Let’s say you drive your car an average of 300 miles a month. You could pay $30 a month for auto insurance. Drivers with low mileage are paying about $400 a year for a full policy, including comprehensive and collision. This is perfect for people who live close to work, may not even drive their cars every day or have a second car that primarily sits in the garage.
Texas may be the only state currently offering this option. Traditional policies use your driving habits as a factor, but this type of insurance makes a direct link between how much you use your car and how much your policy costs. Some companies require that a GPS device be placed in your car to verify mileage. Some drivers don’t like that because they see it as an invasion of privacy. Others feel it’s worth the savings they see.
This kind of insurance also helps drivers in low-income areas who typically have to pay more to get a policy. With this type of insurance, the part of town you live in is irrelevant when it comes to determining the price of your coverage. Ok so 300 miles a month for 30 dollars a month. Hope you live close to work. That is 13.5 miles a day mon-fri only weekends you would have to improvise. Commuting is what causes congestion which means most people don’t live within 6.75 miles from their job.