Insurance companies are now starting to offer pay as you go car insurance, but is this service really right for you? Pay as you go insurance involves the insurance company placing a tracking device in your car to track the miles and location of the vehicle; this could involve On Star programs. You only have to pay for miles driven, however is this really a convenient choice for you? This kind of insurance has its advantages and disadvantages. This article will take a look at 4 pros and 4 cons to pay as you go car insurance.
1. Less expensive than traditional insurance
If you do not drive much or have a secondary car that you do not use for anything else besides driving into town, then pay as you go car insurance may be for you. Why would you pay thousands of dollars to insure a car you barely ever use?
2. Have multiple vehicles?
Having many different cars can be very costly to insure all of them; pay as you go insurance is a great alternative for the vehicles that are not used as much. If you are running low on money you can save by not driving the vehicle that is currently on the pay as you go program.
3. Cheap for low mileage drivers
Do you only drive into town a couple times a week and work from home? I do; this insurance is great for someone who works from home or does not get out much. Don’t pay too much for your car insurance if you do not drive often.
4. Own an Antique Vehicle?
Many of us own antique vehicles that are used merely for show and occasionally driven few miles into town. Pay as you go insurance can be a great way to cover these cars for minimal cost.
1. Technology needed to set up pay as you go insurance
Seem like your being nickel and dimed everywhere you go? Well pay as you go insurance can be no different. Some companies actually make you pay for the technology needed to track the mileage in your car that transmits to them! This cost however can be a onetime cost, but is it really worth not paying a low premium on your vehicle?
2. Traditional insurance companies offer discounts for low miles driven
Traditional insurance companies will often give customers a discount for low miles driven in a year which do not require any fancy technology to track you.
3. You can’t get it everywhere
Currently only a few insurance companies offer the pay as you go program for car insurance, this makes it very inconvenient to even consider it until it goes mainstream. Until pay as you go insurance is available everywhere I would not recommend it since prices will not come down until then, basic supply and demand.
4. Invasion of Privacy
Some people may not like the insurance company having the ability to track where you have been and how many miles you have driven on any day. The transmitters used can let the insurance companies know how many miles driven in one day and even tell them where.
www.americanconsumernews.com – Pay as You Go Car Insurance, is it Right for You?