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Tuesday November 21st 2017

Will Pay as you Drive Insurance Save You Money?

Pay as you drive insurance plans are becoming more popular as more states approve the option. With a pay as you drive car insurance policy, drivers only pay for insurance to cover the actual miles that they drive. If someone drives fewer miles, their rates should go down accordingly. The mileage is tracked by an electronic device that can be installed on the steering wheel of any car. The device sends information back to the insurance company, where it is used to formulate the current month’s insurance rates.

Reducing Your Mileage will Impact Your Rates

State Farm insurance company reports that reducing your annual mileage by as little as 500 miles will create a noticeable difference in your insurance premium. Some drivers have the flexibility to adjust their driving schedules so that they put fewer miles on the odometer. Other drivers have very few options when it comes to the amount of driving they do on a daily basis. Drivers who are not able to reduce their mileage will not benefit much from a new pay as you drive policy.

Reckless Driving Patterns Could Balance Lower Rates

The data collecting device that is installed in your car tracks more than just how far you drive. It also reports driving patterns that could be interpreted as risky by the insurance company. Drivers who regularly make fast stops and accelerate quickly from a stop may see their rates adjusted upward to cover their higher likelihood of being involved in an accident. If a driver cannot adjust their driving habits to meet the insurance company’s safety standards, they will probably not see their rates improve while they are participating in a pay as you drive program. In fact, they may see their rates increase.

State Farm Program Offers Immediate Discount

In California, State Farm customers have the option of reporting their mileage once a month rather than installing the electronic device. Drivers who choose to report their own mileage are immediately offered a discount when they sign up for the program. This is the best pay as you drive policy for people who are concerned about the electronic reporting devices being an invasion of their privacy. All drivers who are enrolled in the program will save money right away because of the discount that they receive simply for agreeing to participate in the plan.

Adjusting Driving Habits Will Save you Money

In the long run, drivers have the ability to choose how much money they save through a pay as you drive insurance plan. The people who will see the biggest savings on their insurance premiums will be those who find alternatives to driving and consolidate their trips so that they spend less time on the road. Drivers who adjust their habits behind the wheel so that they drive more safely will also see a difference in their bills. When a customer has the flexibility to stop driving as much, he or she has the ability to control the savings on a monthly basis.


The Economics of Car Theft

Jobs are hard to find, unemployment is on an ever-increasing upswing in spite of official talk of reprieve and support. It’s at times like that anyone would assume theft would increase. Items of extreme value such as cars are one of the most commonly sought after items. First of all, because they are in such demand, second of all, because of the relative ease of selling them off by bits and pieces rather than as a whole, making them hard to track in spite of registrations, vin numbers and such. So why is it that in this time of economic crises auto theft is not on the rise right along with unemployment and insecurity?

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