Auto insurance quotes and pay-as-you-drive

Auto insurance is all about calculating the risk you will be involved in a traffic accident. It’s both common sense and a statistical truth that the lower the number of miles you drive, the lower the risk of an accident. Except the big problem no insurer could solve is the tendency of so many of us to be economical with the truth about the number of miles we drive. Remarkably, if you rely on people to certify their mileage, no one takes their vehicle on to the public roads except to go to church come Sunday.

So insurers have had to wait for technology to catch up. Now an increasing number of companies are offering a policy and a black box to plug into your vehicle. Check out the next set of auto insurance quotes coming your way to see whether there are policies on offer in your state. These policies really do offer a pay-as-you-drive approach. The black boxes contain some moderately sophisticated chips to interface with your vehicles electronic systems (plus a GPS transmitter). Now the insurer can monitor when and where you drive in real time. One insurer also looks at your driving style, recording how often you break sharply or swerve from side to side.

Needless to say, many drivers have objected to this back box as an infringement on their privacy. The answer is, of course, no one forces you to fit the black box. If you want to keep on paying the standard auto insurance rates, that’s your choice. But if you want to make serious savings and your mileage is low, you fit the box and have more money at the end of the month to pay other bills. This type of policy will appeal to anyone who drives less than the average, i.e. those of you who are retired, homemakers and, possibly, unemployed. You will have to check out the precise premium rates. There will be a tipping point when the conventional auto insurance policy will work out cheaper. So do an accurate count of your miles over a month and then work out the premium rates on both systems. Only then can you know which policy will work best for you. As in everything connected with auto insurance, it’s better not to guess.