New Cars Over $35,000 – Is Car Insurance More Expensive?

April 8th, 2011 Tammy Posted in Insurance Categories No Comments »

If you are planning to purchase a new car over $35,000 in value, or if you already have made the purchase, you may be wondering if your insurance rates are going to go up. Unfortunately, the answer to that question is yes. Generally, the more valuable a vehicle is, the more it will cost to insure. The good news, however, is that there are many things that you can do to lower your insurance rates. While you won’t be paying the lowest rates around, you can enjoy significantly reduced rates as you drive your new and very valuable automobile.

Before we share a few money-saving tips, however, you need to know that the cost of the coverage isn’t the only thing that matters when choosing an insurance policy. You must also be sure to pick a policy that provides you with adequate coverage in the event of an accident. If you, like most people, took out a loan for your new car, be aware that you are required by law to have full coverage insurance until the loan is paid in full. Even if you paid out of pocket for the car, you will still want to have coverage that protects your vehicle well and that keeps you from being out all of the money you spent on your new automobile.

In addition to getting adequate coverage, you will also, of course, want to be sure and find a provider that offers good customer service, accessibility, efficiency at claims handling, and generally has the customer’s best interest at heart. The best way to find out whether a particular insurance provider possesses these qualities is to talk to friends or family members who have used or who are currently using the company or to read online reviews written by past or present clients.

With that said, let’s talk about how you can save money on your auto insurance. First things first, if you haven’t already bought the car, take a minute to reconsider your decision. By choosing to purchase the automobile in a slightly older make, even just last year or the year before that’s model, you can significantly cut back on insurance costs. If you’re dead set on purchasing a specific new car, however, or if you’ve already made your purchase, there are still things that you can do to reduce automobile insurance costs, so don’t panic just yet!

Your car should not be a “dangerous” car, such as a roadster or a car with very high speeds. If it is, your insurance rates will be higher than average, on top of the already high cost of insuring a newer car. However, you can improve these rates by choosing to install safety features on your automobile. This is a good decision and can offer lower rates to owners of any type of automobile, in fact. Features such as air bags, rearview cameras, antilock brakes, and more all cut back on insurance costs and make the driving experience safer.

In addition to adding on safety features, you should also look for other discounts for which you qualify. If you added anti-theft features to your car, you should get a discount. Other things that can enable a driver to be eligible for hefty discounts include having low mileage ( a given on new cars), being a good driver – meaning not having had any accidents or speeding violations in the past six months or longer, being a good student in the case of minors, taking a defensive driving course or a driver education course, and parking in a “safe” area overnight or during working hours. Of course, in many cases, it is the driver’s responsibility to bring these discounts up to the provider, so don’t be afraid to take that first step toward getting the discounts you need and deserve.

So, when driving a brand new car with a high value, you know your insurance rates will likely be higher than you would like. If you’re proactive, however, about becoming eligible for discounts and then following through to make sure you receive them, you can end up saving a lot on automobile insurance, enabling you to better enjoy your brand new car.




How to Save On Your Auto Insurance Premiums When You Are Learning to Drive

April 7th, 2011 Tammy Posted in Insurance Categories No Comments »

If you’re a brand new driver, still in the learning process, then you’re likely worried about how much you can expect to pay for your automobile insurance premium. While it is true that insurance premiums can be quite a bit higher for inexperienced drivers, the good news is that there are things that you can do to help lower these premiums. One option, of course, for young minor drivers is to wait until they are eighteen to get their licenses. This will significantly lower automobile insurance rates. Of course, most people don’t want to wait that long and if you’re one of them, you can still start driving today without spending a fortune.

First and foremost, you need to find a good automobile insurance provider, preferably one that offers many discounts to its customers and that has special programs for minors or new drivers. Finding such a provider is easy, as long as the driver is willing to do a bit of research and to take the time to make a fully informed decision. This is the first and most important step in securing affordable automobile insurance, and time should be taken with it.

Once you have a good provider, it’s time to start figuring out which discounts you are eligible for. If you are still in school, either high school or college, and have an A or B average, you may qualify for a “good student” discount, which can actually be quite hefty. If you don’t, then start working to get those grades up right away; insurance discounts are only a report card away. You can also save money by opting to take approved driver education courses, above and beyond what is offered in the schools, or by taking a defensive driving course. Installing safety features and/or anti-theft features on your car can also help you to save money.

