How Can You Pay Auto Insurance As You Go
The changing consumer needs have been what many auto insurance companies have looked for ways to respond to over the years. Ways to save money on soaring gas prices is what consumers all across the country are desperately seeking. Our finances are now tightly bound by many consumer goods, and among them is the soaring price of gasoline and the costs involved with paying auto insurance. Insurance companies have responded to rising prices by creating a new pay as you go insurance program which may offer some financial relief. The program is officially called Environmental Defense and the purpose of the program is to track an individual’s car mileage. In order to accomplish this there are two proposed ways. 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. The other method involves installing a GPS device into a phone in your car, like the On Star system, to reveal your actual travel route. 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 system may have some certain advantages over the propriety odometer method of tracking mileage; it tells how many miles you travel and also the best time and easiest route to travel. It is best to compare your privacy concerns with the benefits of the two methods. 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. The pay as you drive program could also reduce the congestion in cities where the highways are overcrowded and the traffic problems are extensive by reducing the number of drivers. Drivers could gain more control over their auto insurance premiums through the pay as you drive programs and thus making auto insurance more affordable. It is easy to decide how much can be saved by a pay as you drive program. The program would charge part of your annual premium rate into a per mile fee by assigning your car to a group, according to your zip code, vehicle type and usage. When a per mile rate is determined, you may be responsible for paying an upfront fee for your pre-determined mileage. The amount you will have to pay on auto 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. There have been estimates of a possible savings of up to twenty-five percent that some policy holders can have on their auto insurance when using this type of program. We must ask ourselves if the pay as you drive auto insurance programs can improve our way of life, through less pollution and congestion and lower costing insurance coverage, what are we waiting for.
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