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Pre-paying For Your Car Insurance

Prepaying for your car insurance is a requirement in some ways for most policies. Most automobile insurance providers require a deposit of some sort to start a plan, and some require that you pay for both the first and last month of your policy in advance. Over the years, many different types of car insurance policies have been offered by auto insurance companies.

Whether you are looking to purchase a plan from a top automobile insurance company, or are looking into smaller companies that might provide different options, there are many routes you can take to get a top car insurance plan. Also, paying for an entire six months or one-year policy in advance will often net you hundreds of dollars in savings. Sometimes, however, a pay-by-the-mile insurance policy is the best option for drivers. Here, one of the unique types of policies will be explored, the pay by the mile policy.

The Company that Offers Pay by the Mile Car Insurance

There is really one dominant company that offers pay-by-the-mile automobile insurance policies. This innovative type of prepaid car insurance is provided by a company that is located in Texas, which is currently the only state that has passed laws that allow insurance to be sold per mile. This type of policy has been sold for over 15 years here, by a company called MileMeter. Over the years, MileMeter has seen a lot of growth, and other companies have looked into providing this type of insurance since that time. The company has a significant amount of capital, which helps it get good ratings and have success with reinsurance.

There are many short-term benefits to getting an automobile insurance policy from Mile Meter. While there are many long-term benefits as well, the success that the company has seen can in some ways be attributed to the short-term benefits of the car insurance policies that it offers.

Even though they charge by the mile, they do not require drivers who purchase policies to have a GPS or other type of tracking device to determine how many miles have been driven. Many people like how the company does not make people jump through hoops like these, and there are other great ways that the company is simplifying the process for people who are looking to purchase paid by the mile car insurance. They do not require a credit check, nor do they require a Social Security number, to get this type of insurance.

How Pay-by-the-Mile Car Insurance Works

MileMeter does not operate like the other car insurance providers, and this has been a big benefit and source of pride for them. The policies that they offer are typically best for people who do not drive a lot, like people who are going to college, work from home, are retired, do not have a daily commute, or are living in areas where people bike, walk, or utilize public transportation. The policies that are offered by MileMeter are within the range of 4,000 and 6,000 miles for a six month policy period.

The Long-Term Benefits of Pay-by-the-Mile Insurance

There is a lot of flexibility to getting a policy with MileMeter. For example, if you are in need of additional miles because you plan a trip, are driving more than you expected, you pick up extra work, or for any other reason, you can purchase additional miles for your policy. Also, if you do not use all of the miles that you have purchased, leftover miles over 1000 are rolled over to the next month. The company utilizes pictures that drivers submit of the car's odometer to determine the mileage count for the policy. This can be uploaded to the policyholder section of their online account.

Another benefit of a MileMeter policy is the awareness of how many miles people are driving. A policy can also encourage people to walk, use public transportation, or take a bicycle more, which some policyholders like. Lastly, for people who do not drive much, pay by the mile policy can help them save a lot of money. If you are living in a state that allows for this type of policy, doing research to determine if it is the best choice for you is recommended.

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The idea sounds great. What a pity I do not live in Texas. Being an adherent of a healthy lifestyle I drive infrequently, so this could be a chance to save some money on insurance policy

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