American Family Insurance Introduces New Program that Rewards Policyholders Who Drive Less
MilesMyWay program gives customers more control over what they pay for auto insurance
American Family Insurance has partnered with Cambridge Mobile Telematics (CMT), the global leader in smartphone telematics, to create MilesMyWay, a new, first-of-its-kind auto insurance program that rewards drivers for driving less. The app-based program is a pay-as-you-drive (mileage-based) telematics offering that allows drivers to earn rewards each month based on the exact mileage they drive, to allow drivers to adapt their auto policies to their changing driving habits due to the COVID-19 pandemic.
The program, which is built on CMT’s DriveWell smartphone telematics platform and uses its IoT Tag technology, will first be offered to eligible Arizona customers before rolling out to other operating states throughout 2021.
How it works
Policy holders can receive savings totaling up to 25% of their monthly premiums, which start when an enrolled vehicle is driven less than 8,000 miles per year – or about 667 miles per month. Drivers won’t be penalized or charged more for driving more – they’re rewarded for driving less. Mileage is accurately measured with the MilesMyWay app and a small windshield-mounted sensor paired via Bluetooth. The program is available to customers who drive less than the average of 10,000 miles annually.
“The COVID-19 pandemic continues to change consumer driving habits and consumers’ expectations of how they pay for their auto insurance,” said Jenny Sankovsky, American Family product strategy and innovation director, “The MilesMyWay app ensures that as customers’ habits change, so does our service. We owe it to policy holders to continue to adapt to their needs during this unprecedented time.”
Different from other programs
Other mileage-based programs leave customers with changing premiums based on their monthly mileage. Since MilesMyWay is an earned savings program, customers know the maximum amount they will pay each month, with only their reward adjusting based on mileage. A policy holder will not be charged more if they exceed the 8,000 miles in one year, though this may spur a recommendation for policy adjustments to better fit customer lifestyle and needs.
“We’re excited to work with American Family to launch this innovative program that gives drivers more control over their auto insurance,” said Hari Balakrishnan, CMT’s co-founder and CTO. “We’ve seen big changes to how people commute daily and travel on longer trips; MilesMyWay is great use of our technology that measures driving accurately and in near-real time.”
Our commitment to our customers and communities during the pandemic
The MilesMyWay program has been accelerated due to the COVID-19 pandemic and is one of many ways we are servicing customers during the unprecedented health crisis. In November, American Family Insurance announced the fourth installment of our premium relief program. Throughout 2020, the company’s two foundations – the American Family Insurance Dreams Foundation and the Steve Stricker American Family Insurance Foundation – committed nearly $7 million to non-profit organizations, including those providing COVID-19 relief, to support their efforts to provide for those in need.
Interested customers should talk with their agents about eligibility for the MilesMyWay program.
About the American Family Insurance group
Based in Madison, Wisconsin, American Family Insurance has been serving customers since 1927. We inspire, protect and restore dreams through our insurance products, exceptional service from our agency owners and employees, community investment and creative partnerships to address societal challenges. We act on our belief in diversity and inclusion by constantly evolving to meet customer needs and preferences. American Family Insurance group is the nation’s 13th-largest property/casualty insurance group, ranking No. 254 on the Fortune 500 list. The group sells American Family-brand products, primarily through exclusive agency owners in 19 states. The American Family Insurance group also includes CONNECT, powered by American Family Insurance (formerly Ameriprise Auto & Home), The General, Homesite and Main Street America. Across these companies the group has more than 13,500 employees nationwide.
About Cambridge Mobile Telematics
At Cambridge Mobile Telematics, we show up every day to achieve one goal: to make the world’s roads and drivers safer. Founded in 2010 based on MIT research, we are now the world’s largest mobile telematics provider, powering 65 enterprise programs in more than 28 countries. Our technology serves several million drivers a day through our partnerships with leading insurers, rideshares, cellular carriers and car makers. We deliver cutting-edge technology to solve the most important problems facing mobility today and to improve road safety across the world.