AUTO INSURANCE ARTICLE

Drive Less, Pay Less for your Texas Auto Insurance

By: cradel_book

Texas is hailed as “the first state in the U.S. to have a "by-the-mile" choice of auto insurance that gives drivers the opportunity to save money while also protecting the environment”. As a TX resident, you can drive less and pay less with the introduction of pay-as-you-drive (PAYD) auto insurance.

Traditionally, auto insurance is a fixed expense. It is like an eat-all-you-can buffet. You pay an amount no matter how much you eat. So, people pay the same amount no matter how much or how less they drive. True that auto insurance companies provide discounts if you drive less, but discounts are still discretionary on the company’s side. With the PAYD, it is already a choice that drivers can pick.

Today, it is considered as one of the best solutions to reward drivers who drive less, and making insurance more equitable. This new insurance scheme is expected by the motoring enthusiasts to significantly reduce driving--and clear the roads of congestion, collisions, and pollution that driving entails. PAYD auto insurance will now give a respite to those who oftentimes take public transport or join a carpool, from paying the same auto insurance rate. If you live near you work, or you work from home, or you have a secondary car which is rarely driven, PAYD is a better choice for your coverage.

PAYD auto insurance is hailed increasingly by environmentalists and climate change watchers as a feasible step to reducing annual fuel consumption by as much as 10 percent, without the drawback of higher insurance for average drivers.

Around 10,000 miles a year is the average person’s driving capacity. For this, approximately $1,000 is paid each year for insurance. With these numbers into account, auto insurance then costs about 10 cents for every mile. With the PAYD auto insurance scheme in Texas, drivers will have more incentives to reduce their mileage by driving less. Let’s take another example, if a driver joins carpooling for a 40-mile roundtrip commute everyday, she could save $4 a day (more than $800 a year) in insurance costs. The PAYD rate does not contradict existing risk-based system, as it can be adjusted. The per mile rate for an accident-prone teenage boy can be doubled while a middle-aged parent’s per mile rate could be halved due to good driving history.

An Environmental Defense Fund study reports that this insurance scheme could save the state of California of 5.5 billion gallons of gasoline and about $40 billion in car-related expenses between 2009 and 2020. In related study by the Brookings Institute, potential savings of about $270 per year for every household can be realized. The PAYD scheme is also seen to be of direct benefit to low-income families, as those in the lower-income typically drive lesser miles.

So drive less and pay less while in Texas. It is a great way to cut down on your auto insurance costs, and to practice green citizenship.

Texas is hailed as “the first state in the U.S.

to have a 'by-the-mile' choice of auto insurance that gives drivers

the opportunity to save money while also protecting the environment”. As a TX

resident, you can drive less and pay less with the introduction of

pay-as-you-drive (PAYD) auto insurance. Traditionally, auto insurance is a fixed expense.

It is like an eat-all-you-can buffet.

You pay an amount no matter how much you eat. So, people pay the same amount no matter how

much or how less they drive. True that auto insurance companies provide

discounts if you drive less, but discounts are still discretionary on the

company’s side.With the PAYD, it is

already a choice that drivers can pick.