Pay As You Go Car Insurance?
What is pay as you go car insurance you ask? Well it is quite similar to the pay as
you go with cellular phones. It really is as the name implies it is car insurance for your vehicle for when you are using your car. In these times we all look for every way possible to try to save money and cut corners where we can. Many of us use our vehicle all year round and don’t really think of using a pay as you go service. Yet there are many situations that would warrant someone only needing car insurance for part of a fiscal year. This is where the pay as you go car insurance comes in handy as it can save some people a lot of money.
There are many people that pay as you go car insurance can assist. How about the person who works out of town and is only home on the weekends. They don’t use their car all week yet they have to have it insured full time in order to drive it when they are home on the weekends. With pay as you go insurance they will save lots as they will only have to pay for time used. Take the case of young adults who normally because of their age would be charged a huge amount on insurance. By using the pay as you go feature they will save money as well. Another nice thing about the pay as you go car insurance is that you are able to pay your premiums every month. This makes it much more affordable for many people instead of having to pay once a year, which is difficult for most to afford.
So what is pay as you go insurance and how does it work? It works quite simply and is very convenient as well. All that is done is that a tracking box is installed in your vehicle. This tracking box will record all details such as mileage, distance travelled etc and then it transmits all the information to your insurance company. Be aware there are also some tracking boxes that through a GPS like system can also track your bad driving such as hard breaking, speeding, heavy acceleration and others. They will track this information as well and pass it on to the insurance company.
Your insurance company will then take the tracking information that was sent to them and send you out a bill for the amount of usage they have calculated. You then pay that amount for that month and the following month they will do the same. It’s a wonderful way to cut costs down as well as enable individuals to drive when they want to and need to, when maybe before they weren’t able to. It’s also good for the insurance companies to offer pay as you go car insurance as having some premiums in is better than none at all. It’s also a way to avoid having people, who can’t afford the full insurance amount, drive uninsured.