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.
The total U.S. CO2 emissions would decrease by two percent and oil consumption by four percent if all motorists had pay-as-you-drive insurance.
Two out of three U.S. households would receive an average insurance discount of $270 per car if all motorists had pay-as-you-drive insurance. -Brookings Institute Learn More
By enrolling in a pay-as-you-drive auto insurance program like the Low-Mileage Discount, your OnStar subscription might practically pay for itself. Learn More
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