A report from the Brookings Institution estimates that two-thirds of households in the United States would save an average of $270 per year on their auto insurance if they switched to Pay As You Drive insurance. Pay As You Drive insurance premiums are based on the number of miles a person drives. Therefore, there is an incentive to drive less because the fewer miles you drive, the cheaper your insurance premiums will be.
Who should look closely at Pay As You Drive? Anyone could consider a Pay As You Drive plan, but the real winners are low-income and low-mileage drivers. Low-income drivers also tend to below-mileage drivers due to the high cost of operating their cars. While frugal usage of your car does not save you money on traditional car insurance, it is actually rewarded with Pay As You Drive. And as you save money on your car insurance, you also save money on gas, maintenance, wear and tear, and the cost of replacing your vehicle.
Another benefit of Pay As You Drive is fairness. Under traditional coverage, low-mileage drivers subsidize the high-mileage drivers who pay the same premiums, but, because of how much time they spend on the road, are more likely to be involved in crashes. This inequitable subsidy is removed under Pay As You Drive. Higher-mileage drivers pay higher premiums, and lower-mileage drivers pay less.
However, low mileage drivers are not necessarily low income drivers. Many low mileage drivers spend less time in their vehicles because it is more cost effective and better for the environment. Fewer vehicles on the highways mean a reduction in auto emissions, as well as less traffic congestion. Drivers interested in protecting the environment would also benefit from a Pay As You Drive insurance program.
Drivers interested in saving money in a tight economy would also benefit from Pay As You Drive insurance. Since the insurance premium costs are based on the amount of miles driven, there is an incentive to drive fewer miles because that?s how you save money. Drivers who utilize Pay As You Drive insurance also spend less money on gas and auto maintenance due to their reduced driving. And don?t forget that the less you drive your vehicle, the longer you can keep it after you pay for it. Vehicles tend to last longer if we drive them less.
Pay As You Drive insurance can be a benefit to almost any driver. Drivers interested in learning more about how Pay As You Drive insurance can save you money, protect the environment and help your vehicle last longer should contact a qualified insurance provider. This provider can answer your questions and help tailor a specific Pay As You Drive insurance program to help meet your driving and insurance needs. Remember, the average U.S. household can save $270 a year on insurance premiums just by switching to Pay As You Drive insurance.
Who should look closely at Pay As You Drive? Anyone could consider a Pay As You Drive plan, but the real winners are low-income and low-mileage drivers. Low-income drivers also tend to below-mileage drivers due to the high cost of operating their cars. While frugal usage of your car does not save you money on traditional car insurance, it is actually rewarded with Pay As You Drive. And as you save money on your car insurance, you also save money on gas, maintenance, wear and tear, and the cost of replacing your vehicle.
Another benefit of Pay As You Drive is fairness. Under traditional coverage, low-mileage drivers subsidize the high-mileage drivers who pay the same premiums, but, because of how much time they spend on the road, are more likely to be involved in crashes. This inequitable subsidy is removed under Pay As You Drive. Higher-mileage drivers pay higher premiums, and lower-mileage drivers pay less.
However, low mileage drivers are not necessarily low income drivers. Many low mileage drivers spend less time in their vehicles because it is more cost effective and better for the environment. Fewer vehicles on the highways mean a reduction in auto emissions, as well as less traffic congestion. Drivers interested in protecting the environment would also benefit from a Pay As You Drive insurance program.
Drivers interested in saving money in a tight economy would also benefit from Pay As You Drive insurance. Since the insurance premium costs are based on the amount of miles driven, there is an incentive to drive fewer miles because that?s how you save money. Drivers who utilize Pay As You Drive insurance also spend less money on gas and auto maintenance due to their reduced driving. And don?t forget that the less you drive your vehicle, the longer you can keep it after you pay for it. Vehicles tend to last longer if we drive them less.
Pay As You Drive insurance can be a benefit to almost any driver. Drivers interested in learning more about how Pay As You Drive insurance can save you money, protect the environment and help your vehicle last longer should contact a qualified insurance provider. This provider can answer your questions and help tailor a specific Pay As You Drive insurance program to help meet your driving and insurance needs. Remember, the average U.S. household can save $270 a year on insurance premiums just by switching to Pay As You Drive insurance.
About the Author:
Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.
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