{"id":4631,"date":"2019-11-04T21:28:35","date_gmt":"2019-11-04T21:28:35","guid":{"rendered":"https:\/\/veloxinsurance.com\/?p=4631"},"modified":"2023-10-06T20:38:34","modified_gmt":"2023-10-06T20:38:34","slug":"how-does-pay-per-mile-insurance-work","status":"publish","type":"post","link":"https:\/\/veloxinsurance.com\/blog\/how-does-pay-per-mile-insurance-work\/","title":{"rendered":"How Does Pay Per Mile Insurance Work?"},"content":{"rendered":"\n

Car insurance<\/a> is an important part of owning a vehicle. It provides protection for you when you drive and ensures that you are covered if you are in an accident. However, the costs of insurance have seemed to increase a lot over the years. This can be bothersome for some people, especially those who do not drive very often.<\/p>\n\n\n\n

Fortunately, there is an alternative hitting the market that can be a cheaper option for those who do not drive very much. Pay by the mile insurance<\/a> plans provide an option for drivers who only drive occasionally or only short distances. Velox Insurance offers this type of insurance to provide an alternative for occasional drivers.<\/p>\n\n\n\n

After years of study and the various\ninsurance companies that use wireless devices to keep track of their customers’\ndriving habits, new data has been discovered that show a better picture of a\nperson’s likelihood of getting into an accident. The insurance industry has\ncome to the realization that those who drive less are less likely to have an\naccident.<\/p>\n\n\n\n

Due to this correlation, companies\nsuch as Velox Insurance, have decided to reward those drivers with lower cost\ninsurance rates. This pay by the mile insurance option offers a cheaper\nalternative to standard insurance policies. The price of the insurance is based\non how much you drive every month.<\/p>\n\n\n\n

Most insurance companies, even for\ndrivers who drive infrequently, place customers in a risk pool. This determines\nthe cost of your premiums. With a pay per mile policy, the premiums are\ndetermined by your actions. You pay less when you drive less, but still\nmaintain full coverage.<\/p>\n\n\n\n

How is the Pricing Determined?<\/strong><\/h2>\n\n\n\n

The average driver for the nation\ndrives about 12,000 miles per year. This is the mileage often considered when\ninsurance policy prices are determined. However, if you drive less than the\naverage in a year, you are probably overpaying for your insurance policy.\nTherefore, the pay per mile option may be a good idea for you to consider.<\/p>\n\n\n\n

The typical per mile policy will\ncharge a low rate per month. You will then be charged a set rate per mile. This\npricing is often just a few cents for every mile you drive. If you drive a\nlittle more in one month, your premium will be a little higher. However, if you\ndrive less in a month, your premium will also be less. For those who drive very\nlittle each month, they can save hundreds of dollars every year on their\npolicy.<\/p>\n\n\n\n

How do They Keep Track of the Miles?<\/strong><\/h2>\n\n\n\n

For several years now, there have\nbeen insurance companies that have been using a device that can be easily\nplugged into a vehicle. This device keeps track of all the miles you drive in a\nmonth. This allows the insurance company to keep an accurate record of your\nmileage to provide you with lower monthly rates.<\/p>\n\n\n\n

Most vehicles produced after 1995\nwill work with any of these plugin devices. You simply plug in the device and\nit immediately begins to keep track of your mileage. The information is\ncontinuously streamed to the insurance company to ensure accurate accounting of\nyour mileage.<\/p>\n\n\n\n

Is the Pay per Mile the Right\nOption?<\/strong><\/h2>\n\n\n\n

If you are a driver with a clean\nrecord and drive less than 12,000 miles a year, this car insurance option has\nthe potential to save you a lot on your policy premiums. The less you drive,\nthe lower your costs will be each month. However, if you frequently drive over\nthe average, this plan may not be for you.<\/p>\n\n\n\n

Even at a price of a few pennies a\nmile, driving more than the national average can end up being quite expensive.\nIf you underestimate how much you tend to drive, you may be in for a shock on\nyour bill. For example, you may think your trips out are short and infrequent,\nbut in reality, you may be driving a lot farther.<\/p>\n\n\n\n

Before deciding on this option, you\ncan always keep track of your mileage for an entire month. Most vehicles have a\ntrip meter. You can set it on the first of the month and check it at the next\nfirst. If your mileage is under a thousand, this plan may be right for you. If\nit is over, you might want to stay with your current policy.<\/p>\n\n\n\n

Other Things to Consider<\/strong><\/h2>\n\n\n\n

If you are an occasional driver,\nthis plan could be a good fit for you. This can even be a good fit for those\nwith a less than perfect driving record. However, you should always get a quote\nbefore making the switch. Accidents, tickets, and other violations can increase\nyour costs, just as they would with any insurance policy.<\/p>\n\n\n\n

There are some insurance companies\nthat only use the in-car device to keep track of your mileage. However, there\nare some that do monitor your driving habits. In some cases, driving frequently\nat night or braking hard at a stoplight could have the potential to increase\nyour rates. It is important that you discuss these things with your insurance\nagent.<\/p>\n\n\n\n

Some insurance companies even\nprovide daily limits on the per mile rate. This can be a benefit for those who\ntake the occasional long trip. However, it may be a good idea to discuss these\nrates with the insurance agent if a long trip is a possibility for you. This is\nespecially important if those occasional trips have the potential to raise your\nmileage above the national average.<\/p>\n\n\n\n

Conclusion<\/strong><\/h2>\n\n\n\n

Velox insurance is adding the pay by mile insurance<\/a> program to their products to give drivers more options to save on their insurance costs. If you are an infrequent driver with a good driving record, you could end up saving hundreds of dollars on your yearly premiums.<\/p>\n\n\n\n

If you work from home, are a stay at\nhome mom, or are retired, and do not get out very often, there is no reason for\nyou to pay as much as a daily driver would. Getting a quote on a new policy\ndoes not cost a thing and could save you a lot of money. <\/p>\n","protected":false},"excerpt":{"rendered":"

Car insurance is an important part of owning a vehicle. It provides protection for you when you drive and ensures that you are covered if you are in an accident. However, the costs of insurance have seemed to increase a lot over the years. This can be bothersome for some people, especially those who do […]<\/p>\n","protected":false},"author":1,"featured_media":9362,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[3],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/posts\/4631"}],"collection":[{"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/comments?post=4631"}],"version-history":[{"count":1,"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/posts\/4631\/revisions"}],"predecessor-version":[{"id":9363,"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/posts\/4631\/revisions\/9363"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/media\/9362"}],"wp:attachment":[{"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/media?parent=4631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/categories?post=4631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/veloxinsurance.com\/blog\/wp-json\/wp\/v2\/tags?post=4631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}