With the cost of the fuel increasing by the day, an increasing number of people are limiting usage of their cars. There are certain states in the United States where people with limited driving can benefit. North Carolina does not fall under this list of states. However, there are signs that this may change in the near future. The General Assembly in the state of North Carolina is considering a bill which can bring a sigh of relief to people who drive less here.
One of the sponsors of the bill, state Senator Bob Rucho, also a Republican, said that as per the current laws governing auto insurance, there is no scope to offer special discounts to people who drive less. The new bill, if approved, will allow auto insurance providers in the state to offer discounts that they are currently unable to offer due to certain limitations.
Evidence suggests that an increasing number of Americans are opting for drive less as the cost of gas is trending northward. One of the surveys conducted by MasterCard Spending Pulse has revealed a drop in gas sales for the last month and a half. This declining demand for crude oil pushed the prices low by $100 per barrel.
Pay-as-you-go insurance policy is not very different from any other usage based policy. The only different is that customers need not pay a flat fee that they do for most other policies. With the pay-as-you-go policy, the premium is determined by how many miles you drive a month or year, which is more or less like the electricity or cable bill.
State Farm Auto Insurance that is currently offer the ‘pay-as-you-go’ policy in certain states of America is backing this bill being considered by the North Carolina Senate. The provider currently underwrites millions of policies each year in North Carolina. Speaking on behalf of the company, their spokesperson, Kim Conyers said that the pay-as-you-go policy when implemented in North Carolina can be beneficial to a number of customers who currently drive less, but pay more than needed due to certain legal limitations.
State Farm policy holders in the state of California can save up to 2% if they drive 16,500 miles annually and 5% if they drive 14,000 miles. Customers who drive 10,000 miles or below can save up to 11% and those who drive 500 miles or lesser can save close to 45% on their auto insurance premiums.
