The Brookings Institution tells us that their studies find that 2 out of every 3 households in the United States would save money if they switch their auto insurance to a Pay As You Drive plan. Pay As You Drive insurance is based on the numbers of miles an insured's car is driven. They give you an incentive to drive less and lower your premiums.
Anyone can consider switching to a Pay As You Drive insurance program, but these programs really benefit low income and low mileage drivers. Low income drivers tend to also be low mileage drivers because of the high costs associated with frequent driving. While the amount of miles driven doesn?t impact premiums under a more traditional insurance program, high mileage driving does require spending more money on gasoline and auto maintenance and repairs. There is also more wear and tear on your vehicle, which means vehicles will need to be replaced more frequently.
Another benefit of Pay As You Drive is fairness. Under traditional coverage, low-mileage drivers subsidize the high-mileage drivers who pay the same premiums, but, because of how much time they spend on the road, are more likely to be involved in crashes. This inequitable subsidy is removed under Pay As You Drive. Higher-mileage drivers pay higher premiums, and lower-mileage drivers pay less.
Of course, not all low-mileage drivers are low-income drivers. Many people don't drive just because they care about the environment. The fewer miles people drive, the less automobiles contribute to greenhouse gases, and the less congestion there is on the road. Any driver interested in protecting the ecology should also consider Pay As You Drive.
Who else benefits from Pay As You Drive? Auto owners looking to save money in a tight economic environment should also consider these plants. Since premiums are computed on the basis of distance driven, there's a real reason to drive less?because the savings aren't limited just to gas costs. And don't forget, the fewer miles you drive each year, the more years you can drive your vehicle. Cars last longer when they are driven less.
Pay As You Drive insurance can be a benefit to almost any driver. Drivers interested in learning more about how Pay As You Drive insurance can save you money, protect the environment and help your vehicle last longer should contact a qualified insurance provider. This provider can answer your questions and help tailor a specific Pay As You Drive insurance program to help meet your driving and insurance needs. Remember, the average U.S. household can save $270 a year on insurance premiums just by switching to Pay As You Drive insurance.
Anyone can consider switching to a Pay As You Drive insurance program, but these programs really benefit low income and low mileage drivers. Low income drivers tend to also be low mileage drivers because of the high costs associated with frequent driving. While the amount of miles driven doesn?t impact premiums under a more traditional insurance program, high mileage driving does require spending more money on gasoline and auto maintenance and repairs. There is also more wear and tear on your vehicle, which means vehicles will need to be replaced more frequently.
Another benefit of Pay As You Drive is fairness. Under traditional coverage, low-mileage drivers subsidize the high-mileage drivers who pay the same premiums, but, because of how much time they spend on the road, are more likely to be involved in crashes. This inequitable subsidy is removed under Pay As You Drive. Higher-mileage drivers pay higher premiums, and lower-mileage drivers pay less.
Of course, not all low-mileage drivers are low-income drivers. Many people don't drive just because they care about the environment. The fewer miles people drive, the less automobiles contribute to greenhouse gases, and the less congestion there is on the road. Any driver interested in protecting the ecology should also consider Pay As You Drive.
Who else benefits from Pay As You Drive? Auto owners looking to save money in a tight economic environment should also consider these plants. Since premiums are computed on the basis of distance driven, there's a real reason to drive less?because the savings aren't limited just to gas costs. And don't forget, the fewer miles you drive each year, the more years you can drive your vehicle. Cars last longer when they are driven less.
Pay As You Drive insurance can be a benefit to almost any driver. Drivers interested in learning more about how Pay As You Drive insurance can save you money, protect the environment and help your vehicle last longer should contact a qualified insurance provider. This provider can answer your questions and help tailor a specific Pay As You Drive insurance program to help meet your driving and insurance needs. Remember, the average U.S. household can save $270 a year on insurance premiums just by switching to Pay As You Drive insurance.
About the Author:
Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.
