How would you feel if you have to pay your auto insurance rates according to the miles you drive? You would jump with joy right! It seems a great idea if you pay by the mile but it also seems this great idea has some difficulty to gain traction. There is a variety of reasons for that namely regulations, technology and marketing. It has however stalled in one state and that is Texas.
What benefits does pay as you go auto insurance give:
The benefits of pay as you go auto insurance can be quite many. The very first thing is that you can save a lot. Auto insurance of course doesn’t come cheap and this seems a great idea to save on.
With this type of auto insurance, people would start to lessen the miles they drive. This would be great for our environment as well. By reducing the dependence on foreign oil, you can save the money. By reducing the expenses on gas as well as the wear and tear on the vehicles, you save a lot.
In 2008, car insurance by the mile was offered by a company located in Dallas, TX. Known as the Mile Meter, insurance as little as $0.02 per mile was offered by the company.
How does this Mile Meter works? It’s very simple. The applicants can get an online quote and once it is approved, they can buy 1 to 6000 miles every 6 months. If the user’s miles get over, they can always excess miles once again. If some miles are left, it gets credited to the next purchase of miles.
Pay-Per-Mile auto insurance is what most motorists are waiting for. If they want now, it seems they have to shift to Texas and for other states, they could just wait for some times.
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