Sep 10
Pay-as-You-Drive Insurance Can Provide Major Savings
I’ve written about this topic in recent weeks, but with gas prices through the roof it’s worth repeating.
If you’re like most drivers, you’re seeking ways to drive less and save money. There is a recent new car insurance program that some insurance companies are offering in which you can pay-as-you-drive. It is emerging as a prominent way consumers can cut car-related costs.
According to a Brookings Institution report, about two-thirds of households would benefit from a usage-based program, with an estimated average savings on auto insurance of about $270 per car per year.
There are currently two companies that offer these types of programs (not offered in every state). Progressive auto insurer and GMAC Insurance. Drivers who select pay-as-you-drive have a device installed in their vehicles that measures driving behavior through distance, time of day and other factors; the factors are reported to the insurance company and premiums are set accordingly.
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September 12th, 2008 at 5:55 am
Would pay-as-you-drive insurance work for people who use Zip-Cars in the inner city, or does that type of service have its own insurance that they are selling with the rental service?
Jerry