Very Cheap Auto Insurance -Tips That Guarantee Affordable Car Insurance Rates (Video)

Friday, April 24, 2009

The Advantages of Pay As You Drive Insurance

By Tom Martens

The premiums you pay on your auto insurance are usually based on your age, gender, and where you live. Pay As You Drive insurance however is different. It's based on the number of miles you drive. Drive fewer miles, pay lower premiums.

The obvious advantage of Pay As You Drive coverage is its lower cost. Since the premiums you pay are calculated on the basis of how many miles you drive, reducing your monthly insurance payment is a snap. Just drive fewer miles. Not only will you pay less for your policy, you will pay less for fuel and maintenance. The fewer miles you drive, the less wear and tear, and the greater likelihood you will be able to keep your car long after you make the last payment. And with the cost of new and used vehicles going up all the time, having a car without a payment is a major incentive.

Another benefit of Pay As You Drive coverage is that it is possible to customize the insurance program to personal needs. Premiums are determined either within a range of miles driven, or hours driven. The owner may elect to a Pay As You Drive plan that focuses on a specific time period, such as six months, or just the total number of miles driven. Freedom and flexibility in Pay As You Drive allows drives to design the insurance coverage that works best for them.

Because Pay As You Drive incentivizes driving less, it makes it less likely you will get yourself into an accident. Low-mileage drivers are usually more focused and careful behind the wheel, too.

Pay As You Drive plans require mileage monitoring, but there are several options. You can opt for certified odometer readings, the same kind as performed when you have a safety inspection. Or you can have a GPS monitor installed into your car, which allows the computer simply to upload data to the insurer. If you choose to use GPS, the initial cost of the monitor will probably be offset by the reduction in your premiums, making future coverage less expensive and hassle-free.

The Brookings Institute found that two-thirds of American households would save an average of $270 per year with Pay As You Drive. In the current economic situation, that is welcome news.

And not only does Pay As You Go save you money, it helps you save the environment. Fewer miles driven means fewer vehicles on the road. Fewer vehicles on the road means fewer greenhouse gas emissions, not mention less congestion, fewer traffic jams, and less time wasted sitting in traffic.

There are many advantages to Pay As You Drive. See or call your insurance agent to get more detailed information about a Pay As You Drive policy that meets all your insurance needs.

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