One of the biggest (and most expensive!) mistakes new drivers make is purchasing a brand new car. In general, the newer a car, the more it will cost to insure. So, the high insurance rates for a new car compounded with the high insurance rates for a new driver simply do not mix. Plus, you’re likely to get into an accident during your first few years of driving, and it’s best if you have a car that won’t be too much of a loss if this happens. Though it might not sound too fun, opting for an older car, at least for the first few years of driving, is a smart idea.

Finally, new drivers can take heart in the fact that, the more experience they gain, the lower their rate will be. Whenever an insurance renewal period comes up, during which the driver has had no accidents or speeding violations, the policy will be adjusted accordingly. So, you are basically awarded for the experience you gain and for your own safe driving. All it takes is a little time and effort, and those rates will be completely manageable!




Cheap Crossover Car Insurance

April 6th, 2011 Tammy Posted in Insurance Categories No Comments »

You may have heard the rumors that crossovers are unbelievably expensive to insure. While it is true that crossovers, especially if they are new, can come with a bit higher than average insurance rates, there are things that you can do to effectively lower these costs. The first and most important, of course, is to find the right provider. This is a bit harder than it sounds and will require some effort on your part. If you’re willing to put it in, however, you can find a reliable, dependable automobile insurance provider who puts your needs first and always keeps the customer’s best interest at heart.

To find a good provider, you’ll need to do more than just flip open the local phone book and start calling random companies and asking for rate quotes. Your first step should be to get in touch with the department of transportation or its equivalent in your area to ask for a list of all licensed providers in your area. If a provider is not fully licensed in the state of residence, you won’t want anything to do with it. Getting this list is only the first step, however, in a long but worthwhile process.

Once the list is in your possession, it’s your job to research each of the providers on it. Start by visiting each provider’s website, taking note of which ones do or do not offer special insurance packages for owners of crossovers. Also take the time to read online client reviews, written by past or current clients, of each company. This research should help you to whittle down the choices until the list is much more manageable. Then, and only then, should you start calling around for rate quotes. Just be sure that you aren’t just comparing price to price. Also think about the type of coverage offered, how useful the coverage is and/or how tailored it is to a crossover’s unique needs, and how you feel about the company in general. This information will help you to make an informed decision.

Before you make your final choice, you should know of some very important discounts that can help owners of crossovers to save on insurance rates. These discounts are not offered by all providers, so if you qualify for one or plan to qualify for one, you’ll want to be sure you’re going with a provider who will give you the discounts you deserve. First and foremost, almost all new crossovers come with excellent standard safety features, made even better if you choose to add on the extras. These safety features can earn you a big discount; the more features you have, the bigger the discount for which you are eligible. So, finding a provider that honors this particular discount is especially important. Fortunately, most of them do.

Other discounts that are helpful to owners of crossovers include anti-theft discounts; low mileage discounts  – ideal for those who have purchased a new or barely used crossover; and good driver discounts for drivers who have not had an accident or a speeding violation within a set time as determined by the provider. Whenever you don’t qualify for a discount, try and find a way to do so. If you are not a “good driver” for example, you can still qualify for this discount by opting to take a driver education course, such as a defensive driving course. Educate yourself on all of your options and then do whatever work you have to in order to save. Your wallet will thank you big time in the long run.

Owning a crossover doesn’t have to cost a fortune, but it’s up to you to do the work it takes to find the right provider and then to go out and find discounts for which you qualify or for which you can qualify. If you’re willing to do this, then you should enjoy owning a crossover and, unlike many drivers, will be able to enjoy all of its great benefits instead of just griping over the cost of insurance. After all, crossovers are great, safe cars, capable of taking you and your family anywhere, and you should be able to own one without stressing over insurance costs.




Honda Civic GX Car Insurance

April 5th, 2011 Tammy Posted in Insurance Categories No Comments »

The Honda Civic GX is a new, natural gas vehicle that is a pleasure to own and to drive. Despite the vehicle being a newer model, it is relatively cheap to insure, as long as the driver has a good, fair provider that offers many opportunities for discounts. The reason this is so important is because the Honda Civic GX qualifies for many different money saving discounts that, when combined, equal humungous savings on automobile insurance. In fact, drivers won’t pay anywhere near the rate others pay for new car insurance if they are proactive about getting all of the discounts for which the car qualifies.

First and foremost, because the car uses natural gas, it is much better for the environment. In the past, insurance discounts were only offered to owners of hybrid cars, but lately insurance providers are rewarding anyone who takes an environmentally friendly step in the right direction. Therefore, drivers will want to be sure to ask their providers about receiving a “green” discount. Even if a particular provider doesn’t offer this discount, there is still reason to hold out hope, since more and more providers are honoring this beneficial choice.

