Nationwide rolls out pay-per-mile insurance in Ill.

Nationwide has launched SmartMiles, a telematics-based auto insurance product targeted at low-mileage drivers.

Unlike its SmartRide program, which targets the wider insurance market by promising lower rates based on driving habits -- the "pay-how-you-drive" model -- SmartMiles is "pay-as-you-drive," with charges tied to mileage driven. However, it still incorporates the same technolgical framework, allowing Nationwide to offer customers the ability to shift from SmartMiles to SmartRide and vice versa, or have cars in the same household on different programs based on how often certain cars are driven.

“SmartMiles was developed to provide a program that allows our customers the freedom to control their auto insurance expenses based on how much they drive and how safe they drive,” says Teresa Scharn, Nationwide associate vice president. “Whereas most insurance companies’ mileage-based insurance programs look only at miles driven, Nationwide’s SmartMiles telematics program takes many factors into account, creating a more personalized offering."

Nationwide was not able to provide additional comment before this story's publication. In 2017, Scharn's predecessor, Larry Thursby, told Digital Insurance that “The idea of pay-per-mile has been around a long time, but the tech to enable its delivery is [now] available,” he said. “Transparency as you move to pay-per-mile is important and we’ve learned through customer experiences how they want to engage.”