Tailoring Automotive Insurance to Consumer Driving Habits | Mile Auto | FF Virtual Arena #343

Tailoring automotive insurance to consumer driving habits.

In the latest FF Virtual Arena, we spoke to Fred Blumer, CEO of Mile Auto, an exciting Insurtech startup that leverages mileage data to offer fairer pay-per-mile auto insurance for drivers. It’s built as a response to consumer trends such as the rise in remote work and it aims to make insurance more tailored to the individual.

We also cover how this technology has potential environmental benefits on top of potential lower premiums. Watch the video to find out more and catch more conversations with founders on our website.  

Fred Blumer’s Journey: From Telematics to Insurance Disruption

The discussion began with an insight into Fred Blumer’s career so far. He’s CEO and co-founder of Mile Auto and Porsche Auto Insurance and has over two decades of experience in the connected vehicle industry. Early on he co-founded Hughes Telematics, designing systems for major automotive manufacturers like Mercedes-Benz and Nissan. A turning point came when he realised the significance of mileage data in determining insurance risk. While vehicle data streams offered insights into driving behaviours, Blumer identified a privacy concern: consumers might not want insurers to have access to sensitive data like location or driving habits. This epiphany led to the creation of Mile Auto, which just looks at mileage data.

The Appeal of Pay-Per-Mile Insurance

Low-mileage drivers often lose out when getting insurance from traditional insurers, due to subsidising high-mileage, higher-risk drivers. Mile Auto flips this model, offering a fairer pricing structure for those who drive less, such as remote workers, empty nesters, and families with extra vehicles. By focusing only on mileage and traditional underwriting data, Mile Auto ensures a transparent and privacy-conscious approach. Customers simply submit odometer photos monthly, avoiding invasive GPS or behavioural tracking.

The low-mileage segment is substantial: 60% of U.S. vehicles travel fewer than 10,000 miles annually, representing a $200 billion market opportunity. During the pandemic, when remote work became the norm, Mile Auto saw significant growth as consumers re-evaluated the cost of insuring cars that sat idle.

Balancing Data and Privacy

Blumer emphasised that while insurers have traditionally been enamoured with vast amounts of vehicle data—speed, acceleration, location, and more—this approach often overlooks consumer privacy concerns. He shared anecdotes from his earlier career, where sensitive data was subpoenaed for non-insurance purposes, underscoring the risks of over-collection. Mile Auto’s approach prioritises minimal data collection, using computer vision and machine learning to ensure accuracy without compromising privacy.

Interestingly, most Mile Auto customers prefer submitting odometer photos over sharing data directly from connected vehicles, citing mistrust in automakers’ data-sharing practices. This reinforces the importance of transparency in building consumer trust.

Partnership with Porsche

Another exciting topic in the conversation was around Mile Auto’s collaboration with Porsche Financial Services highlights its ability to customise offerings for niche markets. Porsche Auto Insurance, launched in 2019, caters to Porsche drivers’ unique needs, including agreed value coverage (critical for cars that appreciate over time), access to OEM parts, and certified repair shops. This bespoke product aligns with Porsche’s brand values and its customers’ passion for their vehicles, resulting in high satisfaction and retention rates.

Blumer noted that this partnership stems from a shared philosophy: respecting customer privacy while delivering tailored solutions. Unlike insurers that track driving behaviour, Mile Auto’s model resonates with Porsche cus