Advantages Pay as You Drive Insurance
The premiums you pay on your auto insurance are usually based on your age, gender, and where you live. Pay As You Drive insurance however is different. It's based on the number of miles you drive. Drive fewer miles, pay lower premiums.
The obvious advantage of Pay As You Drive, then, is cost. Since Pay As You Drive premiums are computed on the basis of how many miles the vehicle is driven, it is extremely easy to reduce the monthly insurance bill. Simply reduce the number of miles driven. Not only does this save money on the insurance bill, it also means less on gas and maintenance and repair. The fewer miles driven, the longer the vehicle lasts. It may be possible to keep the vehicle long after that last car payment is made?and in our tough economy, who can't find things to do with the money that otherwise would be spent on a car payment?
Another benefit of Pay As You Drive coverage is that it is possible to customize the insurance program to personal needs. Premiums are determined either within a range of miles driven, or hours driven. The owner may elect to a Pay As You Drive plan that focuses on a specific time period, such as six months, or just the total number of miles driven. Freedom and flexibility in Pay As You Drive allows drives to design the insurance coverage that works best for them.
Because Pay As You Drive incentivizes driving less, it makes it less likely you will get yourself into an accident. Low-mileage drivers are usually more focused and careful behind the wheel, too.
Pay As You Drive plans require mileage monitoring, but there are multiple options. It is possible to have odometer readings, just as one would at the annual safety inspection. It is also possible to have a GPS-based monitor installed in the vehicle, which allows for data uploading. And since only periodic mileage readings as needed to compute the cost of Pay As You Drive coverage, the cost of monitoring will most likely be offset by the money saved in insurance premiums.
A report from the Brookings Institution found that two-thirds of U.S. households would save an average of $270 a year with Pay As You Drive insurance. In the current tight economy, that is great news.
And not only does Pay As You Go save you money, it helps you save the environment. Fewer miles driven means fewer vehicles on the road. Fewer vehicles on the road means fewer greenhouse gas emissions, not mention less congestion, fewer traffic jams, and less time wasted sitting in traffic.
There are many advantages to Pay As You Drive. See or call your insurance agent to get more detailed information about a Pay As You Drive policy that meets all your insurance needs.
The obvious advantage of Pay As You Drive, then, is cost. Since Pay As You Drive premiums are computed on the basis of how many miles the vehicle is driven, it is extremely easy to reduce the monthly insurance bill. Simply reduce the number of miles driven. Not only does this save money on the insurance bill, it also means less on gas and maintenance and repair. The fewer miles driven, the longer the vehicle lasts. It may be possible to keep the vehicle long after that last car payment is made?and in our tough economy, who can't find things to do with the money that otherwise would be spent on a car payment?
Another benefit of Pay As You Drive coverage is that it is possible to customize the insurance program to personal needs. Premiums are determined either within a range of miles driven, or hours driven. The owner may elect to a Pay As You Drive plan that focuses on a specific time period, such as six months, or just the total number of miles driven. Freedom and flexibility in Pay As You Drive allows drives to design the insurance coverage that works best for them.
Because Pay As You Drive incentivizes driving less, it makes it less likely you will get yourself into an accident. Low-mileage drivers are usually more focused and careful behind the wheel, too.
Pay As You Drive plans require mileage monitoring, but there are multiple options. It is possible to have odometer readings, just as one would at the annual safety inspection. It is also possible to have a GPS-based monitor installed in the vehicle, which allows for data uploading. And since only periodic mileage readings as needed to compute the cost of Pay As You Drive coverage, the cost of monitoring will most likely be offset by the money saved in insurance premiums.
A report from the Brookings Institution found that two-thirds of U.S. households would save an average of $270 a year with Pay As You Drive insurance. In the current tight economy, that is great news.
And not only does Pay As You Go save you money, it helps you save the environment. Fewer miles driven means fewer vehicles on the road. Fewer vehicles on the road means fewer greenhouse gas emissions, not mention less congestion, fewer traffic jams, and less time wasted sitting in traffic.
There are many advantages to Pay As You Drive. See or call your insurance agent to get more detailed information about a Pay As You Drive policy that meets all your insurance needs.
About the Author:
Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.
posted by Credit Counseling at
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