While not a new idea, pay-as-you-drive auto insurance seems to be gaining traction in some areas. The thinking here is that drivers only get charged for the amount of time they spend behind the wheel.
Sounds great, right? Well, maybe not. Cars with this are equipped with a monitor that not only records your mileage, but also monitors speed and driving habits. So if you are prone to speeding, accelerating hard, braking hard, drive in unsafe areas, drive a lot during accident-prone times such as the wee hours at night and rush hour; it's all recorded--and is reported back to your insuring company. Now if you think that your questionable driving habits won't be held against you, I've got some beautiful beachfront property in Galveston to sell you.
ateixeira says:
11:21 AM, 09/22/08
At first I was intrigued because I drive 2 cars, and by splitting the mileage I drove each one less.
So I could pay for just 6000 miles/year on the car I drive less often, for instance.
There just *had* to be a catch!
firstwagon says:
05:38 PM, 09/22/08
I'll bet it would be used more for raising the rates of "high risk drivers" then it would be to lower the rates of low risk drivers.
No drivers would save much but profits would go up for the insurance companies.
estreka says:
12:02 PM, 09/28/08
My insurance company asks me how many miles I drive in a given year. The number I give them determines my rates.