How Can You Pay As You Go Car Insurance

Many car insurance companies have tried to find ways to respond to the changing needs of consumers, over the years. Ways to save money on soaring gas prices is what consumers all across the country are desperately seeking. The cost of car insurance plus the rising cost of gasoline for our cars has quite a strangle hold on our finances. A new insurance program from some insurance companies has been created to offer the consumers a pay as you drive which may give some financial relief.  

The pay as you go program is officially called Environmental Defense and its purpose is to track an individual's car mileage. Two ways are being proposed to accomplished. The installation of a proprietary odometer that has an embedded cell phone that calls in your mileage to your insurance company from time to time.   

One other method of tracking your travel route to report the mileage involves installing a GPS device into a phone in the car, just as the On Star system works. You could probably use a little more information before you make a decision on which method is the one for you.   

Some consumers object to the GPS system, because they feel that it imposes on their right to privacy. The GPS device has certain advantages over the propriety odometer method of tracking mileage because it not only keeps the mileage count, it also pinpoints your time and route of travel. What you need to do is weigh your privacy concerns against the possible benefits of the method.

A pay as you drive program may help to save money for the consumers and reduce the threat of pollution; this is the belief of the Environmental Defense because insurance companies will offer you incentives for driving less. An added benefit of the pay as you drive program is that it could end up reducing driving and congestion in cities where traffic problems with overcrowded highways are mounting.   

Drivers could gain more control over their car insurance premiums through the pay as you drive programs and thus making car insurance more affordable.  

It can be simple to determine how cost effective a pay as you drive program will be. A part of your annual premium rate would be charged into a per mile fee by assigning your car to a group, according to vehicle type and usage and your zip code. When your per mile rate has been determined you could have to pay an upfront fee for your pre-determined mileage. The amount you will have to pay on car insurance and whether you will receive a rebate or have to pay more, will be determined by the amount of time you spend driving the car.     

It has been estimated that some policy holders could receive almost a twenty-five percent savings on their auto insurance costs with this type of program.

If our futures can be improved through the pay as you drive programs cutting the cost of insurance and relieving the congestion and pollution on our highways, it will be wonderful.