Information On Pay As You Drive Insurance

By Author: Danny Aaron
Total Articles: 67
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There are insurance companies that offer car insurance on a pay as you drive basis. Many people are confused about how pay as you drive insurance works, although it is a really simple and innovative idea.

What happens is that a standard insurance premium is calculated based on the regular deciding factors. These are your age, your driving history, the type of car you drive and your address. This amount will be fixed every month, and the rest you will be charged on depending on how far you travel. The fewer kilometers you travel, the less you will have to pay. The insurance company calculates how far you drive by the use of a tracking device which has been installed in your vehicle. This tracker doubles up as a security measure, which helps lower the standard premium. This way the insurance company has the peace of mind in knowing that should the car get stolen the tracker will be able to find it. The premium is then based on a cents per kilometer rate according to the data that you have given for the fixed amount.

It can be trying to determine whether pay as you drive insurance is the right choice for you or ...
... not. Because they will only start charging you after a few hundred kilometers, you will only pay if you drive over the specified amount. If you do not travel too much during the month, this could be a good deal for you. Driving more conservatively will save you money, not only on your premium but on petrol and car maintenance costs too.

A lot of companies who pay for their employees' driving costs will favor pay as you drive insurance. This is because it is an easy way for them to keep track of where their employees are traveling. This is especially the case for sales representatives and the like. The benefit of this type of insurance is that it does not matter whether you are using your vehicle for business or personal needs, the premium is the same. Whereas some other insurance companies will charge a higher premium for insuring a car that will be used for business purposes. Some parents who are paying for their children's insurance will also like to use pay as you drive insurance, as they are still able to monitor where their children are traveling.

Some people may find it unsettling not to have a concise idea of exactly how much their premium is going to cost every month. Luckily, it is not as disconcerting as one would think, as most of the time drivers usually have a good idea of how far they travel each month. If you have a routine of traveling to work and back, and out and about on the weekends, you can usually deduce how far you will travel in a month. The insurance company will help you with this estimate. The lovely thing about this insurance is that you will be able to track your mileage traveled online. This information is password protected and helps you to keep a handle on how far you are traveling.
Danny Aaron manages Hollard Pay As You Drive's site http://www.payasyoudrive.co.za where you can obtain vehicle insurance quotes and other information on auto insurance.