In addition to being eligible for a green discount, the Honda Civic GX also has many safety features that qualify it for some serious safety discounts. These include advanced compatibility engineering, anti lock brakes with electronic brakeforce distribution, daytime running lights, front seat active head restraints, dual stage multiple threshold front seat airbags, three point seatbelts with automatic tensioning, front side airbags, outward rear seat lower anchors with tethers for small children, side curtain airbags, and a tire pressure monitoring system. All of these features come standard with the Honda Civic GX, meaning you can increase your discounts further by choosing to add on additional safety features. Additional features available include door edge guards, car covers, half and full nose masks, fog lights, and more.

In addition to the discounts for which this car automatically qualifies, drivers can also earn discounts for adding on anti-theft features and for having low mileage, a given if the car is purchased new. Plus, certain good behaviors can qualify a driver for discounts as well. This includes being a good driver – meaning not being involved in an accident or speeding infraction for at least six months, having multiple insurance policies with the same provider, paying insurance on time, and more. The best way to find out about these discounts is to talk with a representative or, better yet, for the driver to do the research on his or her own. That way, there is no missing out on discounts, even when dealing with a shady provider.

Drivers of the new Honda Civic GX can be proud and feel good about their vehicle, not just because it is saving them money on automobile insurance, but also because it is helping to protect the earth, and the driver as well.  After all, nothing could be more important than that.




GEICO Insurance for Used Vehicles

March 31st, 2011 Tammy Posted in Insurance Categories No Comments »

When people buy used cars, they often wonder if they will be able to get insurance for their vehicles through one of the bigger agencies, such as GEICO. The answer to this question is yes. GEICO does insure used cars, as do All State, Progressive, and many of the other “big name” insurance companies.  A lot of people assume that if they go with one of these larger companies, they’ll get the best deal possible, so they don’t bother to look anywhere else. The truth of the matter, however, is that while GEICO and other providers may be competitively priced, they may not be the best choice for your specific needs, especially as a used car driver.

Used cars are often more expensive to insure, simply because they run a higher risk of breaking down unexpectedly and causing an accident. So, used car owners need to be especially selective when they find an automobile insurance provider. They will want one that does not treat used car owners like second-class citizens and that provides affordable coverage for their automobile. The only way to find the best provider, then, is to spend some time searching and, more importantly, researching!

Even if you have your heart set on GEICO or one of the other major providers, it’s a good idea to take into consideration all the licensed providers in your area. Sometimes, smaller, local providers will offer great discounts and excellent customer service in the hopes of keeping up with the competition. These smaller companies are also known for having better rates for used car owners. Just spend some time reading up on each different provider in your area. Make sure you check out online client reviews and visit the websites of a wide variety of providers. As you do this research, you can start to narrow your list down, making your search more manageable.

Once you have limited your choices to a few providers, hopefully a mix of both major companies and smaller companies, you can begin requesting free rate quotes from each provider. Most insurance companies will let you do this on the phone or even online, though some will require an in-person visit. Any policy regarding rate quotes is acceptable, as long as a company doesn’t try to charge you for the quote. If a provider does this, it is a big red flag and that company should be avoided altogether.

When you have your rate quotes, spend some time comparing and listing the pros and cons of going with each company. Don’t just pay attention to price either, but to other factors, such as the level of service and claims handling efficiency. GEICO, for example, is known for providing excellent customer service but for being a little on the slow side when it comes to handling claims, meaning you’d have to decide which faults are worth it and which positives you can’t live without. The important thing is simply to find the right fit for you, whether it be GEICO or not.




Chevrolet Equinox Car Insurance

March 25th, 2011 Tammy Posted in Insurance Categories No Comments »

For anyone who wants the look and feel of a sport utility vehicle (SUV) without having to pay a fortune in gas and automobile insurance costs, the 2011 Chevrolet Equinox is an excellent choice. This sleek, sporty SUV crossover is fuel efficient and has excellent features that can help you to save money on automobile insurance. It’s definitely not a car that you can afford to overlook, especially if you’re in desperate need for reduced insurance rates.

