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How To Save Money With Pay-Per-Mile Auto Insurance And What Drivers Need To Know About This Policy

By on August 5, 2021 0

LOS ANGELES (PRWEB) 05 Aug 2021 has launched a new blog post that features some information about paid per kilometer auto insurance and its benefits.

For more information and free auto insurance quotes, visit /

Auto insurance paid by the kilometer is a type of insurance policy that consists of a base rate calculated using factors such as the driver’s age, credit score, driving history, type of car the insured drives, gender and other factors, and the number of kilometers driven by the insured. To calculate the number of kilometers traveled by an insured, insurers use an on-board device that tracks the number of kilometers traveled each month. Drivers who do not drive at all will only pay the base fare. However, drivers who venture onto open roads will pay a monthly premium that reflects their mileage which includes a daily mileage cap above which the insured will not be billed.

Policyholders who are considering switching to a pay-per-kilometer plan should consider the following:

  • Who should get this policy. The per mile basis of payment on which premiums are calculated makes this policy an unappealing option for policyholders who drive a lot. For this reason, people who drive a lot of miles are less likely to purchase kilometer insurance. On the other hand, it’s a great option for people living in urban areas or for people who don’t have to use their cars as often.
  • How much money drivers can save. It all depends on the number of kilometers traveled. To see how much they can save, policyholders can get quotes from traditional auto insurers and pay-per-kilometer insurers and use their estimated annual mileage as a predictive marker to calculate how much each option could cost them.
  • The differences between the Pay Per Mile and Pay As You Drive policies. Pay-as-you-drive policies use a telematics device to track the driver’s driving habits. The devices track speed, hard braking, and a few other factors to determine how much a driver can save for safe driving. On the other hand, pay-per-mile insurance is only calculated using a base rate and a rate per mile. Carelessness of a driver does not affect the cost of insurance per kilometer.
  • Can it be canceled. Although policyholders can cancel their pay-per-mile policy at any time, many providers charge a fee for doing so. However, these charges can be waived if the policyholder switches to a traditional unlimited miles policy.
  • What it covers. A pay per mile policy offers the same coverage as a traditional policy. However, while a traditional policy charges a monthly premium based on factors such as age, gender, car make, model, driving history, etc., a pay-per-kilometer policy charges individuals. insured a considerably reduced base charge as well as one of the costs which are generally capped at a certain limit of mileage per day.

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