A Texas car company has begun offering Texans car insurance by the mile. The Dallas Company has invented the MileMeter which specifically aims at drivers who drive fewer than 12,000 miles a year. It is also the only car insurer to offer mileage-based insurance in the state.

Chief Executive Chris Gay of MileMeter said the company launched the car device to offer low rates: “It's very difficult to get into an accident when your car is parked. The less you drive, the less risk you're exposed to.”

MileMeter charges from 3% to 20% per mile, depending on the coverage options chosen and it takes the driver’s word on the odometer reading. The policy lasts for six months.

The device however favours those who will not need physical damage coverage as it significantly increases the cost of the policy and those who want minimal coverage for liability which the state requires. The highest liability offered is $50,000 per person and $100,000 per road accident.

Gay stated that the MileMeter was simple and inexpensive and was launched because he was tired of an “ossified, bureaucratic” insurance industry that sells insurance that customers don't need. “The industry has had every opportunity to offer by-the-mile insurance and has chosen not to do so.”