This pay as you drive coverage lets safer drivers prove their reduced risk for premiums discounts.
Auto policies can be quite costly and they are certainly an area in which most drivers would like to be able to reduce their expenses so they can direct that money to other areas of their budgets, and in response to this, usage based insurance products are being offered by many insurers in order to provide those motorists with a greater chance to save.
While not everyone can benefit from savings through these auto insurance programs, lower risk drivers can.
Among the main examples of people who can greatly benefit from usage based insurance are those who work from home and whose vehicles are parked all day long. While many of these people do still require a car for making certain regular trips, the fact that they’re not on the road on a daily basis, particularly during rush hour greatly reduces their risk of being involved in a crash. Now, people in this and similar situations in Pennsylvania will have new options for saving.
A new usage based insurance policy is now being offered to Pennsylvania drivers through a California based insurer.
The insurance company now bringing pay as you drive insurance to Pennsylvania is called Metromile. Through this program, it allows a driver to pay for the coverage they actually use as opposed to facing more of a flat-rate style situation. The idea is that the driver will have premiums that are more customized to their own unique driving habits.
According to the CEO of Metromile, Dan Preston, “Metromile is about per-mile insurance. So, you pay for what you actually use, instead of one flat-rate.” For people who don’t use their cars very much, many feel that it offers a type of coverage that is more suited to their lifestyles.
In Pennsylvania, there are many people who could be considered to be in the “low mileage” category. In fact, according to Preston, 65 percent of drivers are travelling less than 12,000 miles per year in their vehicles. This means that their premiums are “subsidizing the other 35 percent who are high – or those who are regular T and bus riders, especially in Pittsburgh.”
Preston pointed out that he feels usage based insurance is an important opportunity in the state and especially in Pittsburgh. “It’s a great city with a lot of public transit. So, there are a number of drivers who are using their cars for purposes other than commuting every day,” he said.