If you don?t drive that often then pay as you drive insurance can be a good choice for you. Some people just can?t image life without a car, but for others it is just a luxury used for only holiday trips or long drives. If you travel more by bus then you?ll recognize the need for pay as you drive insurance more, as you are already paying premiums for a car you do not use that often.
This type of insurance is really more of a deduction. It is an option given to motorists, but it is only available in some states. Because your final price is only received after you relate your hours or miles driven, the actual price cannot be stated in the agreement, which makes it illegal in some areas. This complication is trying to be sorted out so everyone can have the benefits of pay as you drive insurance.
This insurance is calculated in diverse methods. You can get an examiner come and inspect the mileage of you car and decide your charges accordingly. You can also send your mileage to your insurance company through your GPS system. You can also have your GPS relate the style of driving and model if you feel that it will facilitate in further lowering your premiums. You can also record your mileage by a method of ?pay-at-pump technologies?.
Pay as you drive can be a lot cheaper, but only for drivers that don?t put on tons of miles. In fact, 2 of every 3 people can save money by using this type of insurance. The other benefit is that you can choose to have a shorter coverage period. Your college student can be covered when they come home for summer vacation instead of having to pay insurance year round. Many people see their bills discounted by about 50%, which is a big deal for a lot of drivers.
Some rural drivers are a little cautious of this type of insurance because they believe they will be charged more for having to drive more. Don't worry; the insurance companies adjust for this, seeing as most accidents occur in the city anyways. Your premiums will be set based off of the average information from your area, and discounted according to how many miles you put on.
Pay as you drive insurance is not only cheaper, but it helps out the environment as well. Since less people drive their cars, there would be fewer accidents and less carbon dioxide emissions. It?s a great way to start helping out the environment, and you don?t even have to change much of your lifestyle.
If you are skeptical of the pay as you drive insurance, try recording your mileage for a month and looking up quotes. You may have to talk to an agent to get a quote, but it is likely that you will be surprised by how much you save. If you find that you are putting on too many miles for this type of insurance to be beneficial you can just keep the insurance you have.
