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An Overview of Per Mileage Auto Insurance in the County of Los Angeles

Car insurance in Los Angeles is not quite different from getting one from other counties of California. One easy way developed by some insurance company is the per mileage auto insurance. It was first initialized by GMAC insurance company. It does not only initiate the program but also offers different discount packages according to the mileage history of the drivers. In this program, auto insurance rate depends on the number of miles driven and how they are driven. The program is known as “pay-as-you-drive” insurance. The notion has achieved a zealous deal of attention as a way of offering lower rates of auto insurance to drivers.

Concept Base-Line: ‘Pay-as-you-drive’ is a usage based program which takes records of miles driven. It adjusts the rates of auto insurance in LA accordingly. The main attributes of the program is 11% reduction scheme for everyone interested in the program. It also pays up to 54 % in discounts for keeping a low annual mileage. The program is currently available in 34 states including California to within state counties. The tip of this program is that customers who spend less time on driving should contribute less in their insurance costs.

Program Operation: In order to check the mileage of any car, a device about the size of small cell phone is placed in the consumer’s vehicle. This device helps in monitoring the driving habits and transmits the data back to the company. The company keeps track of three main things:

1.            Distance Covered by the Consumer.

2.            Usual Times of Driving.

3.            Aggressiveness in Driving Style.

The information collected through the device is used for determining the discounts of Car insurance in Los Angeles which are applied at the policy renewal time period. For General Motor Vehicles, specific system ‘OnStar’ is installed to automatically track miles. Insurance premium and discounts are afterwards adjusted according to it. The primary benefit of this program is obvious. It facilitates the consumers who drive less and low cost insurance is provided to them.

According to a report by a nonprofit public policy organization, the pay-as-you-drive program can save up to two third of households with an average of $270 of savings per vehicle annually. This can help low income consumers in getting an affordable insurance premium that would not affect their budget and yet insure their vehicle. The success of this program can help other big insurance companies in introducing the policy based on this concept.

Aside from the fact that per mileage insurance is a unique insurance program, its limitation includes the facilitation to less drivers. Mostly, families owning one motor vehicle are not included in the category of driving less. This is why particular premiums and discounts are not meant for them. To get online quotes from different car insurance companies in Los Angeles and to know the possible discounts, enter your ZIP code above the webpage.