Should We Encourage a Pay-Per-Mile Car Insurance System?
Most people accept the fact that their car insurance policy is a necessary evil, the price they pay for having the freedom to cruise the friendly highways.
(No, we can't cruise the friendly skies with our cars yet-but it's coming.
) Most of them also accept the fact that as part of that necessary evil they're going to end up paying for coverage even when they're not out on the roads, something that's not such a big deal when you're just talking about a Saturday night at home but becomes a great deal more annoying when you've recently had surgery or your car needs repairs and it's been sitting in your driveway for six months.
Pay-per-mile car insurance is going to change all that.
Car insurance companies that adopt this revolutionary new system (which isn't all that new-many drivers have been fighting to get this system adopted in all fifty states for years) will offer drivers affordable policies based not on what type of car they drive but on the amount of time they actually spend out on the roads.
The pay-per-mile system works like a prepaid phone card.
You're paid for (X) amount of miles.
Once you've driven past that number your car isn't covered anymore.
It's time to add more money onto your account.
In the meantime, it's a good idea to make sure you don't have a cop looking for your car insurance card hanging over your shoulder! When you purchase insurance with a pay-per-mile system you simply let your insurance carrier know how much you believe you will drive in the next six months.
That may be 2,000 miles or 20,000, depending on your career.
You'll pay (X) amount to enjoy full insurance coverage for this time period, which is measured in months rather than miles, and when you cross that point (whenever that happens to be) you simply call your car insurance carrier up, ask them to add more money and miles to your account, and voila! You're good to go.
Many car insurance carriers are arguing the wisdom of a pay-per-mile system, claiming it will be too hard to enforce and cause unnecessary aggravation for all parties involved.
Many experts see it differently, however.
Because your insurance policy is based not on the amount of time you've had your car but on the number of miles you've driven your insurance card is going to have a mileage number rather than a date on it.
It's possible to slip a cancelled car insurance policy past the officer in question if you have a card that was issued prior to the cancellation saying that as of today you're covered.
It's a good deal harder to convince them of that when your odometer is telling a different story.
Of course, the financial benefits of not having to pay for a car you're not using isn't the only perk to a pay-per-mile system.
Consider the amount of emissions our cars spit into the atmosphere.
Many experts hold them primarily responsible for the damages we've done to our ozone layer.
Certainly they're not helping the smog surrounding our major cities.
Right now we don't have any incentive to stay off the highways.
After all, why pay for car insurance you're not going to use? In the interests of saving money on your car insurance, however, don't you think you might be a little more careful about exactly how you use the mileage you've already paid for? So should we endorse a pay-per-mile system? Absolutely.
The only ones who are going to lose out in this case are the car insurance companies-and they're the ones we're letting decide how we're going to pay for our car insurance?
(No, we can't cruise the friendly skies with our cars yet-but it's coming.
) Most of them also accept the fact that as part of that necessary evil they're going to end up paying for coverage even when they're not out on the roads, something that's not such a big deal when you're just talking about a Saturday night at home but becomes a great deal more annoying when you've recently had surgery or your car needs repairs and it's been sitting in your driveway for six months.
Pay-per-mile car insurance is going to change all that.
Car insurance companies that adopt this revolutionary new system (which isn't all that new-many drivers have been fighting to get this system adopted in all fifty states for years) will offer drivers affordable policies based not on what type of car they drive but on the amount of time they actually spend out on the roads.
The pay-per-mile system works like a prepaid phone card.
You're paid for (X) amount of miles.
Once you've driven past that number your car isn't covered anymore.
It's time to add more money onto your account.
In the meantime, it's a good idea to make sure you don't have a cop looking for your car insurance card hanging over your shoulder! When you purchase insurance with a pay-per-mile system you simply let your insurance carrier know how much you believe you will drive in the next six months.
That may be 2,000 miles or 20,000, depending on your career.
You'll pay (X) amount to enjoy full insurance coverage for this time period, which is measured in months rather than miles, and when you cross that point (whenever that happens to be) you simply call your car insurance carrier up, ask them to add more money and miles to your account, and voila! You're good to go.
Many car insurance carriers are arguing the wisdom of a pay-per-mile system, claiming it will be too hard to enforce and cause unnecessary aggravation for all parties involved.
Many experts see it differently, however.
Because your insurance policy is based not on the amount of time you've had your car but on the number of miles you've driven your insurance card is going to have a mileage number rather than a date on it.
It's possible to slip a cancelled car insurance policy past the officer in question if you have a card that was issued prior to the cancellation saying that as of today you're covered.
It's a good deal harder to convince them of that when your odometer is telling a different story.
Of course, the financial benefits of not having to pay for a car you're not using isn't the only perk to a pay-per-mile system.
Consider the amount of emissions our cars spit into the atmosphere.
Many experts hold them primarily responsible for the damages we've done to our ozone layer.
Certainly they're not helping the smog surrounding our major cities.
Right now we don't have any incentive to stay off the highways.
After all, why pay for car insurance you're not going to use? In the interests of saving money on your car insurance, however, don't you think you might be a little more careful about exactly how you use the mileage you've already paid for? So should we endorse a pay-per-mile system? Absolutely.
The only ones who are going to lose out in this case are the car insurance companies-and they're the ones we're letting decide how we're going to pay for our car insurance?
Source...