Also known as pay-as-you-drive (PAYD), this insurance plan lets you pay based on how many miles you drive. For some drivers who use their automobiles sparingly, it can be a good financial choice.

There are some people who drive their cars so sparingly that they may benefit from pay-per-mile insurance plans. If you only drive your car once a week to get groceries, of if you live in a big city and mostly use public transportation, or if you only drive to church on Sunday, then you may fit into this category.

If you are one of the fortunate people who don’t have to drive a lot, then you may want to opt for a low-cost insurance option that mirrors your limited driving. Pay-per-mile insurance (also referred to as pay-as-you-drive) directly reflects the actual miles that you drive.

Be aware that you must be honest with your insurance company regarding how many miles you actually drive. There are many ways a company can calculate how many miles you are actually driving—including GPS and odometer readings. Auto insurance companies may also want to use other devices to track how many miles you drive.  In this case, honesty is the best policy.

Pay-per-mile insurance serves as a solid investment for drivers that only drive a limited amount. If you decide that you want to purchase this type of insurance, you should be aware that your rates may increase depending on where you drive, and how you drive. You may also have to pay out of pocket for some sort of monitoring service.

No matter what kind of plan you purchase, it is always important to carry the proper amount of insurance to fit your needs. If you are in doubt of how much insurance you should carry, ask your provider or agent. Driving without proper insurance is dangerous and illegal. If you are caught without it, you could face steep fines, and higher auto insurance quotes in the future.

Save Today Auto Insurance makes it easy to buy affordable auto insurance with our easy and free car insurance quote finder. By comparing different quotes from the top insurance companies in the U.S., you can find the best deal for you and your loved ones. We do all the hard work for you. Driving without insurance just isn’t worth the risk—make sure that you are protected, and save money in the process by using our service today.