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Get Ready for Pay-As-You-Go Auto Insurance

Rewarding customers for good driving isn't a new concept to the auto insurance industry, but offering them pay-as-you-go insurance is. Right now only a handful of states are offering this revolutionary insurance concept, but as the success of such policies is proven, more states will likely jump in.

How Does It Work?
Pay-as-you-go auto insurance policies allow insurers to offer rates based on how far you drive and your driving habits, in addition to your driving record and credit history. The catch? You have to allow the insurance company to place a device on your car that monitors your mileage, how frequently the brakes are used, what time of day driving is done and how quickly your car stops.

And just how much money can this new policy save you? If you practice safe driving habits, Progressive says your rates can drop by as much as sixty percent. In an economy where we have to find some way to counter rising gas costs, sixty percent could be a godsend.

The Bad News
Unfortunately, pay-as-you-go insurance isn't as easy to get as traditional coverage has been lately. Don't expect to be able to hop onto Progressive.com's online auto insurance quote pages to get signed up for it.

What you can do, however, is see if this type of coverage is available in your area. If it is, see what companies offer it, then visit comparison sites like Star Reviews to see which of these companies offer the best rates and the best service. From there you can move forward into actually obtaining a pay-as-you-go policy.

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