Pay As You Drive Car Insurance

I don’t know about anyone else out there, but I am sick and tired of paying so much for car insurance. I rarely drive, I have an impeccable driving record, and I am a careful and defensive driver. So why do I have to pay so much? I wish that American car insurance companies would follow the lead of U.K.-based Norwich Union, who had created a new car insurance policy that charges drivers based on actual miles travelled. The system works by transmitting a signal — via a satellite navigation system — to Norwich Union that tells them the car usage of each policyholder. Policyholders are charged a low, flat rate monthly charge as well as a incremental per-mile charge, and are billed via a monthly itemized statement. Norwich Union even throws in a satellite navigation system and a speed camera detection system when you sign up. This car insurance pricing structure creates great incentives– it rewards drivers who choose not to drive as much, leading to environmental benefits and providing a mitigating factor for traffic jams.

Via PSFK