Smart Quiz! What trick can slash car ownership costs almost instantly?
Car insurance is more expensive than ever. Even if you’re a senior with a flawless driving record, it can still be difficult to afford your insurance payments. This is an even more difficult pill to swallow if you rarely drive or only use your vehicle to run errands and visit friends who are close by.
Saving money on your car insurance can be complex. The best outcome depends on many factors, including your age, driving record, or in some cases, whether you’re male or female. But there are options outside of traditional car insurance to help you reduce costs, including Pay-By-Mile policies designed to make insurance cheaper if you drive only seldomly or for errands.
1. Pay-By-Mile insurance plans let you pay less for your insurance by assigning you premiums based on how often and how far you drive. These plans weigh your level of risk against your driving frequency; if you’re not out often, you may find it much cheaper than a standard monthly premium policy.
2. Pay-By-Mile is a suitable choice for people who mostly drive locally to complete errands such as groceries, visits to friends, appointments or school. Because your mileage stays low, your premium stays low, too. Review your long-term driving history, not just recent mileage trends, before you choose a Pay-By-Mile plan. You may not realize how often you drive long distances through the year until you sit down and add it up. Multiple long distance trips could mean the difference in whether or not you qualify for a lower premium.
3. Some insurance companies charge a small premium for the privilege of making monthly payments. If you happen to bounce a payment, they also tack on NSF fees and late fees. With Pay-By-Mile, you start with a much lower and more affordable insurance premium paid on a monthly basis, but pay just a few cents per mile driven. You can scale how often or how far you drive month-to-month based on your budget.
4. Depending on how much you drive, Pay-By-Mile could save you up to 50 percent on your car insurance. This significant savings can be extremely empowering for someone on a fixed income, such as a senior in retirement or a university student.
5. Even if you drive long distances a few times a year, you might still save by choosing a Pay-By-Mile policy. For example, Metromile reports that drivers traveling 10,000 miles per year still saved around $300 on their yearly premiums. Those driving just 2,500 miles saved an incredible $650, making it much easier to budget for a vehicle.
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