Pay-as-you-drive Auto Insurance: Do You Think This Is A Good Idea?
Jul 15, 2008 by sweetwater | Posted in Insurance & Registration
An federation of insurance companies and environmentalists wants to bring a new kind of mileage-based auto insurance to California and liability motorists only for the number of miles actually driven.
Called pay as you go, the option is available from a few insurers in 34 states ... as well as Canada, Japan and Europe.
One New Zealand, GMAC Insurance Group, says its customers -- whose mileage is tracked by Non-specialized Motors Corp.'s OnStar system -- have reduced the premiums they pay by 13% to 54%....
The system could cut motoring costs, foster the environment and reduce traffic congestion, boosters say. Opponents, foremost privacy advocates, say they fear that insurance companies could begin tracking more than virtuous a driver's mileage. High-mileage drivers could also see higher rates.
I'm sorry but you and the linked Los Angeles Times article have wholly misunderstood the entire matter. It is not "Pay as You Go. All Insurers already consider your annual estimated mileage. Most people consider 13k to 20k or so miles a year as their average. So some of us underestimate and others over estimate on our insurance appplication. An insurer currently scarcely ever ever requires you to verify your annual mileage.
Most people never even update the diligence they signed years ago when they first applied for insurance. In the end it all pretty much washes out in the claims presented to the public limited company,
For those who currently overestimate their annual mileage, Knowing the actual miles driven can staff them save some money.
With the guy featured in the article as an example, He probably at had all three of his vehicles rated for regular use. Since he's only one guy and can't drive all three vehicles simultaneously, he can have one channel which is probably his daily driver rated fro regular use, the other two vehicles can fitting be rated as occassional use and/or recreational use easily resulting in the savings mentioned.
Anyone with multiple vehicles can do the same, By the skin of one's teeth talk to your agent about it.
The drivers at the highest risk for an accident and other claims are under age drivers and drivers who live in concentrated population centers regardless of the miles driven. Not people who tour more miles.
This is not any exciting revolutionary new concept, in fact it's not anything new at all, it's not a new type of coverage or concept of coverage and it's not a pay by the mile system.
It is however, A safe publicity stunt on the part of the named insurer and it's sister company.
I expect this is a fantastic idea.
This will lower rates for those people who only drive a few miles a day to and from line, and for those who have a long commute, they can just stick with traditional insurance.
This would also give people more of a motivation to not aggressiveness their cars as much, which in turn will reduce fuel consumption and possibly degrade gas prices a bit, which will help our economy greatly.
I would buy it!
darkw1ng00 | Jul 15, 2008
this wouldn't be objective to people who have to drive certain amount of miles a day to work and back. Insurance companies will find anything to take your funds.
Tony | Jul 15, 2008
it would perhaps work out good in one way ,for the people who don't drive much they would save a lot of money but it may engender prices for other people who drive a lot,I'm sure the insurance company's would find a way to adjust this to uniform their needs not the actual needs of the customer,right now if that happened they would rough money,and they don't like to loose money,its a good idea though,if it could be impartial to all people i would be in favor of it, good luck.
dodge man | Jul 15, 2008
Normal Insurance Agent
I'm sorry but you and the linked Los Angeles Times article have fully misunderstood the entire matter. It is not "Pay as You Go. All Insurers already consider your annual estimated mileage. Most people approximation 13k to 20k or so miles a year as their average. So some of us underestimate and others over estimate on our insurance appplication. An insurer currently on occasions ever requires you to verify your annual mileage.
Most people never even update the persistence they signed years ago when they first applied for insurance. In the end it all pretty much washes out in the claims presented to the train,
For those who currently overestimate their annual mileage, Knowing the actual miles driven can assist them save some money.
With the guy featured in the article as an example, He probably from the outset had all three of his vehicles rated for regular use. Since he's only one guy and can't drive all three vehicles simultaneously, he can have one means which is probably his daily driver rated fro regular use, the other two vehicles can favourite be rated as occassional use and/or recreational use easily resulting in the savings mentioned.
Anyone with multiple vehicles can do the same, Hardly talk to your agent about it.
The drivers at the highest risk for an accident and other claims are boyish drivers and drivers who live in concentrated population centers regardless of the miles driven. Not people who mean more miles.
This is not any exciting revolutionary new concept, in fact it's not anything new at all, it's not a new type of coverage or concept of coverage and it's not a pay by the mile system.
