Pay As You Drive Insurance

Auto insurance companies are always looking for new ways to calculate auto insurance costs and make new policies. Japanese Auto Insurance Company AIOI put out a new system Pay As You Drive in 2005. This type of insurance is very different from the standard flat-free insurance, and is even different from the similar usage based insurance. Pay As You Drive allows you to reap the benefits of comprehensive car insurance cover, but paying for only the miles that you plan to drive.

For the miles that are not used within a given policy time, if the auto insurance company allows the customer to renew their policy, they can use those miles that were paid for in the previous contract and use them in the next contract that they sign with the auto insurance company. If the miles are completely used before you purchase more miles, than your coverage does not disappear, but is limited to Fire, Theft, and Third Party for the remainder of the contract. If you are looking to find out more things about auto insurance then go to Birmingham Auto Insurance and learn everything you need to know.

photo credit: FulviaFiend

photo credit: RickC