A lot of drivers may have heard of this new concept called Pay As You Drive car insurance, an option that a number of car insurance companies are currently offering. Basically, this option will let drivers pay sliding rates ,which are based on several things, such as how much they actually drive their vehicles. So, if you only drive your car when you are going on errands and average, say, fifteen miles each week, you will not have to pay nearly as much as a commuter who drives an average of sixty miles a day.
In order to come up with the rates for Pay As You Drive insurance, the company will look at your odometer and track the number of miles you drive during a specific period. They will thus be able to estimate the amount you drive a week, and then base your premium around how many miles you drive.