5 Types of People who Could Benefit from Pay-as-you-go Insurance

If you find that you can’t afford the increasingly hefty price for auto insurance, you may be told that you simply can’t afford to drive. Insurance might be legally necessary and the best way to stop the possibility of a financial nightmare should you be involved in a serious car accident, but that doesn’t mean you should go broke trying to get it. More and more car insurance companies are developing pay-as-you-go premiums – usage-based plans that are easy to qualify for if you don’t drive as much as the average commuter, and if you follow a few regulations.

When you request pay-as-you-go coverage, your insurance company may fit a device to your car to monitor how far you go and at which time of day. You have to be willing to provide them with that information. It could be a big decision, but for certain people, it could also be a perfect fit.

Take the Walk Tour

1. College Students

It can be hard for young people to find affordable insurance. But if you’re living on a college campus, chances are that you’ve either forgone your car for walking, cycling, and public transportation, or you’re using it very sparingly. For the occasional weekend trip or drive to get groceries, usage-based auto insurance can be a perfect solution.

2. Stay-at-Home Parents or Workers

If the main use of your car is to take the kids to school a couple blocks away, you can still qualify for pay-as-you-go. Likewise, if you run your business from your home or have no reason to commute to work every day, you are probably a good candidate. Many people think that pay-as-you-go means you can’t drive every day, when really the distance and the time of day are what matters.

3. Environmentalists

If you’re serious about reducing your carbon footprint but it’s impractical to give up your car entirely, you might want to consider pay-as-you-go insurance. It could be the optimum way to experiment with driving less, both to save money and to contribute to a revolution in insurance premiums that has the chance to cut down pollution and dependence on oil by inspiring others to drive less too.

4. Safe Drivers

The devices that your insurance company use to measure how much you drive and when can also be used to measure how sharp you are on turns and how often you brake hard. Your driving record will also help you qualify – if you’ve never had an accident, you will be a perfect candidate to save money.

5. People Facing Financial Hardship

It might not be financially possible to drive little enough to qualify for pay-as-you-go insurance. But if you’re really struggling to find insurance you can afford, then adjusting your driving habits might be your best chance. Customers suffering after lay-offs or other financial difficulties might find that cutting costs on insurance helps them save for the future.

Many industries are adopting pay-as-you-go policies these days – from mobile phones to computers, and everything in between. With the economy still suffering, and many people’s wallets along with it, it is important to find which deals are out there to help you be a responsible driver.

Jane Harrison writes articles often for insurances sites. A temporary car insurance.co allows you to purchase pay as you go car insurance for occasional driving.

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