The Advantages Of Pay As You Drive 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.
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.
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.
Another factor in the low cost of Pay As You Drive is the fewer miles driven, the lower the risk of a crash. Low-mileage drivers are typically more focused and careful behind the wheel, and the lower premiums for Pay As You Drive incentive this quality.
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.
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.
A close look finds many advantages to Pay As You Drive plans. Contact an authorized insurance broker for more details on a plan that best suits your individual needs.
Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.
