SYSTEM AND METHOD FOR THE ASSESSMENT, PRICING, AND PROVISIONING OF DISTANCE-BASED VEHICLE INSURANCE

• US 20070156468A1
• Filed: 03/14/2007
• Published: 07/05/2007
• Est. Priority Date: 10/29/2004
• Status: Active Grant

• Current Assignee: State Farm Mutual Automobile Insurance Company (State Farm)
• Original Assignee: Milemeter, Inc.
• Inventors: GAY, CHRIS, McKinney, John, Fellows, Jeffrey, Duncan, Leonard
• Granted Patent: US 7,991,629 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G07G 1/12 electronically operated digital data processing aspects G06Q20/00

Abstract

A method of assessing, pricing, and provisioning distance-based vehicle insurance is disclosed. The method includes receiving a vehicle identification number of a vehicle to be insured from a customer, receiving an preliminary odometer reading of the vehicle to be insured from the customer, and obtaining from the customer a legally binding declaration that the preliminary odometer reading is true and accurate. The method includes insuring the vehicle during a policy period defined by coverage for a preselected number of units distance from the preliminary odometer reading.

Claims

1. A method of assessing, pricing, and provisioning distance-based vehicle insurance, the method comprising:

receiving a vehicle identification number of a vehicle to be insured from a customer;

receiving an preliminary odometer reading of the vehicle to be insured from the customer;

obtaining from the customer a legally binding declaration that the preliminary odometer reading is true and accurate; and

insuring the vehicle during a policy period defined by coverage for a preselected number of units distance from the preliminary odometer reading.

2. The method of claim 1, wherein the policy period is further defined by a predetermined expiration date after which no insurance will be provided under the policy period.

3. The method of claim 1, wherein the step of obtaining from the customer a legally binding declaration that the preliminary odometer reading is true and accurate is performed online.

4. The method of claim 1, further comprising storing the preliminary odometer reading in a relational database record.

5. The method of claim 1, further comprising verifying the preliminary odometer reading against an internal database.

6. The method of claim 1, further comprising verifying the preliminary odometer reading against an external database.

7. The method of claim 1, further comprising verifying a second odometer reading of the vehicle, before paying a claim

8. The method of claim 1, further comprising verifying a second odometer reading of the vehicle before issuing a policy refund.

9. The method of claim 1, further comprising verifying a second odometer reading of the vehicle before rolling any over unearned units distance of coverage as credit to any subsequent policy for the customer.

10. The method of claim 1, further comprising accepting a subsequent odometer reading from the customer.

11. The method of claim 1, further comprising allowing the customer to provide a second preliminary odometer reading when it is determined that the first preliminary odometer reading is less than a previously reported odometer reading.

12. The method of claim 11, wherein the previously reported odometer reading is obtained from a trusted source other than the customer.

13. 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 an original odometer reading of the vehicle from the customer and associating the reading in a database with the identification information of the vehicle;

providing the customer with at least one quote including a policy rate identifying a cost per unit distance; and

upon receiving at least partial payment from the customer, insuring the vehicle during a policy period defined to be the earlier of the completion of travel by the vehicle of a preselected number of units distance and a predetermined expiration date.

14. The method of claim 13, further comprising accepting at least one additional odometer reading from the customer, the additional odometer reading being subsequent to the original odometer reading, and associating the subsequent odometer reading in the database with the identification information of the vehicle.

15. The method of claim 14, further comprising determining a suggested number of units distance for a renewal insurance policy for the vehicle based on the original odometer reading and the at least one additional odometer reading.

16. The method of claim 13, further comprising obtaining a trusted odometer reading of the vehicle from a source other than the customer prior to settling a claim on the vehicle and dishonoring the claim if the trusted odometer reading is in excess of the original odometer reading plus the preselected number of units distance.

17. The method of claim 13, further comprising obtaining a trusted odometer reading of the vehicle from a source other than the customer prior to issuing a refund or credit for a policy on the vehicle.

18. A system for assessing, pricing, and provisioning distance-based vehicle insurance, the system comprising:

a processor configured to receive user and vehicle information, including a first odometer reading of the vehicle, and to provide at least one insurance policy quote that expires the earlier of travel by the vehicle of a predetermined number of units distance and the occurrence of an expiration date; and

means for verifying a current odometer reading of the vehicle that does not require a vehicle-mounted tracking, monitoring, or auditing device.

19. The system of claim 18, wherein the means for verifying comprises a third-party database.

20. The system of claim 18, further comprising means for storing a plurality of odometer readings associated with the vehicle.