A report from the Brookings Institution estimates that two-thirds of households in the United States would save an average of $270 per year on their auto insurance if they switched to Pay As You Drive insurance. Pay As You Drive insurance premiums are based on the number of miles a person drives. Therefore, there is an incentive to drive less because the fewer miles you drive, the cheaper your insurance premiums will be.
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.
In addition, low mileage drivers tend to subsidize high mileage drivers under a traditional insurance program, in which drivers pay the same amount of money for insurance premiums whether they drive a few hundred miles or a few thousand miles. This subsidy is removed under a Pay As You Drive insurance program. Higher mileage drivers would pay more for their insurance under a Pay As You Drive insurance system, which makes this system a more fair and equitable way to charge for insurance premiums.
However, low mileage drivers are not necessarily low income drivers. Many low mileage drivers spend less time in their vehicles because it is more cost effective and better for the environment. Fewer vehicles on the highways mean a reduction in auto emissions, as well as less traffic congestion. Drivers interested in protecting the environment would also benefit from a Pay As You Drive insurance program.
Is there anyone else who could benefit from Pay As You Drive? Drivers looking to cut their insurance outlays in tough economic times should also look at these plans. Computing premiums on the basis of miles driven gives a tangible incentive for driving less. And don't forget, the less you drive, the less often you have to replace your vehicles. Cars tend to last longer if their drivers use them 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.
In addition, low mileage drivers tend to subsidize high mileage drivers under a traditional insurance program, in which drivers pay the same amount of money for insurance premiums whether they drive a few hundred miles or a few thousand miles. This subsidy is removed under a Pay As You Drive insurance program. Higher mileage drivers would pay more for their insurance under a Pay As You Drive insurance system, which makes this system a more fair and equitable way to charge for insurance premiums.
However, low mileage drivers are not necessarily low income drivers. Many low mileage drivers spend less time in their vehicles because it is more cost effective and better for the environment. Fewer vehicles on the highways mean a reduction in auto emissions, as well as less traffic congestion. Drivers interested in protecting the environment would also benefit from a Pay As You Drive insurance program.
Is there anyone else who could benefit from Pay As You Drive? Drivers looking to cut their insurance outlays in tough economic times should also look at these plans. Computing premiums on the basis of miles driven gives a tangible incentive for driving less. And don't forget, the less you drive, the less often you have to replace your vehicles. Cars tend to last longer if their drivers use them 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.
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