The Brookings Institution tells us that their studies find that 2 out of every 3 households in the United States would save money if they switch their auto insurance to a Pay As You Drive plan. Pay As You Drive insurance is based on the numbers of miles an insured’s car is driven. They give you an incentive to drive less and lower your premiums.

Anyone can consider switching to a Pay As You Drive insurance program, but these programs really benefit low income and low mileage drivers. Low income drivers tend to also be low mileage drivers because of the high costs associated with frequent driving. While the amount of miles driven doesn?t impact premiums under a more traditional insurance program, high mileage driving does require spending more money on gasoline and auto maintenance and repairs. There is also more wear and tear on your vehicle, which means vehicles will need to be replaced more frequently.

Another benefit of Pay As You Drive is fairness. Under traditional coverage, low-mileage drivers subsidize the high-mileage drivers who pay the same premiums, but, because of how much time they spend on the road, are more likely to be involved in crashes. This inequitable subsidy is removed under Pay As You Drive. Higher-mileage drivers pay higher premiums, and lower-mileage drivers pay less.

Of course, not all low-mileage drivers are low-income drivers. Many people don’t drive just because they care about the environment. The fewer miles people drive, the less automobiles contribute to greenhouse gases, and the less congestion there is on the road. Any driver interested in protecting the ecology should also consider Pay As You Drive.

Drivers interested in saving money in a tight economy would also benefit from Pay As You Drive insurance. Since the insurance premium costs are based on the amount of miles driven, there is an incentive to drive fewer miles because that?s how you save money. Drivers who utilize Pay As You Drive insurance also spend less money on gas and auto maintenance due to their reduced driving. And don?t forget that the less you drive your vehicle, the longer you can keep it after you pay for it. Vehicles tend to last longer if we drive them less.

Pay As You Drive insurance can be a benefit to almost any driver. Drivers interested in learning more about how Pay As You Drive insurance can save you money, protect the environment and help your vehicle last longer should contact a qualified insurance provider. This provider can answer your questions and help tailor a specific Pay As You Drive insurance program to help meet your driving and insurance needs. Remember, the average U.S. household can save $270 a year on insurance premiums just by switching to Pay As You Drive insurance.

Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.