Pay You Go Auto Insurance

Pay As You Go Auto Insurance gives you accurate mileage for the miles driven for a certain period. Pay-as-you-go car insurance plans can save low-mileage drivers hundreds of dollars annually. In the past, motorists who drove very little would get a small discount but still pay much more proportionately than drivers who drove a lot.  

Every day, we hear of a new way technology is changing the world around us, supposedly making our lives more efficient and productive. The digital age has spawned countless inventions, which is no different in the insurance market. 

For decades, many drivers who drove very little or not at all had to pay their full premiums and, if they were lucky, would get a small discount for being considered a lower mileage driver.

Insurers have Made Big Profits on Low-Mileage Drivers. 

Large insurers ended up with big profits year after year. This is primarily due to safe motorists who didn’t drive much. Car insurance carriers marketed to these consumers with an endless barrage of television and online commercials claiming to save them time and money. 

Did anyone ever think about the costs of those advertisements? Well, those costs get added to your insurance bill. Let’s look at real ways to save on pay-as-you-go auto insurance with an idea, although it is starting to catch on while not very popular today.

The idea behind pay-as-you-drive auto insurance is to allow the driver to only pay-for-miles-driven. This option seems fair enough, and if you don’t drive too much, it could be a smart choice for those on a budget. 

Advancements in Technology have Allowed Driver’s Mileage to be Tracked. 

Thanks to technological advances, auto insurers can track the miles you drive and the speed. This type of automobile tracking is often called telematics, which utilizes technology to gather information about your vehicle while in motion.

In short, the safer of a driver you are and the fewer miles you drive each month, the more you can save.

For example, you live only 5 miles from work and don’t drive much on weekends. Your total miles go each month are around 500, and you rarely drive aggressively or over the speed limit. In this scenario, you could save $600 or more yearly on full coverage. To compare pay-as-you-go car insurance plans, and get car insurance under $100 a month, enter your zip code to get started.  

What Exactly Does the Device Monitor?

Three primary indicators are monitored on your vehicle:

1. How many miles do you drive in a given period, most often monthly?
2. How fast you drive your vehicle. For example, if you ever go past 80 mph, this will be deemed reckless and could cause your insurance rates to go up significantly.
3. How fast you break. If you are breaking extremely hard all the time, this is considered reckless, so watch those sudden stops and drive cautiously.

Why are the Devices Becoming More Accepted?

In recent years, the idea of installing a monitoring device on a person’s vehicle has increased.  This technology is no longer considered an intrusion into one’s privacy as it was when it first came out. In a recent survey by a consumer reporting agency, about one in three drivers were aware of usage-based devices and have thought about having one installed. 

Recent projections have claimed by the end of 2014, about 6 million USA cars will have a usage-based device installed in their vehicles. Why are the devices becoming more accepted? The answer is simple; they save drivers and insurance companies serious money.

One group of consumers that have welcomed the idea of vehicle monitoring devices is parents with teenage drivers.

For worried parents, having a device that monitors their teens driving behavior, such as speed, almost seems like a device sent from heaven. With teens texting while driving and checking their iPads and other electronic devices behind the wheel, every parent should strongly consider installing a telematics device. These devices change driving behavior and could save your teen’s life. Teen insurance rates have steadily climbed in recent years, so getting an excellent 2go insurance policy is a good idea for auto insurance.

Is a Usage-based policy right for pay-as-you-go auto insurance?

First, ask yourself if you feel okay with recording your driving with a monitoring device. If the answer is yes, you need to be honest with yourself and assess whether or not you are a safe driver and do not speed. 

If you feel comfortable with having the technology monitoring your car and are a safe driver at all times, then you are good to go. A usage-based policy can save up to 20% or more on car insurance. If you qualify for other discounts, such as military service, you could be looking at some severe insurance savings.

What Car Insurance Companies offer Pay as You Go Auto Insurance?

In general, large insurance companies have these programs. These insurers include most of the top 10, such as Allstate, Esurance, Safeco, and GMAC. Progressive Insurance company has actively promoted pay-as-you-go auto insurance on TV and online. Progressive insurance claims very affordable good-to-go insurance rates. If you are considering this type of policy, you should get a quote from all the insurance companies and compare rates. 

It is important to note that this type of specialized insurance may not be available in your state, although carried by the insurance company. This is because each state has a set of insurance regulations and may prohibit usage-based insurance or has not yet approved this type of policy. If you seek a good-to-go insurance policy, check online and get quotes with the same coverage options.

Pay You Go Car Insurance Rates

How much money can a person expect to save for having one of these devices hooked to their car? How much can a person save by losing just a bit of privacy? The answer varies from company to company but can be as high as 40% based on the most recent policy data. If you paid $2,000 for your auto insurance coverage last year, that could mean saving as much as $800 per year. What must you lose except your high-cost insurance bill if you are a safe, responsible driver?

Your savings could be even more if you check for all the insurance discounts you qualify for GoodToGoInsurance.

Available Auto Insurance Discounts

Insurance carriers have multiple discounts available, and you should be aware of all of them. Some of the popular ones include:

• Safe Driver
• Low Mileage
• Good Student (GPA of 3.0 or higher) 
• Teacher
• Military and Veteran discounts
• Senior Citizen 
• Bundling Home and Auto Insurance
• Multi-Vehicle Discounts 

The best way to save with pay-as-you-go auto insurance is to compare multiple quotes online. The best deals on car insurance are almost always found online. Get started and comparison shop at least five quotes from several carriers that offer pay-as-you-drive auto insurance plans. 

You can get a quote from the comfort of your home in about four or five minutes. You can even use your smartphone to check rates. Let the insurance companies fight for your business and compare the best pay-as-you-go auto insurance plans. The quote is free, so what are you waiting for?

Is Pay-As-You-Go Insurance a Good Fit for You?

Pay-As-You-Go insurance could be a smart way to save if you don’t drive much or just want a policy that truly reflects how you use your car. Instead of paying a flat rate, your costs are based on how much you actually drive—meaning you’re not overpaying for coverage you don’t need.

Looking to cut down on insurance costs without losing essential protection? This type of policy might be the perfect fit. Take a look at your options and find a provider that works best for your driving habits and budget. Compare quotes now and select the best option for you.