Farmers Insurance has announced that is launching its new usage-based commercial auto insurance program, FairMile, in Washington state. FairMile allows business owners to choose per-mile insurance pricing, affording them the opportunity to save money when business vehicles are not being driven.
“Farmers is excited to bring the FairMile program to the small business community in Washington,” said Aaron Cruz, product development lead for the FairMile program. “At Farmers, we are deeply committed to innovating based on the emerging needs of our customers. We recognize that all businesses are created differently, but for many, driving operations can change from day to day or from season to season. The FairMile program provides a flexible option for customers who prefer usage-based pricing to address this variability. As an added value, we look forward to providing our customers with insightful vehicle information displayed via the FairMile app. This new offering is just the latest demonstration of our commitment to meeting needs of an evolving marketplace.”
In an internal survey of business insurance customers, Farmers found that while 33% were already likely to use telematics technology, 75% said they would be likely to use telematics if it meant additional savings on their insurance policy. The survey also found that businesses that preferred a per-mile pricing concept tended to be smaller in size.
Under the FairMile program, premium is based on the actual miles driven in each business vehicle insured by a Farmers commercial auto policy. Farmers said the policy could be well-suited to customers who have a cyclical or seasonal business, such as landscapers, businesses where driving is infrequent, or businesses where certain vehicles are used sparingly.
