You can pay while chatting with a cell phone plan, so why not pay while driving auto insurance? It sounds like a good idea; but would pay while you are driving auto insurance work for you?
The idea behind the compensation when you drive car insurance is simple. Basically, this is it - if you don't drive a lot, you won't pay high insurance premiums. Advocates of this type of insurance policy believe that this type of program has many advantages. Less air pollution, less gas consumption and less costs for the consumer.
What if you carpool to work or take public transportation? You don't use your car a lot, so why are you paying high premiums. With a salary while driving car insurance premiums, you could literally pay as you go. Another situation where this plan would be advantageous is that of many retirees who have winter homes in temperate climates, the " snowbirds " living in Florida or Arizona six months a year and six months in New York or Toronto by example.
Essentially, insurance companies would set an average driving amount for each type of car. It could then be broken down into cents per mile. If you wanted to pay us the auto insurance system while driving, you could buy a set number of miles and you would be covered for insurance during that time.
Pay as you drive auto insurance is a great idea for people who don't use their cars a lot or who are trying to find economical methods or ecological alternatives. Currently, this type of program is not yet available, but there are supporters in many states who hope to change this soon.
Groups like Environmental Defense, the Conservation Law Foundation and even the United States Environmental Protection Agency are working to organize a national cooperative that would work with insurance companies to offer significant discounts to low-mileage drivers; halfway through PAYD insurance (Pay As You Drive).
General Motors and On-Star offer PAYD rates. In mid-2004, General Motors Acceptance Corporation (GMAC) Insurance began offering mileage-based discounts to OnStar subscribers located in certain states. The OnStar system reports a vehicle's odometer readings at the start and end of the insurance period to check the mileage. Motorists who drive less than the specified annual mileage may receive insurance premium reductions of up to 40%.
PAYD programs are also currently available in Israel, South Africa, and the Netherlands. PAYD is growing and will soon arrive in your region.
