You have probably heard about pay-per-mile insurance policies and how great they are. Recently, many people have switched to this type of customizable plan. But what exactly is and how can you use pay-per-mile coverage to save money? Find out more in this blog post. Also, get free car insurance quotes, from our website!
You’re used to the traditional insurance model, but there’s a new option out there that’s worth a look. It is called pay-per-mile and relies heavily on modern technology. Pay per mile automobile insurance works by adjusting your monthly rate depending on the number of miles that your drive in an average month. This means that for those who drive considerably less miles than the average driver, about 450 miles or less per month, your rates will be significantly improved.
There are several similar usage based policies, but they do not work exactly as pay-per-mile. They use data provided by a monitoring device in order to rate the driver. But the data analyzed also includes speed, driving hours, how fast you brake and so on. Pay per mile uses only the mileage provided by odometer readings. Companies consider that spending less time exposed to accidents will suffice.
Those who will benefit the most from pay-to-drive or pay-per-mile are those who drive less than the national average of 12,000 miles per year. A pay per mile service can save you a lot of money. A driver with a clean record, can get full coverage car insurance for less than $1,000 with a low monthly mileage count. With the other programs, you really need to drive less than 7,500 miles to see any noticeable change in your rates. So, pay-per-mile programs are more cost effective when compared to low mileage discounts provided by insurance companies.
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