Is Pay-As-You-Go Auto Insurance A Good Option?

29 January of 2015

When most people hear of pay-as-you-go, they think of cell phone plans and other utility plans that allow them to pay for and use various services without needing a contract. Pay-as-you-go insurance carries some of the same concepts and it can unburden drivers from the exorbitant costs of car insurance. It is a relatively new concept and only some states are adopting the model, but pay-as-you-go insurance – a policy that is determined by how many miles you drive – is really catching on. If you don’t drive a lot, your policy will be more affordable. It sounds attractive and it seems to make sense, but is it practical? Here are some reasons why pay-as-you-go auto insurance is a good option.

1. Cuts down the probability of major accidents. When you have an incentive not to put so many miles on your vehicle, you will effectively lower your chances of getting into a major collision. If more people sign up for this type of insurance, it could have a sweeping affects on other drivers and the roads could be safer.
2. Reduces the cost of insurance. Of course, pay-as-you-go insurance will be a lot more affordable than a traditional policy that involves a fixed payment every single month. You can ask any insurance agent – perhaps a Chappaqua Insurance agent – and he or she will break down the cost differences between for you. If you don’t drive as often, or if your driving is irregular, you may want to opt for this type of insurance. In any given year, you could save up to 40% on insurance costs and fees.
3. It will help shrink your carbon footprint. With global warming and the human impact of wasteful energy usage, it is important for each and every person to do his or her part. If you opt for an insurance policy that encourages driving less, this can have a far-reaching affect on the atmosphere. Even if you barely reduce how many miles you drive each month, you can still reduce your carbon footprint. Oftentimes, what’s good for the wallet is also good for the environment.

It makes car ownership easier and more affordable. Owning a vehicle can be expensive. Of course, the overall cost can be huge and driving a vehicle off a dealer’s lot could set you back tens of thousands of dollars. If you include all the other costs, like maintenance, fuel and more, the last thing you want is an expensive insurance premium to worry about. Pay-as-you-