Top Who Needs Pay-Pay-Per Mileage Coverage

Generally speaking, you could see a reduction in your premiums through pay-pay-mile insurance if you:

• Don't drive much.

• Avoid driving during peak traffic hours.

• Drive in uncongested areas.

• Practice safe driving habits.

The more that apply to you, the greater the chances you could benefit from this coverage, and the higher your potential savings.

Top Where to Get Pay-Per-Mile Coverage

While this type of coverage has been spreading fairly quickly throughout the country, it's still only available in some states and through a few insurance companies. If your carrier doesn't provide the coverage, do an online search for insurers that offer pay-per-mile insurance, and then see if they allow this program in your state. Or, just call the toll-free numbers provided by insurance companies, and ask a representative. Your state insurance department may also be a good source of information on this matter.

Top How Much Pay-Per-Mile Coverage Costs

While one major study showed that an estimated two-thirds of Americans households would save about $270 per car by using this type of insurance, it's not the best choice for everyone. In fact, if you don't fit any or most of the categories listed above, your rates could increase, based on your driving habits. Plus, depending on the insurer, you may have to pay for the monitoring device or service.

But, for drivers who rarely use their cars, pay-per-mile coverage could be a blessing, especially for those with low incomes. Insurance companies, meanwhile, realize a reduction in the miles driven per customer leads to a disproportionate increase in their profit margins, so these programs are money-makers for insurers.

And, from an environmental view, a decrease in car use means fewer emissions entering the atmosphere.