Monday, 17 January 2011

Snapshot – Drive less and save more in insurance cost every year

Have you ever heard that if you drive less your insurance cost also will be less? You must have heard that there are so many discounts are available for car insurance such as discount for safe drivers, safety measures, non claim discount, discount for college students, women drivers, discount for the second vehicles etc. etc. But here some insurance providers are ready to give a good discount for car insurance if they drive less than 15000 miles a year. Yes the Low-mileage drivers can save big on auto insurance rates.

Somebody drive only a few miles a day. For example Those who are in Metro cities prefer to use public transport to go workplace, A retired employee normally make short trips to any general stores or such urgent places, A housewife normally uses her car to take kids to school and back and to for some shopping purposes and those who work from home does not need to use his car more time.

Insurance providers allow a good percentage of discounts for such short driving vehicles. This pay as you drive program is name Snapshot which allow a discount up to 30% per year of their normal car insurance cost and at present this Snapshot is available in 25 states. Each state has its own insurance rules and the program should be approved on state by state basis.

This discount is allowed on the basis of how many miles the car is driven in the year and the time and method of driving. Because, driving at the midnight (midnight to 4 a. m) attracts more accidents. This Snapshot is allowed only for the cars built in 1996 or afterwards due to monitoring device (snapshot device) can be attached with it to know the time, mileage and driving style etc.

Some insurance providers allow this discount in 35 states and hope to offer the discount in every state at the end of the year 2011.

The less you drive, the higher you save,  ranging from 8% to 54%, For example, someone who drives between 10,000 and 12,000 miles may save 20%, while someone who drives 5000 to 10,000 miles per year may save 26% discount on standard rates. This is a good chance for common man who should not want to drive more in a year. He can save the fuel and insurance cost.

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