With car insurance costs continuing to rise, here at the CarPro we’ve been trying to give you tips on saving money in your insurance. We've recently shared lists of the least costly sedans to insure along with the most affordable trucks and SUVs to insure. Another way you could potentially save on your insurance is by using Pay-As-You-Go insurance - also referred to as pay-per-mile, or usage-based policies. Simply put, it is coverage based on how many miles you drive.
Not all Pay-As-You-Go policies are the same. AutoInsurance.org recently shared it's list of the Best Pay-As-You Go providers, but first, a word of caution. These type of policies typically mean your insurance company needs to monitor your driving. This is usually done with the use of some kind of device or app that helps your insurance company determine how many miles you’ve driven. Be aware though they can also provide insurers with other info, like whether you have a habit of speeding or braking harshly. As you might imagine, those habits won't work in your favor when it comes to getting a break on your premium. On the other hand, if you're a low-mileage, safe driver who doesn't engage in risky driving behavior, this type of policy could benefit you.
"People want to pay an insurance premium that accurately reflects their risk. If they don't drive much, they don't want to pay as much as someone who drives a thousand miles weekly," said Melanie Musson, a nationally recognized insurance expert with AutoInsurance.org.
If you object to an insurance company monitoring how you drive, this is not for you. But if you think you might like to give one a try, here are AutoInsurance.org's Top 3 picks for Pay-As-You-Go insurance.
Nationwide Insurance Is #1
Nationwide ranks first on the list for several reasons:
Allstate Makes #2 Spot
Allstate takes the second spot. It's the cheapest option for high-mileage drivers who wish to participate in this type of program. AutoInsurance.org offers up to a 25% discount for good driving habits, and, like Nationwide, they cap the daily miles at 250, so driving 1,000 miles in one day during a road trip won't result in a skyrocketing premium.
One drawback is that Allstate's program is only available in 21 states.
MileAuto Comes in #3
If you haven't heard of MileAuto, it's because it isn't nearly as well-known as the other top companies. Still, AutoInsurance.org ranks it highly at No. 3.
One of MileAuto's best features is its privacy allowance. It does not require drivers to participate in monitoring through an app or installed device, which is one of the leading reasons people opt away from usage-based programs.
Its per-mile rate is one of the lowest, but it does not offer a daily cap on miles, so drivers will pay for every mile they drive. Since it only writes policies in 11 states, most United States residents will be ineligible for coverage.
If you want to see the complete list of the Top 8 Pay-As-You-Go ranked insurance companies, check out the AutoInsurance.org guide here.
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