Insurers invented many different types of discounts you can take advantage of when shopping for cheap car insurance. Low mileage discounts are common among insurance companies, and easy to take advantage of assuming you don’t drive very much. They are also perfect for families with a second, lesser driven vehicle, or perhaps a work vehicle. There are different ways of getting such a discount:
Use The Pay-As-You-Go Plan
If you have a Pay-As-You-Go insurance plan, than your premium adjusts depending on the number of miles you drive. These plans have multiple benefits: they save you money, encourage users to drive less and drive more environmentally friendly, and this therefore lowers your transportation costs. GMAC is one example of an insurance company with this type of program. These types of programs have been popular in Europe for a while, but have only recently made their way to the United States. Therefore it might be hard to find such a program, but they do exist!
rEview MyRate Program by Progressive
Progressive Auto Insurance is a popular insurance company that provides a “MyRate program.” This program gives drivers who do not drive after midnight, have a good driving history, and drive less than 10,000 miles per year a discount of up to 25% on their premiums. Progressive provides a device that you hook up to your car so that they can monitor your driving habits.
Like Progressive, OnStar also has a tracking device. Some insurance companies take your word for it on how many miles you drive during your initial quote. However, if you need to submit a claim, you may need to prove how much you drive per year. Other companies will require you to sign up for a monitoring service, such as OnStar. These types of services determine your mileage and driving habits in real-time so that discounts can be applied. OnStar has many benefits outside of insurance discounts, and may be a good option for your family.
These are only some of the options available on the market today from some of the top insurance companies. Wjen you need cheap car insurance, the only way to know what discounts are available to you is to ask! Comparison-shopping is a great way of making sure you are getting the best deal. Using the Internet is the easiest way to look around and research the type of insurance coverage you require.