Pay by miles: the fairest form of car insurance
Pay by miles: the fairest form of car insurance. One of the factors that insurers take into account when determining the price of an auto insurance premium is the miles you drive per year. According to statistics, a typical motorist drives about 13,500 miles annually. This is the average that insurers use to determine the value of the typical premium. In the world of car insurance, there is a logical rule, “the more miles, the more risk of an accident”. However, it is logical that there are people who travel more miles and others who make much fewer trips. The latter find it unfair that they take into account some miles that they do not cover.
If you are among the people who barely move the car. If you travel 7,000 miles or less per year, you should know that there is insurance whose payment depends on the exact number of miles that one travels. “You pay by the miles you travel.” If you travel many, you pay more, if you have the car parked for a long time and you barely move it, you pay less.
For those who take advantage of this program, the insurance companies install a device in the car, a kind of geolocator that counts the route of the car. Thereafter, each month, the bill will depend on the miles you have done.
Although each company has its own mileage payment programs, they generally follow the same rule. The invoice is divided into two parts. The first is fixed and includes a minimum payment, and the second is variable, depending on the miles traveled.
With this type of “pay per mile” insurance, those who drive a few miles could save up to 50% on their insurance premium bill.
If you are interested, call Univista Insurance where you can purchase the cheapest insurance in Florida. Pay by miles: the fairest form of car insurance.