Driving Frequency Drops: People are Driving Less
According to the Federal Highway Administration, within the past 13 months, Americans have traveled 112 billion fewer miles
Between the economy, the green movement and drivers looking to curtail unnecessary driving habits, the driving forecast for 2009 shows a decline in the number of miles driven.
This drop-off was first spotted over a year ago when gas prices rose to staggering new heights and drivers began cutting back to help save money. Now, even though gas prices have dropped, many Americans are continuing to drive less and adopting a new driving lifestyle.
One way drivers can help make this change a permanent lifestyle choice is by enrolling in a Pay-As-You-Go insurance program. Pay-As-You-Go insurance programs are based on the simple concept that those who drive less, pay less.
One insurer who offers a Pay-As-You-Go insurance program is National General Insurance, which offers it in the form of its Low-Mileage Discount. This opt-in program allows eligible OnStar subscribers who drive less than 15,000 miles annually to receive substantial insurance discounts (up to 54 percent) * based on the number of miles driven. Hence, the less you drive, the more you save.
Through OnStar technology the Low-Mileage Discount automatically reports only miles driven to National General Insurance, unlike other insurers who may use more invasive technologies to record mileage and additional information. Using state-of-the-art OnStar telematics technology, mileage is automatically reported to National General Insurance and is the only factor used in determining the Low-Mileage Discount insurance discount. Customers who drive more than 15,000 miles per year are not penalized by National General Insurance's Pay-As-You-Go insurance - all OnStar customers still receive an insurance discount* simply for having an active OnStar subscription, even if they are not eligible for the Low-Mileage Discount.
As more consumers are driving less, enrolling in a Pay-As-You-Go insurance program helps drivers willingly adopt a new kind of driving lifestyle where they are encouraged to drive less and rewarded with lower auto insurance premiums. For drivers who are already seeing a decline in their driving habits, Pay-As-You-Go insurance programs are a great way to further cut down on transportation costs and receive insurance discounts on their auto insurance.
It would take an 81-cent-per-gallon increase in the gas tax to achieve the 6.5 percent reduction in miles driven that pay-as-you-drive insurance programs would achieve. -Brookings Institute Learn More
If the state of California implemented a pay-as-you-drive insurance program, it would result in an eight-percent decrease in driving from light-duty vehicles. -Brookings Institute Learn More
Nearly two-thirds of Californian households would receive an insurance discount under pay-as-you-drive insurance with an average savings of $276 per vehicle per year.
-Environmental Defense Fund Learn More
Drive Less, Save More!
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