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Pay as You Drive Car Insurance

Pay as you drive car insurance is a great option for drivers who do not put a lot of miles on their vehicles. It is not something that is available in every state, but as time goes by more states are approving this as an option for car insurance companies to offer to their policyholders. If you are interested in learning more about this coverage and payment option, first find out whether insurers in your state offer it, and then learn about policies and pricing for pay as you go coverage.

Pay by the Mile Coverage

Pay as you go is basically a plan that charges by the mile rather than by the month or year. It operates on the assumption that drivers who put fewer miles on their cars should pay less, because they are going to encounter fewer risks and will tend to file fewer claims. It is a sensible concept and actually one that can end up rewarding drivers and insurers both. The insurance company gets to recruit a special class of low risk drivers to its rolls, and the driver gets to find a plan that finally truly acknowledges how little he or she actually drives.

There are plans from different insurers in this area of the field that offer coverages in increments of as little as 1000 miles at a time, which makes it easy to coordinate insurance with monitoring maintenance costs as well.. The increment sizes and the methods that drivers have to use to report or verify mileage vary by the company. These are all details that drivers interested in pay as you go plans should take a closer look at before making the decision to enroll. Saving money on car insurance is obviously a goal that we all share, and for low mileage drivers this may be a better way to achieve that goal. At any rate, it is definitely something worth looking into.

Comparing Car Insurance Plans

Smart consumers will take a look at the mileage they drive and calculate what a pay as you go policy would roughly cost them over the course of a year. This number will be way different for someone that puts 25,000 miles on their car every year than it will be for someone that only drivers 5,000. The number of miles you drive and the cost of the policy per mile will give you your annual cost. Compare this with the best price you can get on a traditional plan and see where the best savings are to be found.

As many people know, there are low miles discounts available for drivers in most traditional plans as well; these discounts usually apply to drivers staying under a certain threshold like 10,000 miles per year or some such figure. About the only trouble with taking on a plan like that exists if you exceed the set numbers and then have to file a claim. The insurance company can and probably will deny the claim in this circumstance.

And this, of course, is also a trouble with pay as you drive car insurance plans. If you exceed your set mileage and have not renewed and you get into an accident, for example, you could be in some trouble. Pay as you go is a nice idea to look into, but it comes with some of the limitations and issues that we have to work through in any other auto policies as drivers and policyholders. If you are interested in this or any other affordable car insurance plan where you live, use our free form to contact several top insurers and find your best savings options.

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