Pay Per Mile Insurance Can Help Part-Time Drivers Save On Premiums

Americans are spending significant amounts of money on car payments, insurance, and gas money each year. Interestingly, Insurance can cost a fortune and on average one spends between $1,100 and $2,040 per year on an insurance premium.  This is a huge amount of cash to pay for insurance which is not worth depending on your frequency of driving.

As a result, drivers can consider pay per mile insurance which gives them the option of saving cash by paying depending on how often they drive. Besides that, there are also other benefits of witching to pay per mile insurance.

Understanding Pay Per Mile Insurance

Pay-per-mile insurance is different from normal car insurance where one pays a flat premium depending on your driving history, where you live and the type of car you drive among other things. With PPM you pay how much you drive and the insurance company will track the miles you drive per month and charge a per-mile fee on top of the base rate. The base rate is determined just like regular insurance. The billing options include Prepaid Mileage, Post-paid Ad-hoc Billing, and Post-paid Recurring Billing.

This insurance cover offers comprehensive cover and you will pay premiums depending on how frequent you are on the road. If you drive different miles each month then your bill will vary.

Advantages of pay per mile insurance

Pay per mile insurance is ideal for part-time drivers who depend mostly on public transport and drive infrequently. This type of insurance addresses changing driver demands especially now that people are spending the most time at home.

It can help you save money on premiums. Providers are catering to drivers looking for options to drive their car when they want but don’t want to pay the normal expensive insurance premiums regular drivers pay. Interestingly besides saving money this insurance form can encourage less driving and that will minimize environmental impact.

You can get PPM through the Nationwide SmartMiles program, Metromile which costs $29 per month, Root which can enable you to save up to 52% on premiums, and the Progressive Snapshot program.

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