Free Auto Insurance Quotes Online

In the tough economy, many people are struggling to meet their monthly financial obligations. Signing up for extended insurance policies is challenging for many households struggling to make ends meet. Many times this leads to paying for full coverage insurance on household vehicles that are not driven as the primary vehicle, making costs unnecessarily higher. Pay-as-you-go auto insurance is a new type of auto insurance that allows drivers to pay for their coverage based on the miles they drive over a certain period of time. The benefits of pay-as-you-go auto insurance allow policyholders to reduce their auto insurance bill substantially.

Obtaining an auto insurance quote simply gives an accurate estimate of monthly car insurance costs. Traditional car insurance coverage provides coverage for driving an immeasurable amount of miles each day and is based more on other factors, like the type of car and the driver’s record. A pay-as-you-go auto insurance policy provides the same amount of full coverage, but it is in proportion to the amount of miles driven — minimizing costs for those who drive less. For example, a stay-at-home parent may drive less than 10 miles each week. The secondary vehicle they drive may stay within the neighborhood and make a few shopping trips each month. Under a normal policy, this wouldn’t matter. However, in using pay-as-you-go auto insurance, this low mileage is a primary factor in the auto insurance rate and can drastically cut the family’s annual car insurance costs. The bulk of the car insurance costs would be for the family member with the long daily commute to work.

Like any other sort of car insurance, there are numerous variables that determine an insurance rate. However, unlike these policies, pay-as-you-go insurance will weigh the distance driven on monthly basis at a higher level. This being said, one also has to be aware of the mileage allotment a vehicle may have under this sort of coverage. Going over that number may result in additional fees for the driver.

Pay-as-you-go auto insurance is a great way to keep costs down. An increasing number of people who live in the city are commuting by train, bus, bike, or walking to work. Their vehicles are used exclusively for shopping during weekends, and a few short trips throughout the week. This group of people can greatly benefit from this sort of policy. Retired people and those that work from home can also benefit from this sort of car insurance coverage.

Monthly bills can be reduced greatly by driving less and using pay-as-you-go auto insurance. It is something every household should consider if a minimal number of miles are driven each month.