Should You Consider Pay As You Drive?
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.
In addition, low mileage drivers tend to subsidize high mileage drivers under a traditional insurance program, in which drivers pay the same amount of money for insurance premiums whether they drive a few hundred miles or a few thousand miles. This subsidy is removed under a Pay As You Drive insurance program. Higher mileage drivers would pay more for their insurance under a Pay As You Drive insurance system, which makes this system a more fair and equitable way to charge for insurance premiums.
Of course, not all low-mileage drivers are low-income drivers. Many people don’t drive just because they care about the environment. The fewer miles people drive, the less automobiles contribute to greenhouse gases, and the less congestion there is on the road. Any driver interested in protecting the ecology should also consider Pay As You Drive.
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.
Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.
mitchee,? all that negativity will manifest itself into full blown cancer. Take a deep breath and smell the flowers and enjoy the day.
autoinsurance.noneto.com – check this one. As I remember they have lowest car insurance rates for teens and young drivers.
You only need to report the accident to YOUR insurance company. Let them deal with tracking down his.