Comparison-Shopping Saves You Money


Good news for California drivers – sometime this year, new regulations will take effect on auto insurance. While most of us knew that comparison-shopping is a smart thing to do, some people are actually enjoying reduced rates.

New Soon-To-Be Options for Motorists

Pay-As-You-Drive is no longer a new concept. This pricing structure has been in placed in Texas for almost two years already. The only problem is that many states were hesitant to copy the same structure. However, in the recent changes made in California, this type of pricing structure has finally arrived. Drivers can now save on auto insurance premiums based on their actual mileage.

Indeed, this is good news, particularly in a place with too many cars, high pollution levels and intense traffic congestion like California. If you live in California, and want to save money, you can just use the public transportation, and let your vehicle sit on the garage for a while.

Will There Be More Benefits Than This?

For us to understand better is to look at our history. How much are you willing to change in return for an economic incentive? Like any other nations, America experienced mandatory gasoline rationing during the Second World War. It also happened in the 1970s, but interestingly, this didn’t hamper the public to drive less.

We can’t help but to notice the undying love of the American people to these machines. Interestingly, they’re willing to give up meat, reduce their sugar consumption or grow their own vegetable in their backyards. However, when it comes to gasoline rationing, they’re willing to do everything to avoid it, even if it means doing fraudulent acts.

So it’s here, the Pay-As-You-Drive scheme with high hopes of instilling into the driver’s mind that, by driving less, you pay less. The premium cost will be based entirely on the car’s actual mileage. As more and more people are drawn away from the busy metropolitan streets, there will be less traffic, and congestion, accident rates would scale down, and best of all, it lowers the level of pollution in the air.

If you live in California, and you’re interested in the Pay-As-You-Drive, there are only two companies to go with – Automobile Club of California, and State Farm. For both these two companies, this is a big step, and other insurance providers will do the same in the coming months.

To determine your mileage, your odometer readings are required. If you buy a policy with them, you’ll need to provide this data. Newer car models with sophisticated electronic systems such as OnStar usually provide their data at regular intervals. If you own older cars, mileage readings are obtained during the smog inspection tests.

Just recently, State Farm released a report indicating that a driver with 2,000 miles or less will be able to save money of up to 45% each year. Recession may be over, but certainly, the effects of it still linger. California drivers will surely welcome this new offering, and will now spend much more time comparing quotes more thoroughly.