Safety features that come standard with the 2011 Chevrolet Equinox include the patented Stabilitrak electronic stability control system, traction control, rollover mitigation, all wheel drive, four wheel anti-lock brakes, electronic brakeforce distribution, six air bags that have rollover sensors, a built-in steel safety cage, and Onstar. As one might expect, the Chevrolet Equinox has performed quite well in safety and crash tests. Therefore, if you have an automobile insurance provider that offers safety discounts, you can save big by purchasing this car. If you don’t, then it might be time to consider finding a new provider. The best insurance companies want their clients to save money and make every effort to help them to do so. Not offering such discounts is a good indication that an insurance provider is just trying to suck as much money from you as possible, without regards to your satisfaction. With so many providers to choose from, there’s no reason to settle for this kind of treatment.

When it comes to fuel economy, you’re in luck with the Chevrolet Equinox. Automobilemag.com recently determined that this automobile has better fuel economy than the average hybrid! With a six speed automatic transmission and a four cylinder direct injection engine, as well as a “fuel saving mode” that can be turned on and off, you’ll get an estimated 600 highway miles with each fill up. Not only will this significantly lower your gas bills, but it can also get you discounts with your automobile insurance provider. Most offer low mileage discounts as well as discounts for drivers of environmentally friendly vehicles. In fact, some will even offer up the hybrid car discount, since this automobile performs even better than hybrid cars. Just have a conversation with your insurance provider about the discounts for which you and your new car qualify.

For these reasons and many others, such as a beautiful exterior and interior and state of the art technology even down to the pre-installed radio, you simply can’t go wrong with the 2011 Chevrolet Equinox. If you’re still not sure of whether or not you want to make the commitment, we suggest calling up a few insurance providers in your area and asking for rate quotes based on this automobile. We know you’ll be pleasantly surprised with the low numbers you’re quoted! If you’ve been considering this great car, there’s no better time than now to make a purchase and start saving on automobile insurance. Just make sure you find a good and honest provider to give you all the wonderful discounts to which you’ll be entitled.




Hyundai Sonata Auto Insurance

March 23rd, 2011 Tammy Posted in Insurance Categories No Comments »

The Hyundai Sonata is an excellent and affordable car, available in three different varieties. Drivers can purchase the basic Sonata, the Sonata turbo, or the Sonata hybrid. All of these cars are known for having a sleek, impressive interior, lots of horsepower, and excellent safety features. There is, in truth, absolutely no reason not to purchase this automobile. However, many potential owners are curious about what they can expect to pay in insurance costs for this automobile, and rightfully so. While the cost of insurance depends heavily on many factors such as place of residence, insurance provider, past driving history, and more, the Sonata is generally a relatively cheap automobile to insure.

As mentioned above, the Sonata has many impressive safety features. Thanks to four wheel brakes, front crumple zones, rear crumple zones, electronic stability control, a patented traction control system, electronic Brakeforce distribution, and brake assist, the car was named a “top safety pick” by the Insurance Institute for Highway Safety. As such, drivers of this car can receive safety discounts, especially if they add on even more safety features, such as backup cameras and more. Of course, not all insurance companies offer safety discounts, so it’s important for drivers of this car to find one that does. Otherwise, they’ll be missing out on a great way to save money.

Another important part of saving money on automobile insurance, for drivers of the Hyundai Sonata, or for any car is to go with the right insurance company. Many people make the mistake of thinking that all insurance providers are alike when this is simply not the case. As already discussed, some offer discounts to help the driver save money, while others are all about making all the cash they can. Plus, some just don’t provide the level of customer service and efficiency drivers deserve. For this reason, it’s important to do a lot of searching around when choosing an automobile insurance provider.

For drivers of the Sonata Hybrid, a good insurance company will offer not only a safety feature discount but also a hybrid discount, given to reward drivers for choosing an automobile that is better for the environment. Drivers of any of the Sonata cars can receive further discounts for having and maintaining low mileage, being good drivers or good students in the case of minor drivers, and more. It’s very easy to save cash for drivers who are willing to look into all the available discounts in their area for which they qualify and then pursue them relentlessly.

It is also important to note that newer cars are generally much cheaper to insure. They are less likely to break down or incur problems, so a good insurance policy for a new Sonata should be much cheaper than insuring an older car. If it is not, this is a good sign that it’s time to switch insurance providers. In fact, even when drivers have a good provider, they should consistently check, at least every six months, to make sure they couldn’t be getting a better deal elsewhere. Any time one goes through life changes, such as a divorce, marriage, or the birth of a child, is also a good time to check and see if insurance rates have changed. Different life changes can cause insurance premiums to go up or down, and it’s something that drivers really have to stay on top of themselves. Otherwise, they could miss out on great price reductions and end up paying much more than they have to for automobile insurance.

