Pay as You Drive Insurance Programs
Less-Frequent Drivers Can Often Save Money
People who want to save money on their auto insurance premiums can often check with their insurer to see if any low-mileage discounts are available. However, residents of a growing number of states are also now able to benefit from pay-as-you-drive programs offered by some companies.
Low-mileage discounts can be particularly useful to people who telecommute from home at least some of the time, as well as for people who may be retired or approaching retirement. People who drive less than 10,000 miles per year may particularly have it in their interest to investigate such options.
More recently, California Insurance Commissioner Steve Poizner reported that two auto insurance companies in his state are now offering pay-as-you-drive options under an initiative that he had previously introduced.
"The voluntary pay-as-you-drive initiative is a cutting-edge program that will allow insurers to offer plans based on more accurate mileage, so that people who choose to drive less will pay less for auto insurance," said Poizner.
Such programs typically require customers to verify their odometer mileage using methods that range from GPS technology to visual inspections.
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