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Should We Endorse Pay-Per-Mile Kansas Car Insurance?

Posted in: Car Insurance Articles
By: Clifford F. Berman
Posted on: May 26, 2009 - 2:57:22 AM

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There are a lot of factors to consider when you're shopping around for a high quality Kansas car insurance policy-namely, what can you do to get the best

With pay-per-mile car insurance you can save your money for more important things.

possible coverage at a price that won't leave your bank account shriveled up like a prune? Unfortunately, with today's current pay-per-car insurance policies you're stuck paying the same price to insure your car whether you drive 2 miles a week or 2,000. By supporting a pay-per-mile car insurance policy Kansas residents could be rewarded for their driving habits rather than punished for everyone else's.

Pay-per-mile car insurance is expected to reduce car emissions and pollution by up to 12% by encouraging drivers to stay off the highways.

There are a number of benefits to a pay-per-mile Kansas car insurance system. People spend less time on the roads to save money, which helps the environment by limited the amount of emissions released into the air. And by reducing their driving time they also reduce the amount of gas they have to buy, which has the two-fold benefit of putting pressure on the oil companies to cut their prices while at the same time helping driver budgets. (With summer right around the corner and gas prices slowly but surely crawling up again that's a benefit that no one can live without.)

More important than its environmental impact, however, is the impact a pay-per-mile system will have on the car insurance industry. Right now car insurance companies are riding the waves of success. They're able to decide whether a driver ranks as high risk or the next best thing to Andy Griffith, and they get your money in premiums whether your car's out on the town every night or tucked away in your garage (or even worse, in the shop pending repairs). There's little in life that's more frustrating than having to pay your Kansas car insurance provider every month for a car that you can't even drive, which is where pay-per-mile insurance comes in.

Much like your cell phone, with a pay-per-mile system you "prepay" for your insured mileage. When you run out you buy more or your insurance policy lapses, a process that is tracked through your odometer and a specialized GPS system attached to your car. Your insurance card has your current insurable mileage on it, so there's no fooling the nice police man if you get pulled over and are fined for driving without insurance.

This system is expected to be particularly beneficial to low income residents, whose current inability to afford the high rates they are charged by having multiple drivers on a vehicle (making the vehicle "high risk" is strongly contributing to the number of uninsured drivers out on the roads. A car insurance policy that allows them to minimize their driving time and be rewarded for it is precisely the answer most of them are looking for.

Despite its inherent benefits the option to purchase a pay-per-mile insurance policy is only available in a handful of states: Arizona, Indiana, Illinois and Pennsylvania, to be precise. It's only a matter of time before economic issues push the matter back into the open, however, and recalcitrant insurance providers who fear losing the easy income they had before will find themselves with no choice but to move forward with this unique approach to revolutionizing the car insurance industry.

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Should We Endorse Pay-Per-Mile Kansas Car Insurance? - May 26, 2009 - 2:57:22 AM

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