What Is Pay As You Drive?

Many of the largest auto insurance companies offer an interesting way to save money—if you’re willing to let them track how you drive! It’s called pay-as-you-drive insurance. Here’s how it works: If an insurer considers you a safe driver--depending on factors such as how hard you brake, how often you drive late at night, and your mileage—they reward you with a discount.

But a new insuranceQuotes.com survey shows that many Americans miss out on these discounts because they’re never even heard of pay-as-you-drive insurance programs – or they have concerns about how insurers will use their driving data. We took to the streets of downtown Burlingame, California, to find who’s heard of pay-as-you-drive insurance – and whether they’d be interested in enrolling.

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Laura Adams is a personal finance expert, award-winning author, and consumer advocate. As Senior Insurance Analyst, she represents insuranceQuotes in the media and works to make sure consumers protect their financial futures by having the right kinds of insurance.

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