Pay-as-you-go programs have been increasing in popularity in a variety of industries – from cell phones to data plans and software – and car insurance is just the latest industry to jump on board. Pay-as-you-go auto insurance basically charges drivers a rate based on the number of miles that they drive in a given period. Progressive Insurance began offering a Snap Shot Discount pay-as-you-go auto policy in 2011, and State Farm and Allstate quickly followed suit. The policies may not be available in all states to date, but they are available in most states.
As with any insurance policy, there are pros and cons to the pay-as-you-go auto insurance programs.
Pros of Pay-As-You-Go Auto Insurance Programs
Depending on your driving habits, a pay-as-you-go auto insurance policy may save you a considerable amount of money over a traditional insurance policy. Additionally, pay-as-you-go auto policies may also help the environment by discouraging excessive driving.
Cons of Pay-As-You-Go Auto Insurance Programs
Some of the negatives associated with the pay-as-you-go auto policies include a loss of privacy and the imposition of driving restrictions. In order to determine whether a driver is eligible for the pay-as-you-go auto policy, the insurance company typically installs a device that tracks the policyholder’s driving habits for a period of time, which some drivers feel is an invasion of privacy.
Some pay-as-you-go auto insurance programs also place limitations on when a customer can drive, such as limited at night driving.
Dealing with Insurance Companies after an Auto Accident
Auto insurance policies – whether a pay-as-you-go policy or a traditional policy – are complex legal documents, and the claims process can be time-consuming and frustrating, you may wish to contact the skilled Chicago personal injury law firm of Ankin Law Offices for help with your auto accident insurance claim.
Insurance companies want to settle claims quickly and for as little money as possible so it is not uncommon to disagree with the claim settlement offer of the insurance company. If you disagree with the determination of the insurance claims adjuster, you do have options. It can be helpful to contact an experienced Illinois auto accident attorney. The knowledgeable Chicago auto accident attorneys at Ankin Law Offices, LLC have significant experience representing the victims of motor vehicle accidents and we are skilled at handling the insurance claim process following an auto accident, whether you have a pay-as-you-go auto policy or a traditional auto insurance policy.