Pay as you drive insurance is an innovative way to insure your vehicle because it prorates the costs based on how much, how, where and when you drive. This, in effect, encourages less driving, not to mention safer driving. Also known as usage based insurance, it is one of your car insurance options especially if your driving time is limited. Depending on your state of residence, getting auto insurance in the form of PAYD can be done online. The process will be completed over the phone to finalize details, but you can begin it online.
Select an Insurer
Choose either your current insurer or a competitor and search their website for either PAYD, pay as you drive or usage based insurance. Different companies have different names. For instance, Progressive offers MyRate Insurance which is basically usage based. You may have to do a more general search to determine what your insurer calls it, but you will find an answer.
Start the Process
To determine if usage based insurance is right for you the company will ask you for your state of residence and a few questions regarding your driving habits. Not every state offers PAYD, but if yours does, you may be in luck. If your answers fall into an acceptable range, you are eligible to receive a quote. The kinds of questions you can expect involve the number of miles you drive per day, if you drive after midnight, and if you consider yourself a defensive driver. Of course, there is more to it than that, but from there you’ll request a quote.
Companies offering usage based insurance usually fit customers’ cars with either a GPS device or something else that monitors mileage and times of travel. It is not simply an honor based system, but the savings could be substantial.
You can apply for pay as you drive insurance online as easily as you can other types of insurance–provided the company offers it in your state. If you are a safe, defensive driver who drives infrequently, it may be just the insurance for you.