Since the start of the economic downturn, auto insurance corporations have been in pursuit of various ways through which they could come up to the ever-demanding needs of their customers. As the prices of fuel reach to sky rocketing heights worldwide, consumers make anxious attempts to save their finances when they refuel their vehicles. These hiked up prices coupled with the premiums people have to pay to these insurance companies have reduced the lives of many to a state of crisis. To deal with this situation, insurance companies have devised a plan named ‘Pay as you drive.’ According to them this program will provide the consumers with the economic relief that they are seeking in such troubled times.
The program also referred to as Usage Based Insurance deals with the mileage and distance your cars is driven. Generally there are two methods used to measure the usage. One approach is by fixing an odometer that has a built in mobile phone that frequently inputs about your mileage to the respective insurance company by simply calling them. The second method employs a GPS gadget in your car similar to the OnStar way to disclose your definite traveling path.
Some patrons firmly believe that since the GPS system interferes with one’s privacy in the car and thus they state that the method is not justified. \nevertheless this system is still far better than the odometer as the GPS not only keeps track of the distance traveled but also provides valuable information about alternate traveling route, which comes handy for the driver in case the driver needs to change route due to a traffic jam, road block or simply needs to find direction to his/her desired destination. Therefore, one should ponder over their privacy apprehensions in relation to all the prospective advantages one might achieve.
The pay as you drive program also make it possible for the average consumer to save money. This is because the companies will award you with monetary benefits if you drive less. This in turn will help to considerably reduce pollution, and it is a program that is well received by metropolitan cities where pollution on major highways and busy streets are of a critical concern to many residences.
The big advantage with this program is that it gives the insurer more control over their premiums since it is calculated based on the distance driven. The usage based insurance is also a great option for those that do not drive frequently, need a car on temporary bases or individuals with a low income. This program will also cut down on traffic as more people will not use their car unnecessarily since each additional mile has a price tag.
Overall this program has many benefits both for you as well as environment. If you are not using your car all that often and only need it for occasional driving, this could be a great money saving option for you. It has been reported that this program on average can save you up to 25% in insurance cost.
If you are looking to obtain insurance, you can compare auto insurance quotes from major insurance provides here to compare prices and policies side by side. This will make it easy to find the insurance that is right for your.
