You don’t drive a lot. If this describes you, you may wonder what your options are when it comes to car insurance. The good news is that you might be able to take advantage of limited mileage car insurance.
How Limited Mileage Car Insurance
Limited mileage car insurance, or pay as you go coverage, is a system that determines your premiums based on how many miles you drive. If you’re interested in limited mileage car insurance, find a company that offers this type of coverage. This company will provide you with a tracking device that you plug into your car. Once the installation is complete, your insurance company will log how many miles you log in your car. They will then use this information to determine the amount of your premium.
The Benefits of Limited Mileage Car Insurance
The obvious benefit is that infrequent drivers will only be required to pay for the car insurance they actually use. If you’re a city dweller who has a car gathering dust in a garage, does it really make sense to pay hundreds of dollars in premiums if you only use your vehicle for occasional out-of-town excursions? Another benefit to this type of coverage is that it’s environmentally friendly. By utilizing limited mileage car insurance, you’re reducing your carbon footprint. That should make Al Gore smile a little.
The Drawbacks of Limited Mileage Car Insurance
Despite the obvious benefits, there are some people that see some drawbacks to this type of coverage. The one that is cited often is the invasion of privacy that some say that the required tracking device creates. However, this criticism can be answered by talking about what the tracking device can and can’t do. The only purpose of the tracker is to tell your insurance company how many miles you drive in your car. It can’t tell your insurance company your exact whereabouts. For example, your agent won’t know what you were doing last Saturday night. That is, unless you tell her.
Asking Yourself Questions
Before starting the research process into limited mileage car insurance, you need to ask yourself a few questions. These questions include:
• Frequency of auto use: How often do you use your automobile? Where do you live? Do you have access to a decent public transportation system?
• Average Premiums: What are the average premiums in your state of residence? If you live in New York, which has the highest average premiums in the nation, driving infrequently can cost a lot more than being in the same situation in Wisconsin, which boasts some of the lowest car insurance rates in the United States.
As long as you do your research and consider both the benefits and drawbacks of limited mileage car insurance, you’ll have a better chance of getting the right policy that meets your unique criteria.