sort of thing. I have those so I took those deductions.
So how does this work out for me? Would I benefit by paying per mile for my insurance?
Well, last year I rode the V-Strom 1,046 miles. Taking the basic coverage that would work out to $35.66, whereas I now pay GEICO $145.02 per year on that bike. (OK, an update on Dec. 1: I did the math wrong. I think I misread that quote. By my recalculation it would cost me $60.62 per year. That’s still a heck of a savings.) I tried adding my other bikes onto the policy and it didn’t alter the general equation very much. It would seem that I could save a good bit of money going with a policy like this.
I don’t know. Maybe there’s something I’m missing here but this looks like a pretty sweet deal. If it was offered in Colorado I would definitely check it out further. But it isn’t, so for now I won’t. Get back in touch with me then, guys, OK? If any of you readers give this a shot let me know how it turns out. Thanks.
Biker Quote for Today
You know you’re a biker if you only took the job to pay for your trip to Sturgis.
