The Advantages Of Pay As You Drive Insurance

May 9, 2017 · Posted in General Articles on Car Insurance 

Insurance premiums are usually based on factors such as a driver’s gender, age and where they live. But Pay As You Drive insurance is different because it is based on the number of miles you drive. The less you drive, the less you pay.

The obvious advantage of Pay As You Drive coverage is its lower cost. Since the premiums you pay are calculated on the basis of how many miles you drive, reducing your monthly insurance payment is a snap. Just drive fewer miles. Not only will you pay less for your policy, you will pay less for fuel and maintenance. The fewer miles you drive, the less wear and tear, and the greater likelihood you will be able to keep your car long after you make the last payment. And with the cost of new and used vehicles going up all the time, having a car without a payment is a major incentive.

Another advantage to Pay As You Drive insurance is you can specifically tailor your insurance program to meet your driving needs. Premiums under Pay As You Drive insurance are determined either within a specific range of miles, by the total number of miles driven or by the number of hours driven. A driver can elect to have a Pay As You Drive insurance program that focuses on a specific time period, such as six months, or the driver can simply choose to focus on the total number of miles driven. Pay As You Drive insurance gives drivers plenty of freedom and flexibility when it comes to designing an insurance program that works for them.

Pay As You Drive insurance offers an incentive to drive fewer miles, and the less you drive, the less likely you are to get into an accident. Low mileage drivers tend to be more cautious and focused behind the wheel as well.

Mileage monitoring is required with Pay As You Drive insurance, but there are plenty of options for drivers. You can have certified odometer readings, much like you do when you have your vehicle’s safety inspection. Or you can have a GPS based monitor installed in your vehicle, or you can simply have the computer data uploaded from your vehicle. Since only periodic mileage readings are needed to track the mileage for Pay As You Drive insurance, the cost associated with mileage monitoring will most likely be offset by the money you save in insurance premiums.

The Brookings Institution reported that two in three US households would save with Pay As You Drive, an average of $270 a year. In the current economic downturn, that is terrific news.

Moreover, not only does Pay As You Drive save you money, it protects the environment. Fewer vehicles on the streets and highways means a reduction in greenhouse gas emissions. Less traffic also means fewer traffic jams and less congestion, and less time wasted sitting in the car.

There are plenty of advantages for Pay As You Drive insurance. Contact a qualified insurance provider for more detailed information on an insurance plan that best suits your driving needs.

Tom Martens is the content syndication coordinator for South Arica?s leading car insurance portal.

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