Car

Smart Car Insurance — Illustrative Pricing Model

Smart Car Insurance is designed for experienced, responsible drivers with strong driving records and verified vehicle mileage.

Pricing concept:

$600 annual base premium + $0.06 per verified mile

Annual Mileage	Illustrative Annual Premium
5,000 miles	$900
7,500 miles	$1,050
10,000 miles	$1,200
12,000 miles	$1,320
14,000 miles	$1,440

The base premium recognizes fixed exposures that remain even when mileage is low, including comprehensive losses, theft, weather, parked-vehicle losses, and fixed policy/claims costs.

The mileage charge reflects increasing collision and liability exposure as miles driven increase.

Target Risk Profile

No recent at-fault accidents
No serious moving violations
No DUI/DWI or reckless-driving history
Defined vehicle, coverage, and geographic eligibility
Verified annual mileage

Loss-Cost Objective

At a $900 premium, a 50%–55% target loss ratio supports approximately $450–$495 in expected annual losses per vehicle.

The program is designed around:

Preferred-risk selection + severity controls + verified mileage = lower and more predictable loss costs

Illustrative pricing only. Final rates and underwriting criteria are subject to actuarial validation, carrier/reinsurance approval, regulatory requirements, and applicable rate filings.