So, the basics for insuring the Hyundai Sonata include, most importantly, finding the most affordable policy with the best coverage, checking into discounts offered, making sure those discounts are applied to the policy immediately, and then continually checking to make sure this good deal stays a truly good deal. If drivers can do these things, they are much more likely to be happy with their insurance policies and to pay a fair amount for their coverage. All it takes is a little work and effort to save money and get great coverage, and it will definitely be worth it in the long run for those who make the commitment.




Audi Quattro Car Insurance Prices

March 18th, 2011 Tammy Posted in Insurance Categories No Comments »

If you are considering buying a luxury sports sedan, you may want to consider the Audi Quattro. This vehicle is a compact sports sedan that is perfect for daily driving and it can be a lot of fun to drive, too. While these are all attractive features that may help to make up your mind about purchasing this vehicle — smart consumers, especially in this economy are having to look at some of the more economical reasons for buying a vehicle. Therefore, it’s important to consider the Audi Quattro auto insurance prices before buying a vehicle.

The Audi Quattro is not only available in the form of a sedan; it is also available as a wagon or convertible, as well. The Audi Quattro sedan competes with other luxury sedans including the Lexus IS, the Mercedes Benz C-Class, the BMW 3-Series and the Volvo S60. The A4 Avant wagon stands against the competition, which includes the Jaguar X-Type, the Saab 9-3, the BMW 3-Series and the Volvo V550. The A4 Cabriolet convertible competes with the Mercedes-­Benz CLK, the Volvo C70, the BMW 3-Series and the Saab 9-3.

The auto insurance prices for the Audi Quattro vary according to the vehicle’s model type. The convertible version carries the highest insurance premiums for this model, due to the higher risk associated with driving high-powered sports cars. While, the insurance for the sedan version of this vehicle is the moderately option of this model and the Audi Quattro wagon will typically, carry the lowest price for insurance, due to its decreased risk of being stolen (compared to the convertible version, which is often stolen for joy riding).

Insurance companies use different variables to determine the actual rate quote for an Audi Quattro. One of the biggest factors for determining your rates for a particular vehicle, in this situation the Audi Quattro is the safety features that have been factory-installed. Safety features in the Audi Quattro help to make drivers eligible for special discounts. All Audi Quattro versions have similar safety features including, passenger and side impact airbags, driver front and side airbags, and optional rear side airbags, as well. The Cabriolet convertible is also available with knee airbags for added safety. There are also a variety of other discounts that you may qualify for, depending on whether you meet the requirements of your insurance company.

The Audi Quattro offers affordable insurance rates, due to its safety features and other discounts. However, rather than opening a new policy for your Audi Quattro through your current insurance company — you can compare quotes from several different coverage providers in your area to find the cheapest rate quote for your Audi Quattro. This will provide you with a more accurate estimate of the cost to insure an Audi Quattro.

The Audi Quattro is not only fun to drive, but it also offers safety, reliability and affordable insurance prices, as well. The key to finding affordable rates is to compare insurance prices to find an insurance plan that meets your needs.




Nissan Maxima Auto Insurance Rates

March 17th, 2011 Tammy Posted in Insurance Categories No Comments »

If you are considering buying a new car and a Nissan Maxima is at the top of your list – it is important to understand the total costs of ownership, including the sticker price, the average cost of gas and your estimated car insurance premium.

The Nissan Maxima is a sports sedan that was designed especially for big families. The Maxima combines comfort, technology, performance and plenty of cargo space. Nissan’s Maxima is one of the most attractive sedans on the road combining a sporty exterior and a sleek look. This sedan also offers incredible acceleration, suspension and amazing handling. The Maxima offers incredibly comfortable seating and a well-designed interior to create the perfect “family car” with a touch of luxury and class.

Nissan Maxima auto insurance rates are dependent on a number of different factors, including some that are related to the type of vehicle, as well as, other variables. Therefore, it is difficult to discuss the exact rates for this vehicle. However, we can provide an estimate of the average auto insurance rates for the Nissan Maxima.

For instance, the 2010 Nissan Maxima S FWD 4-Door Sedan V6 has an average annual insurance cost of approximately $1,580. This estimate can give you an approximate idea of what you may be charged for insuring the Nissan Maxima.

Insurance companies use crash test ratings to calculate your insurance premium, as well. This is good news for Maxima owners, especially anyone who owns or purchases a new model. In fact, in 2009 and 2010, the Nissan Maxima received five out of five stars for every possible crash test, performed by the federal government. This includes a five star rating for frontal driver crash tests, frontal passenger testing, side driver testing, side rear passenger testing, and rollover testing.

