Looking to lower your insurance premiums? Tired of overpaying for coverage when you’re barely on the road? A new usage-based insurance policy could save you 10% or even 15% on your premiums. It’s known as pay-as-you-drive insurance, and it works by charging you a fee based on how many actual driving miles are reported to the your insurance company. Find out more about this revolutionary and growing take on auto insurance. Reporting Miles Currently, there are several different methods available to report your miles back to your insurer. About Pay-as-you-drive Usage-based insurance has actually been around for a number of years, but it never really caught on in the United States. Today, however, people are really looking for creative ways to save money-especially on insurance-so no rock has been left unturned. Pay-as-you-drive insurance rewards people who drive less by charging them less. Makes sense, right? If you drive 100 miles in a month, you pay for 100 miles. If you drive 1,000, you pay for 1,000. Checkups Some insurance companies require you to have an approved garage, mechanic, or agent check the mileage on your vehicle once a month or however long your billing period may be. Honor system Some insurers, not wanting to be left out of this new type of insurance but not wanting to pay to establish relationships with mechanics or send out agents, trust the policyholder to report what the odometer says accurately. If they find out you’ve been lying, your coverage will be dropped. So make sure to be honest with them. Trust is a valuable commodity. Black box A few insurance companies have been experimenting with GPS-enabled chips installed in cars signed up for pay-as-you-drive coverage. These chips will report the mileage back to the insurance company automatically. As a bonus, your insurance will be cheaper because the chip will allow the insurance to work with police to recover stolen vehicles more easily. Theft costs down! Can everybody save? This type of insurance is not available in all locations. It is still relatively new and experimental at the moment, but that is changing. Several companies have announced expanded coverage into various US states. While your current insurance provider may not offer usage-based insurance, there is likely another company that will. Another hiccup in your savings with pay-as-you-drive comes when you drive a lot of miles. People who have long commutes or frequent road trips probably will not save with usage-based insurance. You might be better off with more traditional coverage options. Usage-based Car Insurance Providers The biggest insurance companies that are currently offering usage-based policies are State Farm and Progressive, however others may soon join the game. Car insurance companies in the United States have been resisting the idea for a while because they fear losing money, but demand from consumers has been overwhelming. Tell your provider to offer usage-based car insurance.
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AuthorI am student who did some research on Insurances and Posting what ever Info i got from Internet . Please Check with respective Policy before Buying. Archives
February 2018
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