Comparing Efficiently For Car Insurance Companies
Having a hard time understanding the ins and outs of how the insurance companies decide on the price of your car insurance policy? Here’s a new piece of insight. If at year end, your insurer sees that you haven’t driven very much over the course of the year, they feel you don’t really need to pay them the full price anymore and get a rate cut.
As a matter of fact this has been an insurer mainstay for a long time – the low mileage bonus that they can arrive at either by inquiring of you how much you need to drive each day, or primarily by looking at how long you’ve had the car and how much you’ve driven. But that bonus is crumbs your way compared to what they are thinking of now. What the insurance companies are planning is that they’re going to calculate your premium completely on a per-mile basis.
A usage based car insurance policy is more forgiving if you drive less. And in some places, it goes by the name of PAYD (pay as you drive). What they do is, they turn your car into some kind of a taxicab; they put in a not very conspicuous meter on your auto that’s supposed to keep count of exactly how many miles you drive in a year.
Companies like Texas’ Progressive for instance, have been offering Texans a car insurance policy based on the meter called MyRate, for more than ten years now. Now that the trial has worked out, they’re offering it all over the country over this year. Actually, a clutch of states around the South like Alabama, Georgia and Louisiana, and several up North like Michigan, Maryland Oregon already have this option.
How this works is that when you sign up, a PAYD installer places a device in you car to records information. Usually, it finds its home on the underside of the steering column on your car, and it collects more than just how many miles you drive. Pretty often, it records information about your driving style, and how often you use your car. The device uses a wireless connection to the company – where they put your driving information together with other traditional factors that affect your insurance, what your age is, your sex and your driving record, to set up a custom car insurance policy just for you. If you hardly use your car, you could actually shave half off your traditional insurance premium. Get better rates by car insurance agencies premiums today.
If they find out that you are driving at top speed and drive a lot at night when they know that the statistics say most accidents occur, you’ll pay more – about 10% more. One imagines that the wireless connection will also tell them what parts you’re driving in, so that they can tell if your chosen area is high risk or low risk. It will even know if you are in a hurry one morning, and really stepped on the gas for about 5 seconds to quickly get to 40 mph in just 3 seconds – and man, will you pay. Find the lowest auto insurance rates and compare: cheap car insurance today.
Most car insurance policy majors are testing out a version of the PAYD scheme now with volunteers and their own proprietary devices – Allstate, State Farm, The Hartford – the entire shooting match. It is to help everyone to keep a perspective on their driving behavior, and cut out wasteful miles. And parents can get an idea as to what their children’s driving habits are like, as well.
