Usage-Based Car Insurance
For most American drivers, car insurance is not only legally mandated but is a real necessity. However, it’s now becoming possible to sign up for as pay-as-you-drive, or usage-based car insurance. If you don’t drive very much, it can give you lower rates. However, there are certain things to know before you decide that this is the best option for you.
Wireless Transmission Devices will Monitor Car Usage
As with traditional insurance programs, your driving habits will still play a large role in your rates. Unfortunately, if you had a habit of occasionally driving recklessly in the past, usage-based insurance programs won’t let you use the honor system to prove that you’ve changed your ways for good.
Usually, the amount of miles that you drive in a particular period is automatically calculated and transmitted to your insurance company through a device that resides in your car. However, Allstate and Progressive are just two companies that also monitor driving behavior such as the number of times that a policyholder drives at speeds over 80 miles per hour or the way that they use their brakes. A member of Progressive’s usage-based insurance program notes that unusual braking patterns can point the finger at aggressive drivers.
Understandably, some drivers are concerned that [Read more…] about Does Usage Based Car Insurance Offer a Route to Lower Rates?
Now that you won’t have to commute back and forth to work, it may make sense for you to park the car in the driveway and let it sit. If you have two cars, consider only using one and removing the insurance on the other. Talk to your insurance agent and see what can be done about lowering your insurance by not driving one of your vehicles. Depending on the laws of your state or the conditions of your loan contract, you may be able to drop some or all of your coverage on one of your vehicles.