Consumers looking to lower their car insurance payments might not be able to reduce their costs by merely driving less. That’s because car insurance regulators have declined to mandate pay-as-you-drive programs for insurance companies, according to the New York Times. Originally developed in order to reduce emissions, pay-as-you-drive insurance programs reward those who drive fewer miles with cheaper car insurance. Although car insurance coverage would remain the same for drivers, costs would decrease for those who decided to carpool or use alternate transportation. And with this incentive, environmental lobbyists hoped that drivers would be on the road less.
However, just because insurance regulators have declined to force insurance companies to adopt this type of car insurance policy doesn’t mean you can’t lower your car insurance costs by limiting the number of hours you spend behind the wheel. Some car insurance companies, like Progressive, have opted to offer pay-as-you-drive programs voluntarily. The programs monitor mileage through a patented device that is secured under the steering wheel. Drivers can manage their mobility and view their mileage statistics online, along with other carbon creating driving behaviors they may engage in.
In addition to Progressive, other insurance companies are offering this unique car insurance coverage that could save you money if you don’t drive often. However, most major insurers are not offering it for a variety of reasons. One of those reasons is the fact that Progressive’s mileage monitoring technology is patented, according to the New York Times, and insurance companies don’t want to fund a competitor by buying its technology.
But driving fewer miles can actually help you save money on your car insurance even if you’re not enrolled in this special pay-as-you-drive program. When you drive fewer miles, you’re less likely to become involved in an auto accident, and you cause less damage to your vehicle. The more accidents you are in, the more you have to pay for insurance. Additionally, being a safe driver and driving a reliable vehicle is another way to get low car insurance rates. If you opt to drive a faulty car, your risk of being in an accident goes up, and therefore so does your insurance rate. Taking care of your car and driving in a responsible manner, in addition to limiting your driving, can always help you reduce your car insurance costs. In fact, with a properly maintained car that gets little use, you’ll also save on fuel and maintenance costs, which can add up to a large chunk of your income.
When you drive fewer miles, you save more money overall on expenses related to driving and your vehicle’s upkeep – from pennies at the pump to dollars in car insurance premiums.
