Pay As You Drive for Washington Car Insurance WA: Motor and American Coverage Rates in USA

Pay As You Drive for Washington Car Insurance WA

Do you know what pay as you drive can do for your Washington car insurance?

What Pay As You Drive Might Do For Your Washington car Insurance

Have you ever wondered why, exactly, you have to pay car insurance for a car you can’t drive for months after surgery? Or for 15,000 miles worth of coverage when you never drive any farther than ten miles from home? These are only a few of the questions spurring on the debate about pay-as-you-drive insurance (PAYD) and the effects it might have on your Washington car insurance policy.

The principle behind PAYD is pretty simple. Much like the pay-as-you-go minutes on cellular phones, you “buy” your mileage ahead of time. If you estimate you’re going to drive two thousand miles in the next four months you buy two thousand miles worth of coverage. In states where this option is currently being offered that totals to approximately $.04 per mile, or $80 per year. Even if you triple that to $240 for the year it’s still significantly less than the $400-800 most drivers pay in premiums.

The fiscal benefits to this type of Washington car insurance policy are fairly obvious. Drivers who don’t spend a great deal of time on the roads can save money on their car insurance policy-a LOT of money on their car insurance policy. For non commuters and those with a reasonably short commute each day this choice is ideal, particularly when you consider the fact that because most drivers’ mileage would be tracked by GPS they could enjoy the savings that come from traveling off peak hours rather than having to present themselves as a commuter and pay the consequences.

More importantly, it would bring affordable car insurance to Washington’s low income families. In low income neighborhoods a household often shares a single car in an effort to economize and keep food on the table. That means that these cars rack up more mileage throughout the year than those with only a single driver, a factor that car insurance companies view as “high risk” and use to all but double their insurance premiums-even though these drivers are no more high risk than anyone else.

Because these drivers can’t afford the ridiculously high insurance rates raining down from on high they instead choose to allow the policy on their cars to lapse. Although living in Washington car insurance is considered to be a legality no one should live without, for these families there are other priorities. By instituting a PAYD insurance program these individuals would be compensated for their shorter drive rather than penalized for having multiple drivers on a vehicle.

Unfortunately, PAYD is an idea that’s been slow to catch on among Washington car insurance providers. Why? Most car insurance companies argue that a PAYD system would be too difficult to track and control and wouldn’t properly account for many of the discounts and penalties used to keep the current system running; however, opponents state that the program would actually be easier to run (since insurance ends the minute the mileage runs out and can’t be covered up by showing a legitimate but invalid insurance card with a current date that’s lapsed for lack of payment) and that insurance companies are just digging in their heels to keep from losing the unearned revenue they’ve enjoyed to date.

Who’s right? That’s up to you to decide.

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Pay As You Drive for Washington Car Insurance WA

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American Coverage Rates in USA

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