Pay as You Go Insurance – Goodtogoinsurance

pay as you goOne popular trend in recent years is pay as you go insurance, which is slowly catching on among consumers. Several large automobile insurers like Progressive have widely promoted these auto insurance programs, that promise to save drivers who drive a limited amount of miles each month a lot of money. Some people also refer to this type of policy as “usage base” insurance.

Like so many other industries that are progressing because of technological advances, some insurance companies have attempted to grab more customers by technology commonly referred to as telematics. These systems are installed on a customers car and monitor not only mileage but also driving performance, such as how fast someone is driving and how hard they break.

The UBI insurance technology is compatible with most new automobiles and just attaches to the diagnostics port. For many, this seems like a serious intrusion into their privacy, while other drivers welcome the idea of being able to save 30% to 50% off their insurance bill. In todays tough economy, saving even $40 per month off of auto insurance is worth it. Some research firms estimate that as many as five million consumers already have PAYG auto insurance, while about 35% of consumers are aware of the technology.

If you are a fast driver and have a constant lead foot and have never seen a speed limit that is high enough, then PAYG auto insurance is probably not for you. Also, if you drive a lot, like a courier or pizza delivery driver, you probably not save anything and in some instances might even get your UBI insurance policy cancelled.

Usage Based Insurance companies

Many large insurers like Esurance, Progressive, Allstate and State Farm have usage based insurance coverage. It is important to note however that every state has different insurance regulations and these plans might not be available yet where you live. As the popularity of telematics continues to grow, more and more states will approve these insurance plans. In five to seven years, usage based insurance will most likely be available nationally. California, under the leadership of acting commissioner Steve Poizner, has already issued permits to several companies. California regulators see pay as you go car insurance as a way to promote less driving and this less pollution. Time will tell if the majority of California drivers end up purchasing these unique insurance policies.

One popular usage based company that was founded in California is “Metro Mile.” This start-up promises to save consumers who drive less than 10,000 miles a year huge money on their auto insurance. The company provides a free app and then charges a fee based on only the miles that are driven. The less you drive then the less you pay. For people who car pool, bike to work or live a couple miles from work, Metro Mile promises to save these drivers hundreds of dollars per year. Get a free pay as you go vehicle insurance quote today and compare several competing quotes.

Pay as you go insurance discounts

Some people think that the savings for telematic monitoring devices are not that much. The reality is, if you don’t drive much, you can realistically save up to 50% off a normal insurance policy. Many insurers like Progressive offer immediate discounts up to 10% just for getting the device installed. With discounts like that, many people are experimenting with usage based car insurance to see if it works for them.

Also, if you sign up for a policy with most companies, you won’t be charged more for driving a lot but rather won’t realize the discounts of driving less. So for example, if your policy allows you a 30% discount for driving less than 10,000 miles per year. Then you take a long trip across the country and end up driving 18,000 miles, you would just pay the normal policy amount. So pay as you go policies have no real down side for consumers who try them out.

PAYG insurance quotes

Getting a pay as you drive insurance quote is fast and free with Just fill out a few simple questions and you will be matched with the best providers in your area. Get started now and lower your insurance bill.