People that drive will do anything to try and save money as the cost of driving goes up and down. Some have opted for public transportation, even more have joined carpools. Despite the fact that these are big ways to chip away at the price of gas, in no way does it solve the problem as a whole.
While these options might save on fuel consumption, there are still other costs associated with driving and owning a car, such as insurance. Essentially, auto insurance indicates a monthly bill, regardless of the time that is spent on driving.
New insurance plans are being brought to the forefront now and are indeed welcome. A few states are trying a new insurance arrangement known as pay per mile auto insurance.
The cost of this insurance is calculated against the number of miles that are driven. A plan such as this would stand to benefit drivers and insurance companies alike. For drivers that don't use their vehicles as much, there is no need for them to pay for full coverage auto insurance.
Pay per mile auto insurance will help people by allowing them to have more say over their coverage and the price that they pay. For people who don't use their cars as much, price reductions make perfect sense. The benefits are great for all involved.
How would the number of miles that a driver travels be calculated? How can they make sure that there is no way to alter the system?
Although nothing is official, one possibility includes the installation of an odometer that is linked to the insurance company and sending all information about the amount of travel that you do or perhaps even using something like a GPS unit.
Since this is a pay per mile engagement, the less that a person drives the less their payments would be. Drivers that can keep their travel miles at under 15,000 would stand to see the biggest savings.
This is a wonderful arrangement for people that are using public transport or that have reduced the number of miles that they drive. However, this is currently only available for persons in Arizona, Indiana, Illinois and Pennsylvania.
While these options might save on fuel consumption, there are still other costs associated with driving and owning a car, such as insurance. Essentially, auto insurance indicates a monthly bill, regardless of the time that is spent on driving.
New insurance plans are being brought to the forefront now and are indeed welcome. A few states are trying a new insurance arrangement known as pay per mile auto insurance.
The cost of this insurance is calculated against the number of miles that are driven. A plan such as this would stand to benefit drivers and insurance companies alike. For drivers that don't use their vehicles as much, there is no need for them to pay for full coverage auto insurance.
Pay per mile auto insurance will help people by allowing them to have more say over their coverage and the price that they pay. For people who don't use their cars as much, price reductions make perfect sense. The benefits are great for all involved.
How would the number of miles that a driver travels be calculated? How can they make sure that there is no way to alter the system?
Although nothing is official, one possibility includes the installation of an odometer that is linked to the insurance company and sending all information about the amount of travel that you do or perhaps even using something like a GPS unit.
Since this is a pay per mile engagement, the less that a person drives the less their payments would be. Drivers that can keep their travel miles at under 15,000 would stand to see the biggest savings.
This is a wonderful arrangement for people that are using public transport or that have reduced the number of miles that they drive. However, this is currently only available for persons in Arizona, Indiana, Illinois and Pennsylvania.
About the Author:
For more tips go to Low Cost Auto Insurance and Discount Auto Insurance. Chimezirim Odimba writes on insurance.
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