Prepaid Car Insurance?

Old LancerPrepaid car insurance, sometimes called behavior based car insurance, is designed for people who drive a lot less than the normal or average person does. Because they drive fewer miles, they have less of a chance of being involved in an accident. People who have less accident risk shouldn’t have to pay as much as people who have more accident risk, and that’s already often the case with insurance companies.

The idea with prepaid car insurance is that the rate would go down even further for people who don’t drive around as much. Less time on the roads equals more safety. However, the insurance companies would have to come to some kind of consensus about how much people were driving and whether they were actually safer, as well as addressing concerns like people with bad driving records who are claiming they won’t be driving very much.

How to ensure that people aren’t lying about how much they drive is something to address, too, because anyone who knows about the way insurance companies do this can easily say that he or she doesn’t drive much just so the rate will be lower. Unless that person is required to provide mileage information for his or her vehicle, and unless that information can be verified, there’s little that can be done to stop fraud from occurring just to save a little bit of money.

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