Pay as You Go Auto Insurance

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Pay as You Go Auto Insurance

Pay As You Go Auto Insurance gives you accurate mileage for the miles driven for a certain period of time. Pay as you go car insurance plans can also save low-mileage drivers hundreds of dollars per year. In the past, motorists who drove very little would get a small discount but would still pay much more proportionately than drivers who drove a lot.  

It seems every day now, we hear of a new way technology is changing the world around us, supposedly making our lives more efficient and productive. The digital age has spawned countless inventions, and this is no different in the insurance market. 

For decades, many drivers who drove very little or not at all had to pay their full premiums and, if they were lucky, would get a small discount for being considered a lower mileage driver.


Insurers have Made Big Profits on Low-Mileage Drivers 

Large insurers ended up with big profits year after year. This is largely due to safe motorists who didn’t drive much. Car insurance carriers’ market to these consumers with an endless barrage of television and online commercials claiming to save you time and money. 

Did anyone ever think about the costs of those advertisements? Well, those costs get added to your insurance bill. Let’s look at real ways to save on pay as you go auto insurance with an idea, although it is starting to catch on while not very popular today.

The idea behind pay as you drive auto insurance is to allow the driver to only pay-for-miles-driven. This option seems fair enough, and if you don’t drive too much, it could be a smart choice for those on a budget. 

Advancements in Technology have Allowed Drivers Mileage to be Tracked 

Thanks to advances in technology, auto insurers can track the miles you drive and the speed. This type of automobile tracking is often referred to as telematics, which utilizes technology to gather information about your vehicle while it is in motion. [notification content=’In short, the safer of a driver you are and the fewer miles you drive each month, the more you can save.’]

For example, let’s say you live only 5 miles from work and don’t drive much on the weekend. Your total miles driven each month are around 500, and you rarely drive aggressively or over the speed limit. In this scenario, you could save $600 or more a year on full coverage. To compare pay-as-you-go car insurance plans, and get car insurance under $100 a month, just enter your zip code to get started.  


What Exactly Does the Device Monitor?

Three primary indicators are monitored on your vehicle:

  1. How many miles do you drive in a given period, most often monthly?
  2. How fast do you drive your vehicle? For example, if you ever go past 80 mph, this will be deemed reckless and could cause your insurance rates to go up significantly.
  3. How fast you break. If you are breaking extremely hard all the time, then this is considered reckless, so watch those sudden stops and drive with caution at all times.

Why are the Devices Becoming More Accepted?

In recent years, the idea of installing a monitoring device on a person’s vehicle has caught on more and more.  This technology is no longer considered an intrusion into one’s personal privacy as it was when the technology first came out. In fact, in a recent survey done by a consumer reporting agency, about one in three drivers were aware of usage-based devices and have thought about having one installed. 

Recent projections have claimed by the end of 2014, about 6 million USA cars will have a usage-based device installed in their vehicles. Why are the devices becoming more accepted? The answer to that is simple; they save drivers and insurance companies serious money.

[notification content=’One group of consumers that have welcomed the idea of vehicle monitoring devices is parents with teenage drivers.’]

For worried parents, having a device that monitors their teens driving behavior, such as speed, almost seems like a device sent from heaven. With teens texting while driving these days and even checking their iPads and other electronic devices behind the wheel, every parent should strongly consider installing a telematics device. The truth is, these devices change driving behavior and could just save your teen’s life. Teen insurance rates have been steadily climbing in recent years, so getting a good2go insurance policy is a good auto insurance idea.


Is a Usage-based policy right for pay as you go auto insurance?

First of all, ask yourself if you feel okay with having your driving recorded at all times with a monitoring device. If the answer to this is yes, you need to be honest with yourself and assess whether or not you are a safe driver and do not speed. 

If you feel comfortable with having the technology monitoring your car and are a safe driver at all times, then you are good to go. A usage-based policy can save you up to 20% or more on your car insurance. If you qualify for other discounts, such as military service, you could be looking at some serious insurance savings.

pay as you go auto insurance

What Car Insurance Companies offer Pay as You Go Auto Insurance?

In general, large insurance companies have these programs. These insurers include most of the top 10, such as Allstate, Esurance, Safeco, and GMAC. Progressive Insurance company has actively promoted pay as you go auto insurance on TV and online. Progressive insurance claims very affordable good to go insurance rates. If you are considering this type of policy, you should get a quote from all the insurance companies and compare rates. 

It is important to note that this type of specialized insurance may not be available in your state, although carried by the insurance company. This is because each state has a set of insurance regulations and may prohibit usage-based insurance or has not yet approved this type of policy. If you are actively seeking a good to go insurance policy, check online and get quotes with the same coverage options available to you.

Pay as You Go Car Insurance Rates

How much money can a person expect to save to have one of these devices hooked up to their car? How much can a person save by losing just a bit of privacy? The answer varies from company to company but can be as high as 40% based on the most recent policy data. If you paid $2,000 for your auto insurance coverage last year, then that could mean saving as much as $800 per year. If you are a safe, responsible driver, what do you have to lose except your high-cost insurance bill?

Your savings could be even more if you check for all of the insurance discounts you qualify for GoodToGoInsurance.

Available Auto Insurance Discounts

Insurance carriers have multiple discounts available, and you should be aware of all of them. Some of the popular ones include:

  • Safe Driver
  • Low Mileage
  • Good Student (GPA of 3.0 or higher) 
  • Teacher
  • Military and Veteran discounts
  • Senior Citizen 
  • Bundling Home and Auto Insurance
  • Multi-Vehicle Discounts 

The best way to save with pay as you go auto insurance is to compare multiple quotes online. The best deals on car insurance are almost always found online. Get started and comparison shop at least five quotes from several carriers that offer pay-as-you-drive auto insurance plans. 

You can get a quote from the comfort of your home in about four or five minutes. You can even use your smartphone to check rates. Let the insurance companies fight for your business and compare the best pay as you go auto insurance plans. The quote is totally free, so what are you waiting for?