Most people are barely scraping by when it comes to being able to afford driving a car. Some have opted for public transportation, even more have joined carpools. Despite the fact that these are big ways to chip away at the price of gas, in no way does it solve the problem as a whole.
While these options might save on fuel consumption, there are still other costs associated with driving and owning a car, such as insurance. No matter how a person tries to reduce his/her driving they are still charged a full price for auto insurance.
A lot of insurance agencies are considering new insurance plans. There is a new plan that some states are trying, pay per mile auto insurance.
The cost of this insurance is calculated against the number of miles that are driven. A plan such as this would stand to benefit drivers and insurance companies alike. No more full coverage rates when you are one that drives less.
Pay per mile auto insurance will give drivers more control over their coverage and the price that they pay. Discounting the costs for people who use other forms of transportation is good news to the ears of many. The cost for everyone will be reduced.
What type of system would be enforced to determine the number of miles that one drives? Obviously whatever system is decided on will have to be tamper proof.
Although nothing is official, one possibility includes the installation of an odometer that is linked to the insurance company and sending all information about the amount of travel that you do or perhaps even using something like a GPS unit.
The less that a driver uses their vehicle, the lower their premiums or payments will be. It is likely that the biggest savings will be given to drivers that travel less than 15,000 miles annually.
This is a wonderful arrangement for people that are using public transport or that have reduced the number of miles that they drive. But, the plan is just offered in Arizona, Indiana, Illinois and Pennsylvania.
While these options might save on fuel consumption, there are still other costs associated with driving and owning a car, such as insurance. No matter how a person tries to reduce his/her driving they are still charged a full price for auto insurance.
A lot of insurance agencies are considering new insurance plans. There is a new plan that some states are trying, pay per mile auto insurance.
The cost of this insurance is calculated against the number of miles that are driven. A plan such as this would stand to benefit drivers and insurance companies alike. No more full coverage rates when you are one that drives less.
Pay per mile auto insurance will give drivers more control over their coverage and the price that they pay. Discounting the costs for people who use other forms of transportation is good news to the ears of many. The cost for everyone will be reduced.
What type of system would be enforced to determine the number of miles that one drives? Obviously whatever system is decided on will have to be tamper proof.
Although nothing is official, one possibility includes the installation of an odometer that is linked to the insurance company and sending all information about the amount of travel that you do or perhaps even using something like a GPS unit.
The less that a driver uses their vehicle, the lower their premiums or payments will be. It is likely that the biggest savings will be given to drivers that travel less than 15,000 miles annually.
This is a wonderful arrangement for people that are using public transport or that have reduced the number of miles that they drive. But, the plan is just offered in Arizona, Indiana, Illinois and Pennsylvania.
About the Author:
Learn more here: Low Cost Auto Insurance and Discount Auto Insurance. Chimezirim Odimba teaches how to pay less for more.
No comments:
Post a Comment