Q: What is pay as you drive insurance and is this type of car insurance available in all states?
A: Pay as you drive auto insurance is a concept that has recently been introduced in states like California and Florida, but may not be available in all states. Pay as you drive insurance is not so much a “new type of car insurance”, as it is a discount program that allows policyholders to qualify for money saving discounts.
For example, Progressive Insurance Company has recently offered a pay as you drive discount program to its customers in Florida. If Progressive Insurance customers would like to take advantage of this program (to see if they may qualify for the discount), Progressive will provide them with a device to install in their vehicle, which will measure how much they drive. After a thirty-day period if the customer meets the eligibility requirements of the auto insurance discount program, they may be eligible for up to a thirty percent discount. If you are interest in learning more about pay as you drive auto insurance discounts, contact your insurance provider to see if they offer a similar discount program.