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The Future of Car Insurance: Pay as You Go Insurance Trends to Watch

Just as with a cell phone plan, you may pay as you go, so why not the same with car insurance? The concept of pay as you drive auto insurance is intriguing. pay as you go auto insurance is based on a straightforward concept. 

Simply put, your insurance costs will be lower if you drive less. Proponents of this insurance plan stress the policy's numerous positive aspects. What if you took public transportation or a carpool to the office? If you don't drive often, there's no reason to pay so much for auto insurance. Auto insurance premiums could be paid on a "pay as you go" basis with a "pay as you drive" system.

Many retirees have second homes in temperate climates, such as Florida or Arizona, this strategy would be useful for them so that they can spend half the year there and the other half in their home cities of New York or Toronto. 

In essence, insurance firms would determine a typical annual mileage total for each vehicle category. It would be possible to calculate the cost per mile. With the pay as you go insurance for car, you can get insurance for a predetermined amount of miles at a time.

Pay as you go Those who don't put a lot of miles on their cars or who look for ways to save money or the environment would be wise to invest in auto insurance. There are advocates in many states who would like to see this type of program implemented in the near future, but for the time being, it is not available. 

Environmental Defense, the Conservation Law Foundation, and the United States Environmental Protection Agency are among the groups working to establish a nationwide cooperative that would collaborate with insurance companies to provide substantial discounts for low-mileage drivers. This would be an intermediate step toward PAYD (Pay As You Drive) insurance.

APRs are available from both General Motors and OnStar. Midway through 2004, GMAC Insurance, a subsidiary of General Motors Acceptance Corporation, began providing a mileage-based discount to OnStar customers in select states. In order to verify mileage, the OnStar system sends in reports at the beginning and end of the policy period.

Insurance companies provide savings of up to 40% to drivers who maintain low annual mileage requirements. PAYD initiatives are also being implemented in South Africa, and the Netherlands at the present time. 

PAYD is increasing in popularity and will soon be available where you live. to find the availability of pay as you go insurance companies in your area you can search online and collect many sources of data then compare them to get the cheap car insurance pay as you go program.

But will the UK, the largest market for auto insurance in the world, ever get it?

Many ideas have been proposed and discussed, but none have been accepted. There have been talks and some thought put into it, but as far as UK drivers are concerned, that's about it. It's possible that the sector has too much to lose by adopting this new cost-cutting idea, so it will be delayed for the time being. However, as time goes on and more and more countries adopt the program, it would be foolish for the UK to remain on the sidelines.

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