Save Money on Auto Insurance with Pay as You Go Car Insurance

What is Pay As You Go Car Insurance?
Pay as you go car insurance is a new type of auto insurance policy that varies the premium payments depending on how far your car is driven. Specifically, insurance on vehicles is discounted depending on how many fewer miles the car is driven than the "normal" level defined by the car insurance provider. This can result in huge savings for some people who do not use their cars much.

Who Should Consider Purchasing Pay As You Go Car Insurance?
The most obvious answer to this is that people who do not drive their cars many miles should consider purchasing pay as you go car insurance. This is because these vehicles are not on the road much, and you shouldn't be paying full premiums to insure them if they are hardly driven at all. If your family has more than one vehicle and tends to use one of them a lot more than others, you could consider purchasing normal insurance for the vehicle driven a lot, and using a pay as you go plan on the secondary vehicle.

How do you Purchase Pay As You Go Car Insurance?
There are a few auto insurance companies that offer pay as you go car insurance, so shop around to find out if your current company offers it. However, do be aware that some companies only offer pay as you go car insurance in some states, not all of them. This is likely to expand in future years, so if your state is not included yet, check back every time you renew your policy.

Privacy Concerns with Pay As You Go Car Insurance
One major concern with pay as you go car insurance policies is that they require you to install GPS tracking devices that will monitor how many miles your car is driven. Some people worry about the potential privacy infractions that will result out of their insurance company being able to know exactly where they are and how long they are there. If this idea makes you cringe, pay as you go car insurance probably isn't right for you.

Other Cautions with Pay As You Go Car Insurance
Similar to the charges you get hit with if you drive your car more miles than are on your lease, pay as you go car insurance may cost you if you exceed the threshold limit your insurance provider has put on the service. If you are getting a discount for driving less than 5000 miles per year, find out what the penalty is if you happen to drive more than 5000 miles that year. Also, ask about the mileage tracking device, and specifically, whether it is provided or if you have to purchase and maintain it.