Pay as you go auto insurance

pay as you go auto insurance

Pay as you go auto insurance give you an accurate mileage that you have driven for a certain period of time. It seems every day now we hear of a new way technology is changing the world around us, supposedly making our lives more efficient and productive. This is especially true when it comes to auto Insurance, with an endless barrage of television and online commercials claiming to save you time and money. Well did anyone ever think about the costs of those advertisements and that those costs get added into your insurance bill? Let’s look and real ways you can save on go car insurance with an idea, although while not very popular today, is starting to catch on.

The idea behind go auto insurance is to allow the driver to only pay-for-miles-driven. This seems fair enough and if you don’t drive too much, it could be a smart choice for those on a budget. Thanks to advances in technology, auto insurers can now track the miles you drive and also the speed. This type of automobile tracking is often referred to as telematics, which utilizes technology to gather information about your vehicle while it is in motion.

Is a Usage based policy right for pay as you go auto insurance?

First of all, ask yourself if you feel ok with having your driving recorded at all times with a monitoring device. If the answer to this is yes, then you need to be honest with yourself and assess whether or not you are a safe driver and do not speed. If you feel comfortable with having the technology monitoring your car and are a safe driver at all times then you are good to go. A usage based policy can save you up to 20% or more on your car insurance. If you qualify for other discounts such as military service, you could be looking at some serious insurance savings.

So what exactly does the device monitor? There are three primary indicators that are monitored on your car
1. How many miles you drive in a given period, most often monthly.
2. How fast you drive your vehicle. For example, if you ever go past 80 mph, this will be deemed reckless and could cause your insurance rates to go up significantly.
3. How fast you brake. If you are breaking extremely hard all the time, then this is considered reckless, so watch those sudden stops and drive with caution at all times.

In recent years, the idea of installing a monitoring device on a person’s vehicle has caught on more and more and is not considered to be an intrusion into one’s personal privacy as it was when the technology first came out. In fact, in a recent survey done by a consumer reporting agency, about one in three drivers were aware of usage based devices and have thought about having one installed. Recent projections have claimed by the end of 2014, about 6 million USA cars will have a usage based device installed in their vehicles. Why are the devices becoming more accepted? The answer to that is simple, they save drivers and insurance companies serious money.

One group of consumers that have welcomed the idea of vehicle monitoring devices is parents with teenage drivers
For worried parents, having a device that monitors their teens driving behavior such as speed, almost seems like a device sent from heaven. With teens texting while driving these days and even checking their ipads and other electronic devices behind the wheel, every parent should strongly consider installing a telematics device. The truth is, these devices change driving behavior and just could save your teens life. Teen insurance rates have been steadily climbing in recent years, so getting a good2go insurance policy is a very good auto insurance idea.

What Car Insurance Companies offer Pay as You Go auto Insurance?

In general, the large insurance companies have these programs. These insurers include most of the top 10 such as Allstate, Esurance, Safeco and GMAC. Progressive Insurance company has actively promoted pay as you go auto insurance on TV and online. Progressive insurance claims very affordable good2go insurance rates and if you are considering this type of a policy, you should definitely get a quote from all the insurance companies and compare rates. It is important to note that this type of specialized insurance, although carried by the insurance company, may not be available in your state. This is because each state has a set of insurance regulations and may prohibit usage based insurance or has not of yet approved this type of policy. If you are actively seeking a good2go insurance policy, check online and get quotes with the exact coverage options that are available to you.

Go Car Insurance Rates
So just exactly how much money can a person expect to save for having one of these devices hooked up to their car and losing a bit of privacy? The answer varies from company to company but can be as high as 40% based on the most recent policy data. If you paid $2,000 for your auto insurance coverage last year, then that could mean savings as much as $800 per year. If you are a safe, responsible driver, then what do you have to lose except your high cost insurance bill?

Your savings could be even more if you check for all of your insurance discounts you qualify for

Good2go Insurance carriers have multiple discounts available and you should be aware of all of them. Some of the popular ones include – military, teacher, good driver and senior citizen. The best way to save is to pay as you go auto insurance and get at least 5 online quotes. Today, most people can get a quote from the comfort of their home online in just a few minutes. Let the insurance companies fight for your business and compare rates now. The quote is always free so what are you waiting for?

by Toni Kohonen