Pay As You Go Auto Insurance Helps Your Finances

Many auto insurance companies have been trying for several years to find various ways to respond to the changing needs of consumers.

As gas prices continue to soar and fall all across the country, consumers are very desperately searching for ways to save money when fueling their cars. The cost of auto insurance plus the unstable cost of gasoline for our cars has quite a strangle hold on our finances. Insurance companies have responded to the unstable fuel prices by creating a new pay as you go insurance program which does seem to offer a bit of financial relief.  

The purpose of this pay as you drive program, officially called Environmental Defense, is to track an individual’s car mileage. Two ways are proposed in which to make this work.One way to do this, is by installing a proprietary odometer that contains an embedded cell phone that periodically calls in your mileage to your insurance company.   

The other method used on a regular basis to track mileage, is a GPS device installed in a phone which tracks the travel route you are taking, much like the On Star system does. If you are indecisive on which method will be best for you, maybe you need to find out a bit more information.   

There are some consumers who feel that the GPS system interferes with their right to privacy, so they do not want it for this reason. The GPS system may have some certain advantages over the propriety odometer method of tracking mileage because it tells how many miles you travel and also the quickest and easiest route to travel. So, you need to weigh your privacy concerns against the potential benefits of each of the systems.
A pay as you drive program may help to save consumers money and reduce the threat of pollution; this is the belief of the Environmental Defense, because most insurance companies will offer you incentives for driving less.One benefit of the pay as you drive program could be a reduction in the number of drivers from the congested streets and highways of the cities, where traffic is now a tremendous problem.    

Auto insurance premiums could be controlled more by the drivers who use the pay as you drive programs and this will also help make  auto insurance more affordable to them.   

You can easily make a determination of how much money a pay as you drive program can save for you. The pay as you drive program charges part of your annual premium rate, into a per mile fee, by your car being assigned to a group in accordance with your vehicle type and how much it is used plus your zip code. When a per mile rate has been determined, you may be responsible for paying an upfront fee for your pre-determined mileage.
The amount of time you will spend driving is what determines whether or not you will receive a rebate or pay more on your insurance premiums.      

There have been estimates of some policy holders being in a position to receive almost a twenty-five percent savings on their auto insurance costs with this type of program.

If our futures can be improved through the pay as you drive auto insurance programs cutting the cost of insurance and relieving the congestion and pollution on our highways, it will be much better for every one.