Pay-Per-Usage Or “Prepaid” Insurance?

I might be hoping for too much here and I have already made a long serious of requests for future insurance policies but I have one more for today. I would absolutely love to see more “pay-per-usage” insurance or even pre-paid. For example:

Car insurance that charges “per mile”: It doesn’t take a genius to know that this would be very popular. If someone knows he will be barely driving but would like to get some insurance at a decent price, the current system does not really make it possible. I think there would clearly be demand for this and it could be monitored with the car meter.

Travel Insurance: For those of us that do multiple trips per year, getting decent insurance means either paying for insurance all the time or getting coverage for every individual trip. Why not simply enable me to buy 30 days of coverage and then let me simply advise the company through the web or an app when I will be using those days. Of course, that would be my responsibility and not doing it would mean not being covered. Still, I feel like this would make my (and many others) life much easier.

This could without any doubt be applied to many other types of products and I would certainly be saving a lot of time. The challenge here will be finding a company that is willing to innovate and come up with such policies. It would be different, need to get a lot of traction and be seen as a major threat by the more established/traditional insurers.

What are your thoughts on this? Am I the only who thinks this could be a very innovative idea?

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