Is pay-as-you-go auto insurance cheaper?
The Perks and Pains of Pay-as-you-go
When it comes to buying for the year or getting charged just for what you use, is pay-as-you-go auto insurance cheaper?
It depends, says a story on DailyFinance.com. One insurance company says consumers can save $150 a year with pay-as-you-go. But the worthiness of this option depends on whether you want someone to track your mileage and if you can make sure you don't go above what you paid for.
It's common for insurance companies to put a device in a person's car to monitor their driving habits and determine eligibility, something not everyone is keen on. Also, pay-as-you-go possibly means driving less and scrutinizing mileage, something many drivers can't be bothered to do.
Some people commenting on the Daily Finance story say pay-as-you-go rates should be determined by driving history and not force drivers to get monitored by a tracking device.
Have you tried this kind of insurance? Is pay-as-you-go auto insurance cheaper? How do you feel about the privacy issues?
"The pay-as-you-go trend has already spread to a wide variety of consumer services ranging from wireless to software. Now it looks like auto insurance might be the next industry to jump on the bandwagon.The idea behind it is simple: People should only pay for the insurance coverage that they actually use. In other words, drivers who drive less would pay less for insurance..."
