Comparing Premiums Readily 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 the end of the year, 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 price break.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 asking you how much you have driven from day to day, or primarily by looking at how long you've had the car and how much you've driven. Another method of calculation is more accurate and delivers more to you. What the insurance companies are planningis 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). This works in effect to turn your auto into a sort of taxicab; they put in a not very conspicuous meter on your car that will keep track of the miles driven each 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. Since the trial worked they plan is to offer this method of insurance throughout 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.
When you sign up for a PAYD car insurance policy, the agency sends an installer to place the wireless device on your vehicle. 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.
On the other hand they find out that you constantly drive near the top of the speed limit, and you drive a lot in the middle of the night when they know that the statistics say most accidents occur, you'll pay more - about ten percent. 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 accident risk or not. It will even know if you are speeding one morning, and really stepped on the gas for about 5 seconds to quickly get to 40 mph in just 3 seconds - and boy, will you pay. Find the lowest auto insurance rates and compare:cheap car insurance right now.
You'll soon discover that many auto 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 lot. It is to help everyone to keep an eye on the way they drive, and cut out wasteful miles. And parents can get a clue as to what their children's driving habits are like, as well.
Comparing Premiums Readily For Car Insurance Companies
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