The cost of driving is really off the hook and impossible to pay for by many. Some have opted for public transportation, even more have joined carpools. While these are great ways to save on the cost of gas, by no means do they encompass the whole of driving.
Car owners are still stuck paying for car insurance coverage even when their driving is very limited. Essentially, auto insurance indicates a monthly bill, regardless of the time that is spent on driving.
New options for auto insurance are being explored and tried. There is a new plan that some states are trying, pay per mile auto insurance.
The premiums for this kind of insurance would be based on how much many miles that you drive. Pay per mile auto insurance is intended to life the burden from both car owners and insurance company’s. For drivers that don’t use their vehicles as much, there is no need for them to pay for full coverage auto insurance.
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.
How could an insurance company keep track of the mileage that a driver has? They have to protect themselves against scammers that will try to manipulate the system.
The details are not set in stone yet but it is suggested that either an odometer would be installed by the insurance company that would directly report your mileage to the insurance company or they could use something like a GPS system.
Those that will get the biggest price cuts will be those that travel the least. 15,000 miles per year and under will be the cut off point for those that want to see the lowest payments.
With many people driving less, this will be a perfect solution for them and a great way to save some money. But, the plan is just offered in Arizona, Indiana, Illinois and Pennsylvania.
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