My name is James Frank. I’m glad you stopped by my website. I’ve always carried automobile insurance because it’s the law. I never paid much attention to my coverage; I paid my premiums and like most folks moaned about the small annual increases. One day I was driving in a city I wasn’t familiar with and was looking for addresses on the buildings. All of a sudden I look in front of me and I’m about to hit another vehicle. I had run a red light and ended up totaling not only my car, but the other driver’s car, too. I have never been so grateful for my car insurance. Fortunately, there were no medical bills, but two cars had to be replaced. It turns out that I have excellent coverage. I’ve since learned lots about car insurance and hope to share some of it with you.
If you are a low risk and occasional driver, the idea of paying the same for car insurance as someone who drives hundreds of miles a week can seem a little insulting. Switching to mileage based car insurance definitely sounds like a good way to save when you rarely use your vehicle. However, there are a few pitfalls and concerns about this type of insurance you should consider before officially making the switch.
In order to track how many miles your bill should include, all the insurance companies offering these plans require you to plug a USB-type device into a diagnostic port below your steering wheel. These recording devices send your mileage and other driving habits to the company over a wireless signal, but that information is easily intercepted by strangers if the company skimps on encryption. Your driving data can be used to track your movements and even determine when you're away from home so a robbery can take place.
Sudden Usage Increases
You only drive a few miles a week right now, but what if a family member ends up in a hospital one state over and you want to visit them a few times a week? Sudden increases in your driving will cause a similar uptick in your bills. This could lead to financial instability if you don't expect to receive a substantially larger bill at the end of the month. Try looking for a plan that caps out at the amount you'd pay for regular insurance so you can't accidentally run up a big bill during an emergency situation.
Even plans that advertise as only depending on mileage usually take your other driving habits, like braking and speeding, into account when determining your rate. This leads to higher costs for anyone who regularly drives on the risky side, no matter how few miles they are traveling. There is no recording of the traffic conditions either, so your quick stop due to a sudden lane change ahead of you still gets recorded as a bad driving habit and raises your rate.
Finally, not all states allow this kind of car insurance yet. Most insurers do their duty and only advertise and accept members from the right states, but others may extend coverage they're not legally allowed to provide and leave you in a loophole. Always check the legality of the insurance plan you want in your home state before assuming the company will warn you if it's not allowed in your area. Check out companies like H and M Insurance for more information on available auto insurance.Share
25 June 2015