Pay By The Mile Insurance

By Author: Marcus Stalder
Total Articles: 491
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In one of the more extraordinary moments in the Presidential Candidate Debates, Rick Perry came out fighting, citing the example of Galileo to argue that we shouldn't trust climate scientists. In fact, when you look at what he actually said, "Galileo got outvoted for a spell". Does this mean we're back to believing the sun goes round the Earth? Ah well, such are the things people say when they get on national television. For the scientists who have moved beyond the idea of the Earth being flat, they propose we are changing the climate by continuing to pump vast amounts of carbon dioxide into the atmosphere. One of the ways we do this is by driving so many miles in vehicles filled with expensive gas (that's gas in our sense of the word and not to be confused with liquid petroleum gas or autogas). No matter whether autogas is more environmentally friendly, the underlying fact is we drive too many miles.

In a way, it's not our fault. We have an enormous country and, when gas was cheap, it never occurred to us to design our towns and cities for efficiency. If you look at Europe, many major cities have integrated public transport ...
... systems that rely on local citizens to do some walking (or, in some cities, cycling). Anyone seen walking in one of our cities is considered either one of the urban poor or mentally disabled. With very poor public transport inside cities and an even worse provision between cities (now including the option to be molested when trying to board an airplane), everyone relies on the "car". It's a necessity of life.

Insurance is all about sharing the cost of loss among all drivers. To make this as fair as possible, the insurers offer discounts to those who are considered the safest. This encourages everyone to avoid accidents. It's a statistical fact that, if you only drive a few miles a week and avoid driving at commuting times and at night, there's a lower risk of an accident. It's the same for those who live out in remote rural areas. With very few other vehicles on the road, the chances of a collision are small. Until now, insurance companies have refused to trust people to make an honest declaration of their mileage. But, with new technology available, your vehicle can transmit information about when and how far you drive. It can also tell the insurer how well you drive, e.g. send a message if there's sharp braking and swerving from side to side.

This type of insurance relies on technology built into some new vehicles. Alternatively, insurers are producing black boxes that monitor your driving. If you agree, you pay a premium rate directly related to the number of miles you drive. This is auto insurance that directly rewards people who represent the least risk. So, if you don't use the car for long journeys, this is for you. You may be retired, a homemaker, unemployed or disabled. No matter what the reason, if you prove a low number of miles, you can save up to 40% on the standard auto insurance rates. The next time you are planning to renew, look out for the options. It can save you a lot of money.