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hey guys and welcome back to another stock review video and today i'm going to be going over metro mile but before we get into that i just wanted to say a happy thanksgiving to all of you we're certainly grateful for everyone who watches our videos and has been supporting us recently and especially to our loyal subscribers as we make our way to our goal for the year which was a thousand subscribers because of you guys we're on track to hit that goal by the end of the year and that means a lot now metro mile could be a great fit for someone who's looking for one of these spak stocks that's going to be a little bit more reliable in the long term something a little less volatile than all of these electric vehicle stocks and technology stocks because it's an insurance stock now it's not just any insurance stock though and we'll get to that in just a minute but you can see here that over 65 of drivers are being over charged for their insurance this is obviously in comparison to the amount of miles that they actually put on their car and the amount of repairs or damage that ends up being done to their car in the traditional insurance model drivers are assigned to a class and everyone in that class is going to pay the same rate regardless of the small details that may actually make a big difference when it comes to how much the insurer is going to have to pay for you to drive specifically one of these details is the amount of miles that you drive and that's why metro mile is making the difference for a lot of people when it comes to the amount that they're paying for their insurance metro mile does things differently with a small fee of just 29 and then from there you're gonna pay 5.4 cents per mile and that's on average obviously this is different when it comes to your risk and the amount of miles that you end up driving you can see here that if you end up driving 2 000 miles per year you're gonna save a thousand dollars per year if you drive six thousand miles per year you're going to save 750 and if you drive 10 000 you're gonna save 500 per year this is calculated based on the average of other insurers the auto insurance market is obviously huge with all of the people that need to have insurance for their car you can see that it's right around 250 billion dollars in the united states and it's 700 billion worldwide luckily for a small company like metro mile no u.s carrier has more than 20 percent of the market share and what that means is that people are fairly undecided on what the best insurance company is for a young company this allows them to have a chance to really take over the market because of the fact that none of these other companies has a firm grasp on it yet one of the reasons that i think this goal could be possible for metro mile is their great retention rate you can see that the average person stays with the company for at least 3.4 years and once they hit that one year mark that number jumps up to around 5.2 years also if you look at this chart once you hit around 50 months you can see that they're approaching a 99 retention rate of all of their current customers and what this means is that people are enjoying their product and so they're not willing to leave and try out another insurance company and this is great for a young company because if you're not losing many customers and you're getting new customers to try out your product that's a great formula for success and to take over the market the way that a lot of people's quotes are being created is through this process called right along and basically what that is is you're gonna go into the app you're gonna set up the whole process and you're just gonna drive as usual for it says right here around two weeks and basically during that process they're gonna take data from your phone including things such as speeding accelerating it can even tell how hard you're braking or how hard you're going around corners as well as phone use and through that process at the end of the two weeks it's gonna give you your quote for your monthly payment that you would make if you did choose to sign up for the service this is a very recent idea that they're trying out as you can see and the growth has been exponential in just the first couple of months getting into the more financial part of this company you can see that everything is headed in the right direction with their loss ratio dropping almost 50 percent in the last four years in their contribution margin going up almost 40 percent in the last four years when compared to bigger companies such as lemonade root or even the average across the entire country you can see that almost all of their numbers are better if we go ahead and look at a stock like lemonade we can see that the price is up around 70 dollars and when we compare this to a price of just around 15 for metro mile you can see why i think this company has a great chance for growth speaking of growth you can see that this company plans to do nothing but expand starting from now they plan to expand into the nationwide market and i'll go over that in just a minute in terms of the states that they're in now versus the states that they plan to be in soon but following that they plan to grow their revenue in other places going all the way up to something such as homeowners renters pet warranties and maintenance insurance so they don't just plan to stay in the vehicle industry that they're in currently in terms of their current scope of the united states you can see that they're only in eight states right now so this is a very young company but in just one year they plan to get into 21 states and in two years they plan to be up into 49 states this is all states but michigan i'm honestly not sure why but i'm sure michigan will come around eventually this is a very clever idea and it was created by a very clever leadership team with the chief executive officer having graduated from both harvard and stanford and the founder and executive chairman being a former google employee not to mention countless other individuals having previous experience in the insurance industry which i'm sure will help them as time goes on particularly these two will give them a step up on the competition having previously worked for progressive which is one of the biggest competitors for this company so i think this gives them the opportunity to understand how to directly compete with progressive this company is backed by two very highly respected and appreciated investors in the form of mark cuban and chameth i won't even try to say his last name but the point is that these two individuals really believe in this company and chamath even compared metro mile to buffett's geico you can see here he said buffett had geico but he picks metra mile as many of you probably know buffett made a heck of a lot of money on geico and so if chamath is going in on metro mile like this that gives me the confidence to want to invest in the company as well well that'll do it for today's video once again a happy thanksgiving to all of you and we're especially thankful for you guys this year and if you did go on to enjoy the video make sure you leave a like down below and subscribe and leave any comments you might have but other than that i'll see you in the next one
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