Pay As You Drive (PAYD)

HomePersonal InsurancePay As You Drive (PAYD)

 

In today’s new economy families are looking for every way possible to cut back expenses.  Many families have already looked at ways to decrease utility costs, trim nonessential items from the budget and reduce fuel consumption.  What many families don’t know is that by reducing the annual mileage drive, to save on fuel costs, there is a new insurance program called Pay As You Drive (also known as Usage Based Insurance or UBI) that could save them even more money.  It is estimated that with Usage Based Insurance programs two-thirds of households are saving money on their insurance based on the amount they drive.  Pay As You Drive as an ideal insurance program in our current economic climate and our common mindset to cut costs while demanding increased value in what we are purchasing.

Benefits of Pay As You Drive:

  • Paying for auto insurance based on the mileage driven.
  • If Pay As You Drive is accepted by the consumer base as a country we can reduce 8-12% of mileage per participating vehicle, lowering our carbon emissions, and gas consumption (The Brookings Institution – Pay-As-You-Drive Auto Insurance Report)
  • The ability to monitor your vehicle, including your environmental impact, carbon footprint and fuel efficiency.
  • The ability to help coach your teen drivers. You can set-up speed, late night and location alerts to let you know how your teen is driving.
  • If you’ve been considered a “high risk” driver to previous insurance companies, Pay As You Drive allows you to take positive steps in reversing that “high risk” analysis with your driving specific driving habits.
  • Savings of up to 25 percent on your annual insurance premiums based on your driving habits (this is not an exact amount and is considered an estimate that would be based on many different factors.)

Pay As You Drive’s model is unique and benefits all kinds of different drivers, for further information please check out our PAYD FAQ’s page.  As always, if you have individualized questions or would like additional information do not hesitate to contact us.