Drive Less, Save More: Pay As You Go Auto Insurance

If Cash for Clunkers is any indication, Americans are always looking to save money when it comes to their automobiles. When you think about, a car is likely the most expensive purchase one will make besides of course a home. The cost of owning a car is more than just the sticker price. Gasoline, maintenance, repairs and registration are all costly but auto insurance is the single most expensive component of maintaining a vehicle.

Interest is brewing over new pay as you go auto insurance programs which reward drivers that drive less with lower auto insurance rates. The insurance premiums are based on the actual amount of miles that you drive over a certain period of time. Pay as you go auto insurance has great benefits. You can save money on insuring a vehicle that is rarely driven such as a secondary family car. Or if you use public transportation more often than your car, this could be a good option for saving money.

Environmentalists love the fact that pay as you go auto insurance encourages driving less. Taking more cars off the road reduces pollution and crowding on highways. It also decreases oil consumption.

California may be the next state to implement pay by the mile auto insurance, and changes could be come as soon as November of this year. Proposed regulations would require any policyholders under the plan to report their miles on their own, have the miles read at a smog or repair shop or have an insurance agent verify the miles on the odometer. Another proposal is to have policyholders prepay for a specific amount of miles and be able to purchase more miles as needed. To get people to try this new form of auto insurance, California insurance commissioner Steve Poizner advocates discounts for new customers that sign up for the plan. "By empowering consumers to take charge of their insurance bill, we may see fewer cars on the road, which means cleaner air, safer streets and lower premiums," states Poizner. Could pay as you go auto insurance be right for you? No matter which insurance plan best fits your personal needs you can always save money by comparing quotes using 2Insure4less.com.