Budget Car Insurance

For low mileage drivers, the best budget car insurance is possibly the Pay As You Drive policy, commonly known as PAYD. It has set a revolution in the car insurance industry. You can now save money by driving less.

Currently, the insurance trend is low mileage drivers receive minimal discounts for driving less, but with Pay As You Drive you get a financial incentive for driving less. It also reduces driving and congestion by 10 to 12% approximately. It is an innovative concept related to car insurance which is calculated per mile you travel and reduce air pollution and other environment impacts.

Using the latest GPS (Global Positioning System) technology, the insurance companies are able to calculate monthly insurance premiums based on how often, when and where you drive. Which means your monthly premiums are based on your individual driving habits and not everyone else's. So, "Pay As You Drive"™ insurance could offer you a fairer deal and give you increased control of your premiums. With the traditional car insurance policies, low mileage drivers like a carpoolers, low-wage earners etc. subsidize high mileage drivers, which is not really fair. Above all, PAYD is a most just and a budget car insurance for many drivers.

With Pay As You Drive insurance not only you have increased control of your premiums, you also benefit from a range of other in-car features. This includes round the clock access to a personal assistant via your in-car Assistance Button, which can provide you with help and support in the event of an accident or breakdown, a free 30 day trial of satellite navigation and a free 30 day trial of speed camera detection. You will have the opportunity to purchase either of these services after your free trials have finished.

PAYD resulted out of a research with which it was evident that low-mileage drivers are a large untapped market. Pay-as-you-drive insurance is very simple. Drive less and pay less. A driver covered under this insurance will get a per mile rate which is also based on other rating factors currently in vogue. It could be the geographic location, vehicle type and the driver's crash history, but in spite of this, PAYD may still be the best budget car insurance for defensive drivers.

In some states like Arizona, Indiana, Illinois and Pennsylvania, there's a new mileage discount program which is designed in collaboration with both GMAC Insurance and Onstar vehicle service. All those drivers with a GM Vehicle and an OnStar service can earn an additional discount based on the miles they drive. The discount offered would be quite significant if the vehicle mileage is low. From an environmentalist point of view such an insurance motivates one to drive less and thus reduce environmental pollution.