Do you have a difficult time figuring out what car insurance companies have the best deals? Here’s a new piece of insight. If at the end of the year, your insurer sees that you haven’t driven very much over the course of the year, they will reduce the cost of your insurance and get a rate cut.
As a matter of fact this has been an insurer mainstay for a long time – the low mileage bonus that they can arrive at either by inquiring of you how much you have driven from day to day, or primarily by looking at how long you’ve had the car and how much you’ve driven. Another method of calculation is more accurate and delivers more to you. What the insurance companies are planning is that they’re going to calculate your premium completely on a per-mile basis.
A usage based car insurance policy is more forgiving if you drive less. And in some places, it goes by the name of PAYD (pay as you drive). What they do is, they turn your car into some kind of a taxicab; they put in a discreetly-mounted meter on your car that will keep track of exactly how many miles you drive in a year.
Companies like Texas’ Progressive for instance, have been offering Texans a car insurance policy based on the meter called MyRate, for more than ten years now. Since the trial worked they plan is to offer this method of insurance throughout the country over this year. Actually, a clutch of states around the South like Alabama, Georgia and Louisiana, and several up North like Michigan, Maryland Oregon already have this option.
When you sign up for a PAYD car insurance policy, the agency sends an installer to place the wireless device on your vehicle. Usually, it finds its home on the underside of the steering column on your car, and it collects more than just how many miles you drive. Pretty often, it records information about your driving style, and how often you use your car. The device uses a wireless connection to the company – where they put your driving information together with other traditional factors that affect your insurance, what your age is, your sex and your driving record, to set up a custom car insurance policy just for you. If you’re someone who doesn’t drive much at all, you could actually shave half off your traditional insurance premium. Get better rates by comparing car insurance premiums today.
If they find out that you constantly drive near the top of the speed limit, and you drive a lot in the middle of the night when they know that the statistics say most accidents occur, you’ll pay more – about 10% more. One imagines that the wireless connection will also tell them what parts you’re driving in, so that they can tell if your chosen area is high risk or low risk. It will even know if you are in a hurry one morning, and really stepped on the gas for about 5 seconds to quickly get to 40 mph in just 3 seconds – and man, will you pay. Find the lowest auto insurance rates and compare: buy auto insurance online today.
You’ll soon discover that many auto insurance policy majors are testing out a version of the PAYD scheme now with volunteers and their own unique hardware – Allstate, State Farm, The Hartford – the entire shooting match. This will function to aid people to keep an eye on the way they drive, and cut out wasteful miles. And parents can get a clue as to what their kids driving habits are like, as well.
Related posts:
- 3 Must Do Teenage Driver Auto Insurance Discounts
- Conditions For Getting Reduced Monthly Rates On Alberta Auto Insurance Policies
- How To Buy Car Insurance In Your State
- Find California Car Insurance Quotes by these simple ways
- How Can I Find Cheap Auto Insurance?
- Options for Cheap Car Insurance for Younger Drivers
- Low Cost Auto Insurance: Antique Car Insurance