System and method for the assessment, pricing, and provisioning of distance-based vehicle insurance

Abstract

A system and method for assessing, pricing, and provisioning distance-based vehicle insurance are provided. In one example, the method receives identification information of a customer and an associated vehicle, and a current odometer reading. Multiple coverage types are provided to the customer, as is at least one quote when the customer selects one of the coverage types. The quote includes a policy rate identifying a cost per distance unit based on the identification information. The customer is provided with multiple items based on the quote, where each item includes a total number of distance units for purchase at the policy rate. An insurance policy may be purchased in response to the customer selecting one of the items. The insurance policy's coverage is based on an expiration odometer value defined as the sum of the current odometer reading and the total number of distance units included in the selected item.

1 . A method for assessing, pricing, and provisioning distance-based vehicle insurance, the method comprising: 
 receiving identification information of a customer and an associated vehicle;    receiving a current odometer reading of the vehicle;    providing a plurality of coverage types to the customer;    providing the customer with at least one quote upon receiving a selection from the customer of one of the coverage types, wherein the quote includes a policy rate identifying a cost per distance unit based on the customer and vehicle identification information;    providing the customer with a plurality of pre-calculated items based on the quote, wherein each item includes a total number of distance units for purchase at the policy rate; and    performing a purchase transaction for an insurance policy in response to the customer selecting one of the items for purchase, wherein coverage provided by the insurance policy is based on an expiration odometer value defined as the sum of the current odometer reading and the total number of distance units included in the selected item, and wherein the current odometer reading is not audited prior to or during the purchase transaction.    
   
   
       2 . The method of  claim 1 , wherein the step of receiving a current odometer reading of the vehicle further comprises receiving an odometer reading of the vehicle from the customer.  
   
   
       3 . The method of  claim 1 , further comprising: 
 receiving an updated odometer reading of the vehicle;    calculating whether the updated odometer reading is within a predefined number of distance units from the expiration odometer value; and    notifying the customer if the updated odometer reading is within the predefined number of distance units.    
   
   
       4 . The method of  claim 3  wherein notifying the customer includes offering the customer a renewal option to purchase additional insurance.  
   
   
       5 . The method of  claim 3  wherein the updated odometer reading is received from at least one of emission testing of the vehicle, maintenance of the vehicle, sale of the vehicle, purchase of the vehicle, registration of the vehicle, and an accident record of the vehicle.  
   
   
       6 . The method of  claim 1 , further comprising: 
 receiving an insurance claim from the customer;    determining if the purchased insurance has expired; and    calculating a premium insurance amount if the purchased insurance has expired, wherein the premium insurance amount must be paid by the customer before the insurance claim is paid.    
   
   
       7 . The method of  claim 6 , wherein the premium insurance amount is calculated based on the vehicle's odometer reading at the time of the insurance claim, the expiration odometer reading, the policy rate, and an adjustment value.  
   
   
       8 . The method of  claim 1 , further comprising: 
 receiving an identification of a referring customer from the customer;    calculating a distance-based credit for the referring customer based on the insurance policy; and    crediting an insurance account associated with the referring customer.    
   
   
       9 . The method of  claim 8 , wherein crediting the referring customer's insurance account includes adding additional miles to the account.  
   
   
       10 . The method of  claim 9 , wherein the additional miles are equal to ((a percentage)*(a dollar value of the insurance policy purchased by the customer))/(the referring customer's policy rate).  
   
   
       11 . The method of  claim 1 , wherein the coverage provided by the insurance policy is also based on a predefined period of time.  
   
   
       12 . The method of  claim 11 , further comprising: 
 determining whether a current odometer reading at the end of the predefined period of time is greater or lesser than the expiration odometer value; and    charging the customer for the difference between the current odometer reading and the expiration odometer value if the current odometer reading is greater, or crediting the customer for the difference between the current odometer reading and the expiration odometer value if the expiration odometer value is greater.    
   
   
       13 . A method of providing automobile insurance, the method comprising: 
 receiving customer information from a customer;    receiving automobile information from the customer, the automobile information including a first odometer reading of an automobile;    determining a rate based upon the customer information and the automobile information;    offering at least one insurance policy option, the at least one option including an offer to insure the automobile at a cost per unit distance of coverage;    receiving a customer selection of a number of units of distance of coverage;    receiving a payment for the number of units of distance of coverage, the payment based on the cost per unit distance; and    insuring the customer and automobile while a current odometer reading of the automobile is less than the sum of the first odometer reading and the customer selection of a number of units distance of coverage;    wherein an odometer audit is not performed prior to initiating coverage for the automobile and customer.    
   
   
       14 . The method of  claim 13 , wherein the step of offering at least one insurance policy option further comprises offering a plurality of coverage limits.  
   
   
       15 . The method of  claim 13 , further comprising obtaining an odometer audit before paying an insurance claim resulting from insuring the customer and automobile.  
   
   
       16 . The method of  claim 13 , wherein no odometer tracking device is placed on the vehicle.  
   
   
       17 . A method of providing automobile insurance, the method comprising: 
 receiving customer information from a customer;    receiving automobile information from the customer, the automobile information including a first odometer reading of an automobile;    determining a comprehensive insurance rate based upon the customer information and the automobile information;    determining a collision and liability insurance rate based upon the customer information and the automobile information;    offering at least one insurance policy option, the at least one option including an offer to insure the customer and automobile at a rate per unit of time for comprehensive insurance and a cost per unit distance for liability and collision insurance;    providing comprehensive insurance to the customer and automobile while a customer selected unit of time has not lapsed; and    providing collision and liability insurance to the customer and automobile while a current odometer reading of the automobile is less than the sum of the first odometer reading and a customer selected of a number of units distance of coverage;    wherein an odometer audit is not performed prior to initiating coverage for the automobile and customer.    
   
   
       18 . The method of  claim 13 , wherein the step of offering at least one insurance policy option further comprises offering a plurality of coverage limits for the liability and collision insurance.  
   
   
       19 . The method of  claim 17 , further comprising obtaining an odometer audit before paying a claim.  
   
   
       20 . The method of  claim 17 , wherein the automobile is not provided with an odometer monitoring device.