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

• US 7,991,629 B2
• Filed: 03/14/2007
• Issued: 08/02/2011
• 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, Duncan, Leonard D., McKinney, John C., Fellows, Jeffrey R.
• Primary Examiner(s): Kramer; James
• Assistant Examiner(s): Fu; Hao
• Application Number:
  US11/685,947
• Publication Number:
  US 20070156468A1
• Time in Patent Office: 1,602 Days
• Field of Search: 705/4
• 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 computer system for assessing, pricing, and provisioning distance-based vehicle insurance comprising:

a computer processor; and

a computer memory accessible to the computer processor, the computer memory and computer processor being communicatively detached from a customer associated vehicle, wherein the computer memory comprises a plurality of instructions which, when executed by the computer processor, perform a method, the method comprising;

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

receiving from the customer via a computer network a preliminary odometer reading of the vehicle to be insured, the customer providing the reading without an electronic tracking device attached to the vehicle or odometer and without a third party audit;

providing a plurality of coverage types to the customer;

providing the customer with at least one quote upon receiving an input selecting 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 number;

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;

performing a purchase transaction for an insurance policy in response to input from the customer electing 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 a preliminary odometer reading and the total number of distance units included in the selected item;

obtaining from the customer via the computer network 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 without a third party audit or electronic tracking device installed on the vehicle.

2. The system 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 system of claim 1, further comprising instructions for storing the preliminary odometer reading in a relational database record.

4. The system of claim 1, further comprising instructions for verifying the preliminary odometer reading against an internal database.

5. The system of claim 1, further comprising instructions for verifying a second odometer reading of the vehicle, before paying a claim.

6. The system of claim 1, further comprising instructions for verifying a second odometer reading of the vehicle before issuing a policy refund.

7. The system of claim 1, further comprising instructions for 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.

8. The system of claim 1, further comprising instructions for accepting a subsequent odometer reading from the customer.

9. The system of claim 1, further comprising instructions for 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.

10. The system of claim 9, wherein the previously reported odometer reading is obtained from a trusted source other than the customer.

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

a computer processor; and

a computer memory accessible to the computer processor, the computer memory and computer processor being communicatively detached from a customer associated vehicle, wherein the computer memory comprises a plurality of instructions which, when executed by the computer processor, perform a method, the method comprising;

receiving identification information of a customer and an associated vehicle;

receiving from the customer via a computer network an original odometer reading of the vehicle from the customer and associating the reading in a database with the identification information of the vehicle, the customer providing the reading without an electronic tracking device attached to the vehicle or odometer and without a third party audit;

providing a plurality of coverage types to the customer;

providing the customer with at least one quote upon receiving an input selecting 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 number;

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

in response to input from the customer electing one of the items for purchase 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, without a third party odometer audit or electronic monitoring device attached to the vehicle.

12. The system of claim 11, further comprising instructions for accepting at least one additional odometer reading from the customer, the additional odometer reading being subsequent to the original odometer reading, and instructions for associating the subsequent odometer reading in the database with the identification information of the vehicle.

13. The system of claim 12, further comprising instructions for 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.

14. The system of claim 11, further comprising instructions for obtaining a trusted odometer reading of the vehicle from a source other than the customer prior to settling a claim on the vehicle and instructions for dishonoring the claim if the trusted odometer reading is in excess of the original odometer reading plus the preselected number of units distance.

15. The system of claim 11, further comprising instructions for 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.