Pay-As-You-Go insurance is an auto industry-pricing model that rewards drivers with insurance discounts based on the number of miles driven. The concept of Pay-As-You-Go insurance programs is based on the simple notion that those who drive less, pay less.
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Interested in enrolling in a Pay-As-You-Go insurance program? Not sure what it is? Pay-As-You-Go insurance is based on the simple concept that those who drive less, pay less. Much like other Pay-As-You-Go programs (such as cell phones where consumers pay by the minute), these auto insurance programs let drivers pay by the mile in the form of insurance discounts.
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As financial problems and the turbulent nature of the economy sit at the forefront of peoples' minds, many are looking to cut back on any dollar-devouring superfluities - inflated auto insurance premiums among them. A national survey by National General Insurance explored respondents' planned driving habits for the following year, and found that 30 percent of drivers surveyed planned to drive less. This finding coincides with a national trend as noted by the Federal Highway Administration, citing that within the past 13 months, Americans have traveled 112 billion fewer miles.
Planning to drive less? According to a national driving survey by National General Insurance, approximately 30 percent of participants reported they plan on driving less in the following 12 months.
The survey, which polled over 5,000 licensed Americans, only further confirms what industry experts have been predicting as part of the 2009 driving forecast: less is more. According to the Federal Highway Administration, within the past 13 months, Americans have traveled upward of 112 billion fewer miles.
California's state government would save $54 million annually based on 2006 data and $60 million based on 2020 projections if they implemented pay-as-you-drive insurance programs.
-Brookings Institute Learn More
The National General Insurance Low-Mileage Discount helps drivers save big bucks by rewarding those who drive less with substantial insurance discounts - up to 54 percent! Learn More
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
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