Pay as you go car insurance is a very customized approach to car insurance that allows you to tailor your coverage to exactly what you need. Not for a preset standard period of time.

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With this type of coverage your vehicle will have a special tracking device that counts the miles you drive. Your driving data, which may also include some of your habits like sudden stops, is sent to the insurer who adjusts your rate for usage. You can save between 25% and 50% on a one year policy.

Pay as You Go Car Insurance Defined

Pay as you go car insurance is simply car insurance that reflects your actual usage of your vehicle. In the traditional system of car insurance, two people with similar driving records and the same car would pay the same premium regardless of the number of miles put on their car. With pay as you go car insurance someone who uses their car for less than 10,000 miles annually can save substantial amounts of money over someone who puts 30,000 miles per year on their car.

One of the drawbacks of the system is complaints about the tracking system being intrusive on the privacy of drivers. Because it has the capacity to not only track your miles driven, but also to tally your bad driving habits, it creates some distrust in those contemplating using the system. You can also be penalized in price if you happen to take an emergency trip and exceed the number of miles you were supposed to put on the car.

In addition to saving money for the number of miles you drive annually, the pay as you go car insurance system gives you savings for a good driving record, the time of day you most often drive and for older drivers.

Those Who Benefit From Pay as You Go Car Insurance

There are some people in ideal situations to benefit from this type of insurance coverage:

• New drivers who often have limited access to a vehicle because pay as you go car insurance allows them to gain driving experience without incurring extremely high car insurance rates.
• Those with more than one vehicle. Pay as you go car insurance can provide a big break on car insurance costs. Typically in multiple vehicle households, one vehicle is used significantly more than others. Therefore you can save money by putting a pay as you go policy on only the lesser used vehicles.
• Retired persons who want to keep their cars, but simply do not use it as much as when they were commuting daily.
• Those who live close to their workplace.
• Antique car owners who drive their vehicles infrequently.

The pay as you go option is an environmentally friendly option, as well as a money-saving one. Drivers are more likely to walk, car pool, take public transportation and make fewer trips in the car if they know the number of miles they drive will affect the car insurance premium they pay. This results in less pollution, fewer traffic accidents and less traffic.

While not every state has the pay as you go car insurance option available, there are 34 states currently offering it in one form or another. Even if your state does not offer it right now, it is likely being considered and will become available before long.

Shop Around Now for Pay as You Go Car Insurance

If you are in the market for pay as you go car insurance, the best way to get it is to shop around and compare the prices you get from different companies. You can do so in almost no time by using the free online quote tool to get those prices. You begin by putting your zip code into the quote tool, answering the questions you are asked and let the tool do the work for you.

Two important reminders:

• Once you get the pay as you go car insurance rates, you should carefully compare the quotes for a variety of factors, like you would for regular car insurance. Make sure that the quotes are all based on the same duration, amount of miles and coverage limits.
• Watch out for exclusions. Check out a company’s insurance rating to learn how financially stable they are before doing business with them. Look into their customer complaint records too in order to get an idea of how they treat their customers.

Get started with your online car insurance quotes for pay as you go car insurance by clicking a quote tool now!