What Is Pay-Per-Mile Car Insurance and How Drivers Can Pay Less on Their Premiums?

LOS ANGELES, Dec. 4, 2020 /PRNewswire-PRWeb/ -- Compare-autoinsurance.org has launched a new blog post that explains what pay-per-mile insurance is and how it helps drivers pay less on insurance.

For more info and free car insurance quotes, visit https://compare-autoinsurance.org/why-drivers-should-get-pay-per-mile-car-insurance/

Drivers who are no longer using their vehicles as much as they used before, can save some money when getting a car insurance policy. Paying for a full coverage auto insurance policy doesn't make sense for these drivers. However, since it is required by law, cutting out car insurance entirely from their expenses is not an option for these drivers. By making use of telematics technology, pay-per-mile insurance helps policyholders and car-owners with their problems on expenses by introducing an option that lets them pay for their insurance rates based on how much they use their cars.

Before getting pay-per-mile insurance, drivers should consider the following:

    --  How the rates are determined. Pay-per-mile insurance charges the
        policyholders only for the miles they drove. Many of them are already
        saving 25%-40% on their auto insurance premiums. Usually, drivers who
        are driving for less than 500 miles per month should consider getting
        this type of insurance.
    --  It's not a new concept. Back in the mid-1980s, the National Organization
        for Women filed a class-action lawsuit against the car insurance
        industry, claiming discrimination. They claimed that car insurance
        providers were charging more for policies covering women drivers, even
        though statically, women have fewer accidents. As it turns out, the
        reason is not that women are naturally safer behind the wheel than their
        male counterparts. The reason is that women drive less.
    --  It's a win-win situation. Policyholders who drive their cars for less
        than 2,000 miles per year can get incredibly cheap policies and the
        insurance company can still make a profit. It also benefits the
        insurance companies because pay-per-mile car insurance would ensure that
        those who drive less will not be forced to "maximize" their policies by
        using their car more, in turn causing more accidents, which will mean
        costs for the company. Of course, there is always the issue of fraud.
        However, insurance companies have some solutions for that. Some
        companies are asking their customers to send in photographs of their
        odometer settings from time to time.
    --  It's a green idea. Pay-per-mile insurance can encourage people to drive
        less, saving on resources and resulting in cleaner air.

For additional info, money-saving tips and free car insurance quotes, visit https://compare-autoinsurance.org/

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SOURCE Compare-Autoinsurance.org