Driving With Usage Based Insurance

There are many different types of auto insurance policies and companies out there. It can be difficult to choose which insurance company to go with, based on all the options that you are given. There is an innovative type of insurance company that is now available in South Africa, and the insurance is based on how far you travel each month. This insurance is called usage based insurance or alternatively, pay as you drive insurance!

How this type of insurance works is that you are charged only on how far you travel, which seems to be a very fair way of calculating motor insurance premium payments! There will naturally be a small fee that is compulsory for you to pay every month, which is calculated based on your risk factors and protects your vehicle in case of theft or fire damage. You will then have a cent per kilometre rate that is also calculated purely on your risk profile. So what is your risk profile determined by? Firstly, it is determined by your age, gender, the car you drive and your accident history. Other factors such as the security on your vehicle are also large contributing factors to your premium. Luckily you can increase the security on your motor vehicle to try and lower your premium.

Many people prefer usage based insurance as they feel it is a fairer way of calculating their insurance premiums. With usage based insurance, you will know that you are only going to be charged for the distance that you actually travel! The insurance company knows how far you travel each month by making use of a tracking system that is installed in your vehicle when you sign up for the usage based insurance. This tracking system not only tracks how many kilometres you have travelled each month, but is also an added security measure. With a good tracker installed in your vehicle you will have the peace of mind in knowing that if your car is stolen the tracking company will most likely be able to trace it. Tracking systems are usually installed in such a way that it is virtually impossible for the thieves to find it.

If you feel that you have to pay an unfair amount for your monthly motor insurance premium, then usage based insurance is probably for you. This way you will know that you are only paying what you deserve to. A good usage based insurance company will help you asses and determine how far it is that you are travelling each month, so that you know roughly how much you can expect to pay. If you are lucky, you will have a good car insurance company which allows you to drive a certain amount of kilometres free each month before you even have to start paying!

You can easily find a good usage based car insurance company on the internet, simply by conducting a search in Google for usage based insurance. Be sure to obtain a few quotes before you settle on a specific auto insurance company.