Pay-by-the-mile auto insurance sounds good to me

I don’t drive much, and being a frugal guy, I am always looking for ways to save money. When shopping for auto insurance, I always wished I could find a plan that rewarded me for not driving much. Think about it: All else being equal, a person who drives 1,000 miles per year is less likely to get into a car accident than someone who drives 15,000 miles per year. This business model makes sense, but is nonexistent.

Auto insurance is based on risk. The riskier a driver is, the more they pay. Insurance companies look at a myriad of demographic factors such as age, marital status, and place of residence. They also consider credit reports, driving history, and the type of car you drive. If they are going to consider all these facts, then why not take the amount of miles driven into account? Again, fewer miles would mean fewer accidents and fewer claims. » read more