According to the U.S. News, the 2010 Nissan Maxima was ranked number 16 from 21 luxury midsize cars. The sporty Maxima is one of the most enjoyable cars to drive in its class. The Nissan Maxima also made 7th on the list of the most stolen vehicles of 2010, which could lead to an increase in your insurance rates. However, there are several opportunities for Nissan Maxima drivers to receive considerable discounts. Some of the personal discounts you may be eligible for include, discounts for safe drivers, 55 and up, good students and more. In addition, Nissan Maxima drivers are eligible for certain discounts based on certain safety features and anti-theft devices, as well. Some of these special discounts include, a passive restraint systems discount (drivers can save a maximum of 30 percent if their vehicle is equipped with motorized seatbelts and factory-installed airbags, an anti-lock brakes discount (for this feature, Maxima drivers can receive up to a ten percent discount on their premium) and a discount for anti-theft devices (a Nissan Maxima that is equipped with an anti-theft device can save up to ten percent off their premium).

Overall, insurance prices the Nissan Maxima are actually, quite reasonable. By comparing rates you can find the cheapest price for Nissan Maxima insurance and a plan that meets your needs.




Will Driving During Rush Hour Cost You More on Your Auto Insurance?

March 16th, 2011 Tammy Posted in Insurance Categories No Comments »

Miles of traffic, edgy, impatient drivers and road rage are all aspects that characterize rush hour traffic. If you are part of the 9 to 5 madness – you know this, all too well. One fact that you may not be aware of is that driving during hectic rush hour can potentially, cost you more on your auto insurance.

Insurance companies use many different factors to determine your premium rates. Your insurance premiums are based on personal facts about you and other drivers in your household. These facts include your age, gender, your driving history and credit information and the ages, gender and driving history of everyone who will be listed on the policy, as well.

Insurance providers use this information (as well as, information including, the make, model and year for any vehicles that are listed on the policy) and compare the risk to insure you, in order to calculate your rates. For instance, an 18-year old male who drives a brand new (and very expensive) sports car would be considered a very high risk to insure. Therefore, his rates would be on the higher end of the scale, especially compared to a more experienced female driver in her 40’s that drives a five-year old minivan. 

Another aspect that may affect your rates is your location, especially because it determines how much you will drive. The less time you spend on the road – the less of a chance you will have of being involved in an accident, therefore, it lowers the risk to your insurance provider, leading to lower rates for you. However, if you are on the road quite a bit or you have a long commute that forces you to drive through rush hour traffic – your rates will be higher, just because you are around more cars and the risk of a claim is greater.

The good news — for all of you who spend a lot of time behind the wheel during rush hour — is that there is a new insurance option that allows you to bypass these higher insurance rates. This type of auto coverage is known as, Pay As You Drive (PAYD) insurance or Usage based insurance. Pay as you drive insurance utilizes different factors than traditional insurance to calculate your rates. Rather than calculating your rates based on such factors as, your driving history – PAYD insurance uses factors including, the type of vehicle you drive – compared with the distance you drive, the places where you drive and the times you are behind the wheel to calculate your rates.

How Does it Work?

The cost for Pay As You Drive insurance, in its simplest form, is based on the number of miles you drive. However, the primary concept of PAYD insurance calculates your insurance costs not only on how much you drive, but also when and where you drive. There are basically, three types of Pay As You Drive insurance:

  1. Your rates are based on your vehicle’s odometer reading.
  2. Your rates are based on the amount of time (in minutes) that the vehicle is in use. This information is transmitted to the insurance company via RF technology or cell phone.
  3. Your rates are based on information that is collected from the vehicle such as, the time of day you are driving, the speed you are driving, the amount of time on the road and the distance traveled.

In addition, the formula used to calculate your rates can include the amount of miles you drive, can be based on the type of vehicle you will be driving and/or the driver’s identity. After you have established the basic principle of this type of usage-based insurance, you can always discuss further details later, including adding a risk premium for driving too long, using your mobile phone while driving and traveling at excessive speeds.

The last two insurance types, where vehicle information is transmitted automatically to the system is known as, Telematic usage-based insurance. Telematic insurance offers much more updated and immediate changes to the cost of insurance, which means that drivers will have a much greater incentive to drive safer (and under safer conditions).

Overall, Pay As You Drive insurance is the ideal key to combating the high costs of driving during rush hour.