Mileage based car insurance in the USA
Recently, the USA has made it legal for car insurance companies to make insurance policies based on the mileage that a person yearly drives.
There are many car insurance companies in the USA that were willing to provide insurance policies based on car mileage. However, just for the sake of official orders, the companies were not taking any actions. However, after the official announcement, many of such companies have started testing programs across the country to get an idea about the interest of customers. There is a mix of positive and negative feedback from customers, but the companies are willing to precede this new policy.
Mileage based insurance
Following are the factors in a mileage-based insurance policy:
Always consider the mileage
Insurance companies always keep track of the driving that their customers do when they are working with you on the mileage policy. The amount of distance that a person covers every year will be responsible for the fluctuation of the rates of mileage. In addition to this, the place and time of mileage also have a significant impact on the rates. However, with the advancement of this new trend, new policies are much more precise, and the charges are based on the actual mileage that is covered instead of the estimation. It is a great new initiative that is attracting more people towards this new policy.
Electronic tracking devices
There is a discussion about tracking the mileage through the satellite system. However, many companies offer a small device to the customer that is responsible for tracking the mileage. This device must be connected under the steering, and it will calculate the exact mileage along with the time of the day that you are travelling. For instance, if you are travelling at night, then it might be riskier than your travelling in the day. Therefore, these devices are a new hit in this policy of car insurance using mileage. In addition to this, you won’t have to file a report to the insurance company regularly.
The device will track additional information
The worst thing about the tracking device is, it will track the driving data along with the mileage data, which is not suitable for many drivers. For instance, it will track the speed of your car, the way you apply the brakes and many more such figures, which can increase the rates of your insurance plan. In addition to things, the things that you always want to hide from the insurance company will no longer remain a secret after the installation of such a device.
Higher fuel prices lead to less driving
Due to high fuel prices in the USA, people have cut back on their driving. The mileage-based policy is working perfectly for such people who were utilizing it before because they only have to pay for the covered mileage. On the other hand, people with other insurance policies still have to pay the whole amount irrespective of the usage of their cars.
