Pay-Per-Mile Auto Insurance Offers Benefits

Texas offers pay-per-mile auto insurance.When it comes to auto insurance coverage recommendations, not a lot of drivers seem to know about pay-per-mile auto insurance.

That’s because in every state but one – Texas – it’s had difficulty catching on due to regulations, technology, and marketing, according to financial website The majority of auto insurance policies aren’t based on how much a person drives, and pay-per-mile car coverage might make a lot of sense to some consumers.

Drivers won’t only save money on car insurance by using pay-per-mile programs. They can save on gas and vehicle maintenance costs. It’s estimated that close to 75 percent of households would save $270 every year if they used mileage-based auto coverage, according to a Brookings Institute study.

Pay-per-mile auto insurance only is only available in Texas because "most state laws prohibit this type of insurance," said. "Some consumer protection laws require insurance companies to state the premium up front. With pay by the mile, the actual premium can’t be known for any six-month period until the miles driven are known."

There are other ways to save on car insurance. Consumers can seek out discounts for good drivers and credit ratings.ADNFCR-3298-ID-19782494-ADNFCR

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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