New Concepts in Car Insurance - Pay as You Drive

You can pay as you speak with a cell phone plan, so why not pay as you drive auto insurance? It sounds like a good idea; but would wage as you drive auto insurance work for you?

The thought behind pay as you drive auto insurance is simple. Basically its this- if you make not drive very much, you will not pay high insurance premiums. Advocates for this type of insurance policy believe that there are many virtues to this type of program. Less air pollution, lower gas consumption, and lower costs to the consumer among them.

What if you car pool to work, or take public transit? You are not using your car very much so why are you paying high premiums. With a wage as you drive auto insurance insurance premiums you would be able to quite literally pay as you go. Another state of affairs where this program would be of benefit is that of many people who have got wintertime homes in temperate climates, the 'snowbirds' life in Florida or Grand Canyon State six calendar calendar months of the twelvemonth and six months in New House Of York or Toronto for example.

Essentially the insurance companies would put an average drive amount for each car type. It could then be broken down into a cents per mile basis. If you wanted to us the wage as you drive auto insurance system you could purchase a set number of miles and you would be covered for insurance during this period.

Pay as you drive auto insurance is an first-class thought for those people who make not utilize their car very much or seek to happen cost economy methods or environment economy alternatives. Currently this type of programme is not yet available, but there are protagonists in many states who are hoping to change that soon.

Groups including Environmental Defense, the Conservation Law Foundation and even the U.S. Environmental Protection Agency are working to form a national co-op that would work with insurance companies to offer deep price reductions for low-mileage drivers; halfway a measure toward PAYD (Pay As You Drive) insurance.

General Motors and On-Star Offers PAYD Rates. In mid-2004 General Motors Acceptance Corporation (GMAC) Insurance began offering mileage-based price reductions to OnStar endorsers located in some states. The OnStar system reports a vehicle's hodometer readings at the beginning and end of the policy term to verify mileage. Motorist who drive less than specified annual mileage can have insurance insurance premium price reductions of up to 40%.

PAYD programs are also currently available in Israel, South Africa and Holland. PAYD is gaining momentum, and will be coming to your country soon.