If you live in Texas and youíre in the process of looking for car insurance for your new or used Dodge Ram, chances are youíre also looking for ways to save money on your policy. Luckily for you, as a Texas resident you have an option that drivers in most other states do not: Pay-Per-Mile Insurance. As opposed to policies that are based on fixed premiums, Pay-Per-Mile insurance gives you the option to have your insurance premium set based on the amount of miles that you drive. People who donít drive a lot will end up saving money overall, while those that use their car frequently may end up paying more. Hereís how Pay-Per-Mile insurance works:
- Just like a regular policy, you start by getting a car insurance quote (this time on a per mile basis rather than yearly or bi-yearly)
- You purchase a specific amount of miles each six months based on how much you think youíre going to drive.
- If you go over your allotted mileage amount, you can buy more miles. If you donít use all of your miles, you can usually roll them over into the next premium period.
- The way that companies keeps track of your mileage may differ, although the most basic way is for you to take a picture of your odometer at the beginning and end of each period. The use of GPS tracking devices to monitor miles has started to become common as well.
So, while this type of insurance may not be beneficial to every driver (such as those who use their Dodge Ram to drive around town all day for work), they can often help average drivers (who just commute to and from work) save a lot of money in the long run.
Another way that Pay-Per-Mile insurance will help you save is by actually reducing the amount of miles you drive. Knowing that the more you drive, the higher your car insurance payments will be is a great incentive to limit your car use. Besides saving you money on lower fuel costs, it can also help reduce the environmental impact that you have. On average, the Brookings Institute estimates that most households would save almost $300 a year with Pay-Per-Mile insurance (http://www.brookings.edu/papers/2008/07_payd_bordoffnoel.aspx)
Unfortunately, due to government regulations, this type of car insurance is still not available in most states throughout the U.S. But if you happen to be lucky enough to live in Texas and donít drive an excessive amount of miles each year, you have a great chance of significantly lowering your car insurance payments with Pay-Per-Mile insurance.