It is however, A suitable publicity stunt on the part of the named insurer and it's sister company.
Take Distress.
Alan S. | Jul 15, 2008
I mark it is a FANTASTIC idea. It would be much more fair to everyone. You pay for exactly as much as you use. The more you drive, the more likely you are to get in an mishap, so the more you pay.
I think most people would benefit financially from this. Those that drive a LOT would not benefit, so they could prefer the flat rate like the current system.
gomanyes | Jul 15, 2008
Term Life Insurances-Insurance Law?
Jun 23, 2009 by Fox Gibson | Posted in Insurance
Hi I was wondering if you would be masterful to look at a brief summary of my family situation and give me some suggestions.I homelessness to get insurance but can u recomment some changes in what I presently have. I thank you.
I am married and have 3 childern (ages 9, 12, and 16) I just bought a waterfront home ground which is valued at 500,000 with a 300,000 mortgage. My jewrely is about 10,000. We have 3 cars a 2004 BMW, a 2002 Lexus and 1997 Jeep Wrangler. My calm works at a large manufacturing firm and earns about 125 K. I run a day attention center from my home and earn about 45K. I don't have any employees.
My kids all go to private manner - which costs me about 25 a year. We honestly have no savings or investments and almost no discretionary return at the end of the month. ( which is a main reason I am writing this!)
I met with a financial planner and they suggested on purchasing a 50,000 chameleonic life policy for each of us as an investement. I think i am worried about the high vost of these policies
This is what is Non-Standard now covered
property risks
Ho3 with no endorsements or riders, dwelling 300,000, obstacle 100,000, medical payments 2500/person, uninsured/underinsured motorist 100,000,crash and other than collision (100 deductible)
Personal risks:
Life - my husband patron paid group term 50,000, we both have 50,000 universal life method
disability - mr. murphy - employer paid group policy (LTD with a 90 day tarry with benefits to age 65) I have no coverage
Medical: My husband - employer paid Bigger Medical (family plan) myself - i have an individual plan and still pay premiums
I in consequence of you for whatever you can give me!!
Your biggest expos is probably auto insurance. I would suggest increasing your limits, and getting an bumbershoot policy. Also, increase your physical damage deductibles for damage to your vehicles. With regard to the life insurance, there are many ways to deal with that. I would increase his term life insurance.
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Faith that helps, post back if need be- regards- Richard Man U
Your biggest revealing is probably auto insurance. I would suggest increasing your limits, and getting an agency policy. Also, increase your physical damage deductibles for damage to your vehicles. With regard to the life insurance, there are many ways to deal with that. I would increase his term life insurance.
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Hope that helps, affix back if need be- regards- Richard Man U
Frank Thosmas | Jun 23, 2009
You essential a local agent, to sit down wiht you about this.
My personal opinion - you are absolutely nuts to buy sustenance insurance, when you have absolutely no savings, investing, or discretionary money left at the end of the month.
Your edifice is wildly underinsured, your liability is wildly uninsured, your auto is wildly uninsured. Doubtlessly, you and your husband's lives are wildly underinsured, but when you're one paycheck away from getting your lights keep out off, AND you're making $170,000 a year in income, youve got some major, significant, MAJOR spending problems.
Life insurance is the LAST thing you need to apprehension about.
Sell a car. Sell your jewelry. Sell a bunch of other stuff. End eating out. IF you're legit.
But I strongly suspect this isn't a legit question - one moll daycares don't make $45,000 a year. And without reading any other questions, I noticed you posted, what, about 15 of them, all joint to life insurance.
mbrcatz | Jun 23, 2009
I'm not present to go into to much detail here because of what has already been said. I just want to say that I do think you need life insurance. However, I would not promote a variable policy. A variable policy relies on stock exchange performance and puts a lot of risk on the policy holder. It sounds like in money is an issue so you should look at a blend of term and permanent insurance.
As for the rest of your ball game I think you need to find yourself a really good financial coach that can steal. You really need to sit down with someone who can look at your whole financial situation. It is the interaction of all the spending you've mentioned that needs to be infatuated into account before any decisions are made.
