Advantages Of Pay As You Drive Insurance
Insurance companies usually price auto insurance policies on factors such as the driver’s gender, age, driving record, and place of residence. Pay As You Drive insurance, however, is very different, being based on the number of miles you drive. The fewer miles you drive, the less you pay.
One advantage of Pay As You Drive insurance is the cost. Since the premiums are linked to how much the driver uses their vehicle, it is easy to reduce costs. Simply reduce the amount of driving you do. Not only will you save money on your insurance costs, you will also save on gas and auto maintenance and repair. Less driving also means less wear and tear on your vehicle, which means you will be able to keep your vehicle long after you make that last car payment. With the cost of new and used vehicles soaring, this is a particularly attractive incentive.
The less obvious advantage of Pay As You Drive coverage is that you can tailor your program to your specific driving needs. Premiums under these plans are either computed on the basis of miles driven, or on the basis of hours driven. You can choose a Pay As You Drive policy that focuses on total miles, or total hours in a specific time period, such as six months. Pay As You Drive coverage offers you the flexibility and freedom you need to choose exactly the coverage you need, and to get it at a lower cost as you economize.
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.
The Brookings Institute found that two-thirds of American households would save an average of $270 per year with Pay As You Drive. In the current economic situation, that is welcome news.
Not only does Pay As You Drive insurance save you money, it also helps protect the environment. Fewer vehicles on the roads mean a reduction in auto emissions. Reduced traffic also means less congestion and traffic jams, which means less time wasted 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 Carinsurancesa.co.za. South Arica?s leading car insurance portal.
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