The changing needs of consumers looking for auto insurance, has been the reason why insurance companies have looked for ways to respond to their needs over the years.
Consumers all across the country are looking desperately for some way to save some money on auto fuel as gas prices continue to be very unstable. Paying auto insurance in combination with high gas prices can really put our finances in a tight grip. Insurance companies have responded to the unstable fuel prices by creating a new pay as you go insurance program which does seem to offer a bit of financial relief.
Officially called Environmental Defense, the program’s purpose is to use it to track an individual’s car mileage. Two ways are proposed in which to make this work.One way of doing this is, from time to time an embedded cell phone containing a proprietary odometer calls in your mileage to the insurance company.
One other method of tracking your travel route to report the mileage involves installing a GPS device into a phone in the car, which operates just as the On Star system works. A little more information may be most helpful when you are trying to make a clear decision on the method that is right for you.
Some people object to the GPS system, by stating that it interferes with their right to privacy. The GPS device has certain advantages over the propriety odometer method of tracking mileage, because it not only keeps track of the mileage count, it also pinpoints the right time to travel, the amount of time spent traveling and the route traveled l. You should make a comparison of your concerns for privacy and the probable benefits of each method.
The Environmental Defense has the idea that a pay as you drive program will save the consumers money and help reduce pollution, because the insurance companies will offer 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 prevalent.
The pay as you drive insurance programs, will have a chance to make auto insurance more affordable by giving the consumers more control over their auto insurance premiums.
You can easily make a determination of how much money a pay as you drive program can save for you. This type of program will charge part of your annual premium rate into a per mile fee by assigning your car to a group of consumers according to vehicle type and the frequency of usage plus your location according to your zip code. When the per mile rate is determined you most likely will have to pay an upfront fee for your pre-determined mileage.
The amount of time you will spend driving is what determines whether or not you will receive a rebate or pay more on your insurance premiums.
There have been estimates of up to twenty-five percent savings some policy holders will enjoy on their auto insurance, when using this type of program.
If you can actually save money on the cost of insurance with pay as you drive auto insurance and improve the environment and cut down on the amount of congestion on our highways, it could be one of the best ways to go.
Tags: Auto Insurance, environmental defense, pay as you drive auto insurance