Many people don’t like to make big upfront payments in order to get their auto insurance coverage. Other people don’t like paying for car insurance coverage during times in which they are not even driving their vehicle. In a lot of cases, it doesn’t seem very fair that you have to pay for insurance when you aren’t even going to be driving your car.
However, many times, people cannot afford to simply cancel their auto insurance coverage because they will eventually end up driving again in the future. There is a solution available to some people that want to get their money’s worth on insurance for their car: getting pay as you go car insurance. However, don’t think that you should immediately cancel your existing insurance coverage just because you heard about paying as you go options.
Can Anybody Buy Pay As You Go Car Insurance?
Unfortunately, not everybody will be able to find pay as you go auto insurance offers that are available in their area. In many places, it is very tough to find an insurer that will offer this type of coverage. It is probably more difficult to find a policy that let’s drivers pay as they travel (or “go”) than it is to find a no deposit policy or other types of temporary coverage. One major company that offers this type of coverage is Progressive – you can get a quote from them by using the top quote section of this page.
Currently, if you do a search, you will find that GMAC Insurance company currently offers this type of coverage to people that are interested. There are also several niche providers available throughout Europe (pay as you go car insurance UK is more common than the U.S.). In order to check if your existing insurer is considering this type of policy, give them a call and ask. There are many insurers that are in the process of experimenting with this type of coverage due to the fact that it is becoming more popular among drivers.
What Exactly is “Pay As You Go” Coverage?
In this type of car insurance policy, you basically are allowing auto insurers to track the number of miles that you drive. They will (most of the time) plant a tracker inside of your car so that they can record the precise distance that you have traveled. All of the information that is collected will be sent directly to the insurer so that they know how much they should charge you. The reason that some people really dislike this type of coverage is because it gives up a lot of information to your insurer and minimizes your personal privacy. You would obviously need to be comfortable with having your mileage tracked before you bought this type of plan.
Who is an Ideal Candidate for this type of Car Insurance?
People that like the idea of making payments as they travel would be ideal for this type of policy. The cost of a cheap pay as you go car insurance cover is going to vary depending on the company that you buy it through. Some companies may charge slightly less for this coverage, while others may charge more for convenience reasons. Most insurers presently charge a decent price for drivers that are interested in this coverage.
However, if you compare prices of this type of coverage to a long term policy that covers you for an entire year, you end up getting a better deal by avoiding the “pay as you go.” For some people that are on a tight budget, though, this may be the perfect type of plan to get.