I am going to talk about the 7 reasons pay as you drive insurance is something that you should consider. Pay as you drive insurance is also known as usage insurance.
The rate you pay depends on the type of car you drive, the amount you drive your car, the way that you drive your car and where you drive your car. This is made possible by the technology that allows companies to record all of the different things that happen while you are in the car.
1. The cost of car insurance is very difficult for some people to understand. The insurance companies will use statistics about large groups of people to decide how much they should charger anyone for insurance. The group that an individual falls into will determine the cost of the insurance. When you use pay as you drive insurance it is based on your driving ability and not others.
2. It is very cost effective for people who do not drive their vehicle much. The rates will drop if you only drive the car a short distance one or two days a week, the price you pay will be a lot lower.
3. You are rewarded or penalized for the way you drive and not the way that everyone else drives. Most of us think we are the world’s best driver and it is everyone else who is driving erratically. The computers will record how fast you drive, how far you drive and many other things which will truly help decide how safe a driver you are. This will be reflected in the cost of your insurance.
4. Parents will learn how their kids are using the car. When the technology is used to help determine the insurance rates, it will also teach parents about how their kids are really using the car.
If the kids say they are only driving to and from school and are always following the speed limit, then the price of the insurance will show that. If the rates go up because the car is being driven much more than you think, it will be discovered and the kids will have to answer some serious questions.
5. It truly could save you hundreds of dollars a year on your insurance. The ads for insurance companies all make this promise, but pay as you drive insurance might be the best way to actually achieve the savings.
6. It will make you a better driver. If you know that not speeding can save you money, it is great motivation to drive in a safer manner.
7. You will find ways to drive less. Since you will be charged for insurance based on how far you drive, it might help you find ways to drive less. This will not only save money on insurance, it will also save money on gas.
This type of insurance is going to become more popular in the future. It is the fairest way to determine how much you should pay for insurance and all of the 7 reasons pay as you drive insurance will help make it something that more people are going to ask for from their insurance company.