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The Pros of Pay-As-You-Go Auto Insurance

pay as you go insurance

Do you drive less than 10,000 miles a year? If so, that puts you in with the majority of American drivers; about two thirds of them. According to the United States Department of Energy Efficiency and Renewable Energy, the national average is between 10,000-12,000 miles a year. Standard auto insurance is based on the national average. Essentially, this means that most drivers subsidize auto insurance for the smaller number of drivers who drive more. New auto technology allows insurance companies to base rates on the way drivers actually use their cars. New kind of policy goes by a number of names, including user-based insurance and pay-as-you-go insurance. Let’s learn more about the pros of pay-as-you-go auto insurance below. How it Works Many auto insurance companies, both large and small, offer pay-as-you-go-insurance. You have a choice of policies available to you in every state, each with a plan based on demographics and geographical location. When you buy a pay-as-you-go insurance, the insurance company installs a device on your car that keeps track of your mileage. Depending on which state you live in, the device may also track your speed, brakeage, and mileage. Your driving habits greatly influence the price of your ...

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