Last week CSE Safeguard Insurance Company proved that verified-mileage auto policies won’t be limited to the largest insurers in California.  They are 70th largest in the state, and plan to offer their verified-mileage SAVE program immediately after approval.  The only insurers filing before them were the state’s largest auto insurer State Farm and second-largest Auto Club of Southern California.  Both were recently approved and launch this month.

Here is how these three verified-mileage plans are similar:

  • Any privately-insured vehicle can be covered through “self-reporting” of odometer readings by the vehicle owner to the insurer
  • The insurer reserves the right to independently verify accuracy of such “self-reported” odometer readings

Here are some ways they differ:

  • CSE only offers the “self-reported” alternative; State Farm also offers a “device-based” alternative for OnStar equipped vehicles,  and Auto Club offers a “device-based” choice using a telematics device supplied by Delphi that can be attached to most vehicles
  • State Farm and Auto Club start with a fixed discount for the first policy period, but CSE does not; their SAVE program  immediately starts its full verified-mileage discount based on expected annual mileage
  • CSE “trues up” mileage for their discount calculation at the end of each policy term based on actual miles driven; fewer miles than expected earn a refund, and more miles than expected require more payment
  • Approaches to independently verify “self-reported” odometer readings may be quite different
  • State Farm may require independent odometer readings
  • CSE may accept a recent photograph of the odometer, a recent oil-change invoice with mileage indicated, or a recent smog certification showing an odometer reading
  • Auto Club may use any approach that meets regulations