Where Do You Live?


State:



Many auto insurance companies have been trying for many years now to address the changing needs of consumers.

Saving money on gas is becoming a bigger priority for many consumers across the country since fuel prices remain volatile. The cost of auto insurance plus the unstable cost of gasoline for vehicles has quite a strangle hold on our finances. A new insurance program, known as a pay as you drive program, may be able to offer drivers some relief on their finances, so this has been the response of some insurance companies.

Called Environmental Defense, the program’s purpose is to use it to record a driver’s car mileage. There are two ways that have been proposed to accomplish this. One way to do this, is by installing a proprietary odometer that contains an embedded cell phone that periodically calls in your mileage to your insurance company.

Another method that is used to track an individual’s car mileage, involves the installation of a GPS device into a phone in your car, just as the On Star system works to show the actual travel route which may be taken. You may want to find out a little more information on each program before you make a decision on which method is the one for you.

There are some consumers who feel that the GPS system interferes with their right to privacy, so they do not want it for this reason. The GPS system may have some certain advantages over the propriety odometer method of tracking mileage because it tells how many miles you travel and also the quickest and easiest route to travel. You should make a comparison of your concerns for privacy and the probable benefits of each method.  

The Environmental Defense has the idea that a pay as you drive program will save the consumers money and help reduce pollution, because the insurance companies will offer incentives for driving less.One benefit of the pay as you drive program could be a reduction in the number of drivers from the congested streets and highways of the cities, where traffic is now a tremendous problem.

The pay as you drive insurance programs, will have a chance to make auto insurance more affordable by giving the consumers more control over their auto insurance premiums.

It can be very simple to determine how cost effective a pay as you drive program could be. This type of program will charge part of your annual premium rate into a per mile fee by assigning your car to a group of consumers according to vehicle type and the frequency of usage plus your location according to your zip code. When the per mile rate is calculated, you may have to pay an initial fee for your pre-determined mileage.

The determining factor of whether you receive any rebate or if you have to pay more for your insurance is the amount of time you spend driving your vehicle.

Some auto insurance policy holders are estimated to perhaps be able to receive a savings of about 25% on their car insurance, if they were to use a pay as you drive program.

If you can actually save money on the cost of auto insurance and improve the environment and cut down on the amount of congestion on our highways, it could be one of the best ways to go.

Additionally, visit Peppercoin Insurance for quotes on health insurance and also home insurance today or to read more of Alisdair Cosgrove’s great articles and to keep up to date with insurance news and developments..

Technorati Tags: , , , ,