You can pay as you speak using an internet-connected phone plan So why not pay when you drive with auto insurance? It’s a nice idea, but can be paid when you drive your auto insurance benefit you? The reason behind paying when you drive insurance is quite simple. It is that when you do not travel often and you don’t have to pay the high premiums for insurance. People who advocate for this type of insurance think there are many advantages to this kind of policy. What happens if you carpool to get to work, or use public transportation? It is unlikely that you use your car a lot and that’s why you are paying excessive premiums. With pay as you drive insurance, you’d be able to pay according to the amount you use.
Another instance where this program could be beneficial is for retirement home owners in warmer climates, such as the “snowbirds” living within Florida or Arizona during six years. They also have for six months of the year in New York or Toronto for an example. In essence, insurance companies would determine the average cost of driving for each vehicle type. It can then be broken down into percent per mile rate. If you want to utilize the pay-as-you-drive auto insurance program, you can buy a certain amount of miles and will be covered by insurance throughout this time.
Pay as you drive insurance is a good idea for those who don’t use their vehicle often or are looking for ways to save money or environmental alternative to save the environment. This type of insurance is not available yet however there are advocates across the country who are looking to change this in the near future. Organizations like Environmental Defense, the Conservation Law Foundation and even the U.S. Environmental Protection Agency are currently working on forming the national cooperative which would cooperate with insurance companies in order to provide deep discounts for drivers with low mileage; a half move towards the development of 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 discounts to OnStar customers in certain states. The OnStar system records a car’s Odometer readings between the start and the end of the policy’s period to determine the mileage. Motorists who travel less than the certain annual miles can get insurance premium discount that can be as high as 40 percent. PAYD programs are being offered for Israel, South Africa and Holland. PAYD is increasing in popularity and will be coming to your location in the near future.
However, will it be able to be available in the largest Car Insurance market, the UK? There’s been a lot of discussion and forwarding of ideas, but they have not yet been accepted. Discussions have taken order and considerations have been made, however, in terms of UK car owners are concerned that’s the extent to which it’s been. Maybe the business is at risk by implementing this new money saving concept , and it’s been delayed for a while however, as the pressure and national policies change into the new plan, it is absurd to expect the UK to be left behind. keep your fingers crossed.
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