The Disadvantages of Pay as You Drive Insurance
First, in order to use Pay As You Drive, you must consent to have your mileage monitored. Monitoring your mileage is not cost-free, and those costs are paid by the insured, not the insurance company. Especially for GPS monitoring, those costs can outweigh any savings gained by using Pay As You Drive. In addition, drivers have to get a new monitoring device any time they change insurance companies. That reality can make you think twice about changing companies just to get a lower rate.
Second, the companies that make the odometer tracking devices often charge a monthly fee for transmitting the data. So, not only do drivers have to pay for the odometer tracking device to participate in a Pay As You Drive insurance program, but they will also have to pay additional fees. Again, this could possibly strip away any savings benefits gained from Pay As You Drive insurance.
Additionally, insurance companies would have to develop an entirely new payment structure in order to offer Pay As You Drive insurance to their customers. The insurance companies could then easily pass any costs associated with this new payment structure directly onto drivers, again removing any financial benefit gained from Pay As You Drive insurance.
There are also concerns about how odometer data may be used. While it may be true that the monitoring devices will only provide the data needed to compute premiums, there is always the possibility that the monitors could be modified to tell the company not just how far you drive, but where, when, and how often. This information about where you could go could then be used to raise your rates, or for some other purpose entirely.
Those who favor Pay As You Drive insurance claim that less driving will result in fewer vehicle accidents. However, the relationship between vehicle miles traveled and accidents isn?t entirely proportional. Also, low mileage drivers are not necessarily safer, better drivers. A driver on a Pay As You Drive insurance program can just as easily have an accident as a driver who is on a more traditional insurance program.
On the surface, the cost savings of Pay As You Drive seem quite attractive. Drivers who are considering Pay As You Drive, however, should ask detailed questions before signing up for the plan. Gather as much information as you can to determine whether Pay As You Go is really right for you.
Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.
CAR INSURANCE BROKER NEW JERSEY: Click Here to Get An Online Car Insurance Quote in Seconds…
There is no "standard" holiday insurance. Most of the time, when they show life cover, it's ACCIDENTAL. Murder isn't accidental.
I'm sorry. I did not read all of it, because I don't have the patience to read long stuff! But, I did read you details(XD). I think that's awesome that you're a cop!! My uncle is one in FL too. I was thinking about joining the Police force if my military career doesn't happen. Thank you!
and God Bless!
Insurance is coverage for a CAR, regardless of who is driving unless specifically excluded from the policy. Liability is required in order to cover damages and /or injuries you (or your car) may do to someone else. Your parents can add you to their insurance but it will be a specific policy written for your car and cost of coverage will be determined by your age, type of vehicle, etc. PS — get three jobs.
Ways Of Getting Providers Accept Low Vehicle Insurance Premiums: Many buying habits would manifest as a conseque…