What many of the auto insurance companies have looked for over the years is some way to respond to the changing needs of consumers. While fuel prices are on the rise, consumers all across the country are trying to find some way to save money at the pump. Our finances are now tightly bound by many consumer goods, and among them is the soaring price of gasoline and the costs involved with paying auto insurance. A new insurance program known as a pay as you drive program which may be able to offer drivers some relief on their finances, has been the response of some insurance companies. Officially called Environmental Defense, the program is used to track an individual’s car mileage. Two ways are being proposed to accomplished. From time to time an embedded cell phone containing a proprietary odometer calls in your mileage to the insurance company. One other method of tracking your travel route to report the mileage involves installing a GPS device into a phone in the car, just as the On Star system works. If you are indecisive on which method will be for you, maybe you need a bit more information. There are some consumers who feel that the GPS system imposes on their right to privacy so they do not want it for this reason. Using the GPS method has its advantages, however, as it not only keeps track of the mileage but it also advises the time to travel and the route to follow. It is best to compare your privacy concerns with the benefits of the two methods. Since the insurance companies will be offering a financial incentive for driving less, the Environmental Defense thinks that a pay as you drive program will eventually save the consumers money as well as helping to reduce pollution. One benefit of the pay as you drive program would be a reduction in the number of drivers from the already congested streets and highways of the cities where traffic can be a tremendous problem. The pay as you drive insurance programs could make auto insurance more affordable by giving the consumers more control over their auto insurance premiums. It is easy to decide how much can be saved by a pay as you drive program. The program would charge part of your annual premium rate into a per mile fee by assigning your car to a group, according to your zip code, vehicle type and usage. When the per mile rate is determined you may have to pay an upfront fee for your pre-determined mileage. The amount of time you spend driving is what determines whether you will receive a rebate or pay more. There have been estimates of a possible savings of up to twenty-five percent that some policy holders can have on their auto insurance when using this type of program. If you can actually save money on the cost of auto insurance and improve the environment and cut down on the amount of congested highways, it could be the best way to go.
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