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Auto Insurance Basics

Auto Insurance Coverage In Depth

Auto Insurance Premiums

 

 

Distance

There are several ways in which distance can play a part in insurance premiums, however, not all companies take this into consideration.

Estimate

Some companies allow the insured to estimate their driving distance per year. Average is considered about 10,000 - 15,000 miles per year. The less you drive, the better the discount, however you will not save a great deal of money from this as it is not verified by the insurance company.

Pay per mile

In this system, used in Oregon and possibly being picked up by a few other states (Cents Per Mile Now) allows the insured to purchase a set number of miles of insurance. When the policy is bought, the odometer reading is written on the insurance card. It is the insured's responsibility to keep track of when their insurance is going to expire. During a traffic stop, a police officer could easily verify insurance coverage by comparing the insurance card to the odometer.

GPS and OBDII systems can also used, but rarely, and track the insured as they drive, noting behaviors. Progressive insurance in Texas used the GPS system in 1998 and the OBDII in 2004 but neither have really gained popularity.


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