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