Is pay-per-mile auto insurance for me?
According to state law, we are required to hold auto insurance as licensed drivers. With gas prices higher than they have ever been before, many people are looking towards other means of transportation to cut down on their costs, such as taking a bus, train, riding your bike, or even walking. However, many people don’t want to give up the convenience of having a car.
When getting a new auto insurance quote, you may be able to save a little bit of money since you aren’t on the road as much, but you honestly won’t save all that much. Paying for full blown car insurance coverage just doesn’t make sense for these people that don’t drive nearly as much as they once did. But since it is required by law, cutting out auto insurance completely from your budget is not an option. This led the auto insurance companies to come up with a new way to offer coverage for those that want to keep their cars handy for special occasions.
What they came up with was a pay-per-mile or pay-as-you-drive plan that largely charges you only for how much you drive. This form of auto insurance is definitely in its infancy, but is already showing great promise. Some people are already saving 25%-40% on their auto insurance premiums. This is perfect for those that care about the environment. Eco-friendly drivers can now drive less, and save even more money than they already are buy cutting down on gas consumption. Share this article with your friends, this added incentive may be able to convince them to cut down on how much they drive.
However, if you have no other choice but to commute to work or school via car, these pay-per-mile plans probably aren’t for you. Unless you are keeping your driving to a minimum, often times you will end up paying more. However, there is only one way to find out, and that is by getting a car insurance quote. There you will be able to compare the rates of pay-per-mile and standard policies to see if they will actually save you money in the long run. Keep in mind, not all states have adopted pay as you drive auto insurance just yet. As these program grow in popularity, more auto insurance companies are likely to adapt them to other states.