CJBowker | Jun 23, 2009
I always counsel purchasing a permanent policy which you already have with the $50,000 Universal Life on each of you. However, because you are so strapped financially, this is what I would endorse. First of all, you have to protect the main money-maker, which is your husband. If his $125K return is gone, your family is in trouble. The way I work with my clients is calculate how much liability they have. You did not mention whether or not you owe on your cars, but if you do, then calculate them with the balance of your $300,000 mortgage. Gross the full amount of your debt and expenses annually. Multiply your husband's salary 3 or 5 times. I vouch for 5 times because that's the amount of time it usually takes for a spouse to recuperate from a bereavement. Add that figure including your debt and that's the amount of insurance you need to purchase to protect you and your blood. Keep your current Universal Life policies and get a term policy on your peace for 30 years for the amount of your calculated debt.
As far as your deductibles on your automobiles, I would get the highest deductible and use the notably money you've been paying the insurance company and have it automatically deposited into an emergency green savings account. Why pay the insurance company when you can pay yourself? Unless you have a terrible dirving retelling, don't waste your money paying for a low deductible.
I would also recommend talking to your tax preparer and find out how many deductions you are allowed to take without having to pay taxes at the end of the year. Take that extraordinarily money and invest it. When you allow too much of your money to be deducted from your paycheck, feeling whose using YOUR money, and then giving you your own money back after you file your taxes? Pay yourself, not Uncle Sam. But you yes MUST have a system in place to have this money automatically invested or you will spend it.
If your husband has a kinsmen plan for health insurance, why are you paying extra money for an individual project? Take that extra money and put it into an investment vehicle (NOT VARIABLE UNIVERSAL Existence). Too risky! I would recommend putting that money into a Roth IRA.
By the way, that insurance substitute trying to sell a $50,000 Variable Life policy to you is not working in your finery interest. He obviously has not done a financial needs analysis on your family finances.
CA licensed - 10 years
mob442ins@yahoo.com
mob442 | Jun 23, 2009
Does The Pro-amnesty Crowd Fail To Realize How.........?
Sep 25, 2006 by M. S. | Posted in Immigration
illicit immigration negatively affects us legal residents by bringing down our instruction system, healthcare system, economy, crime rate, and hence overall quality of existence?
Do they realize it, but purposely ignore it because they are illegal, their relatives and/or friends are, or are they solely uninformed?
Why do some believe it is a victimless crime?
For example, my friend got into a car mischance with a group of them (DUI) and now her baby has permanent brain/spinal cord damage.
She may give entr money from uninsured motorist insurance... but sometimes money isn't enough. Her child will have critical lifelong salubriousness problems because of our failure to seal our borders.
The ones I deal with in my neighborhood do not stand in want to assimilate. They hang Mexico flags from their roof and turn the streets into Nogales.
And they're uncorrupted and looking for better lives?
~ Maricela
,Explicate what you mean by "bringing down our education system" if you look back on the description of the American Education System it's been a mess for over forty years. With the onslaught of "No Stripling Left Behind" we've successfully proved only states like Texas who fleece their way through, can pass yearly mandated examinations. I believe TX has a large nomad/immigrant population...so I don't see how that statement is true. Please elaborate.
yes, they do not understand the negative impact that the illegal immigrants have on many aspects of our lives.
sway_ii | Sep 25, 2006
Politicans who supporter amnesty only are looking to buy votes. Simple, that is it. There are many illegals who are gang members and criminals. There must be a judiciary immigration system to have order. We simply cannot have millions coming here, refusing to learn english, refusing to pay taxes like admissible citizens, getting public services for free. There is economics implicated.
Chainsaw | Sep 25, 2006
I on for your friend's baby. An illegal hit my car, had no insurance, and the legal American had to pay for it. Yes we need to sturdy our borders because we can not support every tom, dick and harry that wants to make a immovably american buck to send back home to mama. The money they sort doesn't even stay in the country, and it's hurting our money supply.
MarshaMarsha | Sep 25, 2006
,Explicate what you mean by "bringing down our education system" if you look back on the news of the American Education System it's been a mess for over forty years. With the onslaught of "No Girl Left Behind" we've successfully proved only states like Texas who shark their way through, can pass yearly mandated examinations. I believe TX has a large migrator/immigrant population...so I don't see how that statement is true. Please elaborate.
Carol R | Sep 25, 2006
Yes, I call to mind a consider this is getting very ridiculous. Pro-illegals just don't want to get it.
Mona | Sep 25, 2006
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