Have you ever felt like you haven’t used your car enough and still pay full premiums to car insurance policies? I bet you have. While there are many ways to reduce the cost of your premiums, nothing beats pay-per-mile insurance. If you don’t know much about it, then this article is going to be a huge relief for you. Not only will you know about pay-per-mile car insurance, but you will also know how to save money from it.
The insurance cost of every car is different. Have you ever wondered how much is insurance on a Dodge Charger? If not, then know that you can choose insurance from the companies that provide the cheapest policies, and you would still be paying them extra. Obviously, nobody wants to spend their hard-earned money wasted just on insurance policies. So, what’s the better option?
When you learn about pay-per-mile or pay-per-usage car insurance, you will easily understand how they work and how they can be helpful to you. Moreover, every casual driver in the US should know about pay-as-you-go insurance, even if they don’t want to use it currently.
What is Pay-As-You-Go or Pay-Per-Mile Car Insurance?
Firstly, pay-as-you-go, pay-per-mile, pay-per-usage, and pay-how-you-drive are all names of the same kind of car insurance. The basic idea is that the amount of money you pay to the insurance companies will not depend on their speculation of how you will drive in the future (using statistics and your previous driving history). Instead, they will consider your current driving habits, the distance you drive every month or six months and then charge you for it.
The main difference between basic premiums and pay-as-you-do car insurances is that they don’t charge you money depending upon their speculation of how you will drive. Rather, they will charge you money according to the miles you have crossed and your driving habits.
How Does Pay-Per-Mile Car Insurance Work?
The auto insurance companies that offer pay-per-usage car insurance need you to contact them after a regular duration (mentioned in your policy). They usually have a mobile app or use a device installed in your car to help them determine your driving habits. Since you will be using your vehicle comparatively quite less when compared to average drivers, you will pay a lot less insurance. To confirm that you drive less distance, these companies use mobile apps.
Also, if you drive safely, and by drive safe, I mean you use your car in safe driving hours when there is low traffic on the roads, you will pay less than average drivers. All these points are taken into consideration, and you can save a lot of money by relying on some smart choices.
Now, when you know what’s the crux of pay-per-mile car insurance, you can move forward to finding companies that offer pay-per-usage car insurance. Know that not every company out there offers this kind of insurance. However, some of them do offer usage discounts, and you can use them to save almost 30% of your money.
Things to Know Before Opting a Pay-Per-Mile Usage
Knowing just about pay-per-mile insurance is not enough. You need to brush up your digging skills because choosing insurance requires a lot of research. Go over the points mentioned below-
Do not pick the first company that offers you pay-per-usage auto insurance. Get multiple online quotes from different websites, and choose the right company that fulfills your needs.
Use the App/Device
It is very important to use the application or device in your car. Go through the whole policy. Follow the on-screen instructions on the app and check whether the app is actually monitoring your driving or not.
Know How the System Works
After you download and use the app, go through the entire process to see how the system works. Understand every part of the process well. Ask your insurer about all your doubts and discuss everything with them.
Ask for More Discounts
There are two circumstances, either you will get a premium policy with a usage discount, or you will get pay-per-mile insurance. Whatever you choose, make sure you look for more discounts and offers.
Best Pay-Per-Mile Car Insurance Companies
After a good research, I’ve found some companies that offer cheap pay-as-you-go insurance. Check out the following list to decide which company would be the best for you.
1. State Farm Drive Safe & Save- You will save 15%
2. Nationwide SmartRide- You will save up to 40%
3. GEICO DriveEasy- Savings depend on your residential area
4. Root- You will save up to 70% or around $900 per year
5. Metromile- You will save up to 50% or around $611
6. Esurance DriveSense- Savings depend on your residential area
7. Progressive Snapshot- You will save around $130
8. Liberty Mutual RightTrack- You will save from 5% to 30%
9. Allstate Drivewise- You will save anywhere from 10% to 25%
It would be difficult to say which company you should choose and which one of these is the best. However, you can definitely consult them and ask for more details on their pay-per-mile car insurance.