Pay As You Drive Car Insurance

[djs]

I've heard about this! I'm all for it though because I don't drive that often to work(only about 8 miles) so it'd definitely be advantageous for those who don't drive much like me. Does anyone have any news about it in the States? like which insurance providers might start trying it out, too?

This already happens, really, it does. Seriously, one of the MAJOR rating factors used is milage driven.

Changing how you pay for it, to something like buying a block of miles, will probably increase your premiums, not lower them. If it lowers them, you are probably paying to much for your auto insurance.

There is also a small flaw that buying a block of miles for coverage probably violates a few states laws, though I don't know this for sure. For the most part, you buy a policy period (required) which is rated for xxx miles. If you go over xxx miles by a certain number (2500??) you are supposed to notify your carrier who can re-rate your policy accordingly. Nobody ever does this, at least in my experience.

Dan

 

[phil23]

This is like having someone check on you. The insurance is based on the manner you drive you car.

 

[Texasproducer]

We used to have one here in Texas called MileMeter but they went bankrupt. Guess it wasn't as good as an idea as they thought it would be.