| You can pay as you talk with a cell phone plan, so | | | | Defense, the Conservation Law Foundation and |
| why not pay as you drive auto insurance? It | | | | even the U.S. Environmental Protection Agency |
| sounds like a good idea; but would pay as you | | | | are working to organize a national cooperative |
| drive auto insurance work for you? The idea | | | | that would work with insurance companies to |
| behind pay as you drive auto insurance is simple. | | | | offer deep discounts for low-mileage drivers; |
| Basically its this- if you do not drive very much, | | | | halfway a step toward PAYD (Pay As You Drive) |
| you will not pay high insurance premiums. | | | | insurance. |
| Advocates for this type of insurance policy think | | | | General Motors and On-Star Offers PAYD Rates. |
| that there are many merits to this type of | | | | In mid-2004 General Motors Acceptance |
| program. What if you car pool to work, or take | | | | Corporation (GMAC) Insurance began offering |
| public transit? You are not using your car very | | | | mileage-based discounts to OnStar subscribers |
| much so why are you paying high premiums. With | | | | located in some states. The OnStar system |
| a pay as you drive auto insurance premiums you | | | | reports a vehicle's odometer readings at the |
| would be able to quite literally pay as you go. | | | | beginning and end of the policy term to verify |
| Another situation where this plan would be of | | | | mileage. Motorist who drive less than specified |
| benefit is that of many retirees who have winter | | | | annual mileage can receive insurance premium |
| homes in temperate climates, the 'snowbirds' living | | | | discounts of up to 40%. PAYD programs are also |
| in Florida or Arizona six months of the year and | | | | currently available in Israel, South Africa and |
| six months in New York or Toronto for example. | | | | Holland. PAYD is gaining momentum, and will be |
| Essentially the insurance companies would set an | | | | coming to your area soon. |
| average driving amount for each car type. It | | | | But will it ever arrive in the biggest Car Insurance |
| could then be broken down into a cents per mile | | | | market, the UK? |
| basis. If you wanted to us the pay as you drive | | | | There has been a lot of debate and forwarded |
| auto insurance system you could purchase a set | | | | working concepts but non yet approved. |
| number of miles and you would be covered for | | | | Discussions have been put in place and |
| insurance during this period. | | | | considerations made but for as far as the UK |
| Pay as you drive auto insurance is an excellent | | | | drivers are concerned, that is as far as it has |
| idea for those individuals who do not use their car | | | | gone. Perhaps the industry has too much to lose |
| very much or try to find cost saving methods or | | | | with this new money saving concept so it will be |
| environment saving alternatives. Currently this | | | | put off for a while, but as pressure and country's |
| type of program is not yet available, but there | | | | evolve into the new scheme it would be irrational |
| are supporters in many states who are hoping to | | | | for the UK to stay behind, fingers crossed peps. |
| change that soon. Groups including Environmental | | | | |