Cimarron Insurance Company, in partnership with Mile Auto, Inc., has received approval to introduce a new pay-per-mile auto insurance program in Colorado, effective February 12, 2025. The program offers personal auto insurance with mileage-based pricing and is administered by Mile Auto, Inc. as the managing general agent.

Premiums combine a fixed base rate with a variable per-mile charge. For example, one driver’s six-month estimated premium was $328.92, while another’s was $820.84, depending on vehicle type, credit tier, coverage selections, and mileage. While the filing does not specify how mileage is tracked, digital monitoring is likely based on industry standards.

Rating variables include age, education, occupation, prior insurance, credit tier, and vehicle safety features, and the algorithm mirrors that used in Progressive’s Colorado personal auto program. The filing includes compliance with state regulations such as a $100 collision deductible option, named driver exclusions, UM/UIM selection disclosures, and an appeal process for decisions based on driving history.

The Colorado Division of Insurance flagged the use of tenure as a non-compliant composite rating factor. In response, Mile Auto removed tenure from its Residency Rewards and instead incorporated it into a separate, actuarially supported accident-free discount.

The program also includes a $5.00 convenience fee, a $0.50 auto theft prevention fee, and a $7.00 policy fee.