What is pay-per-kilometer auto insurance and how it can help drivers pay cheaper premiums
For more information and free auto insurance quotes, visit https://compare-autoinsurance.org/why-drivers-should-get-pay-per-mile-car-insurance/
Drivers who no longer use their vehicle as much as before can save money by purchasing an auto insurance policy. Paying for a full coverage auto insurance policy doesn’t make sense for these drivers. However, as required by law, removing auto insurance from their expenses altogether is not an option for these drivers. Using telematics technology, pay-per-kilometer insurance helps policyholders and car owners solve their spending problems by introducing an option that allows them to pay their insurance rates based on the use of their car. .
Before purchasing pay-per-kilometer insurance, drivers should consider the following:
- How rates are determined. Pay-per-mile insurance only bills policyholders for the miles they have traveled. Many of them are already saving 25% to 40% on their auto insurance premiums. Usually, drivers who drive less than 500 miles per month should consider purchasing this type of insurance.
- It is not a new concept. In the mid-1980s, the
National Women’s Organizationfiled a class action lawsuit against the auto insurance industry, alleging discrimination. They claimed that auto insurance providers charge more for policies covering female drivers, even though statically women have fewer accidents. Turns out the reason isn’t that women are naturally safer behind the wheel than their male counterparts. The reason is that women drive less.
- It’s a win-win situation. Policyholders who drive their cars less than 2,000 miles per year can get incredibly cheap policies and the insurance company can still make a profit. It also benefits insurance companies, as pay-per-kilometer auto insurance would allow those who drive less not to be forced to “maximize” their policies by using their cars more, resulting in more accidents. which will incur costs for the company. Of course, there is always the issue of fraud. However, insurance companies have solutions for this. Some companies ask their customers to send photos of their odometer settings from time to time.
- It’s a green idea. Pay-per-kilometer insurance can encourage people to drive less, save resources and produce cleaner air.
For more information, money saving tips and free auto insurance quotes, visit https://compare-autoinsurance.org/
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