The idea behind pay as you drive auto insurance is simple. Basically its this- if you do not drive very much, you will not pay high insurance premiums. Advocates for this type of insurance policy think that there are many merits to this type of program. Less air pollution, lower gas consumption, and lower costs to the consumer among them.

What if you car pool to work, or take public transit? You are not using your car very much so why are you paying high premiums. With a pay as you drive auto insurance premiums you would be able to quite literally pay as you go. Another situation where this plan would be of benefit is that of many retirees who have winter homes in temperate climates, the ‘snowbirds’ living in Florida or Arizona six months of the year and six months in New York or Toronto for example.

Essentially the insurance companies would set an average driving amount for each car type. It could then be broken down into a cents per mile basis. If you wanted to us the pay as you drive auto insurance system you could purchase a set number of miles and you would be covered for insurance during this period.

Pay as you drive auto insurance is an excellent idea for those individuals who do not use their car very much or try to find cost saving methods or environment saving alternatives. Currently this type of program is not yet available, but there are supporters in many states who are hoping to change that soon.

Groups including Environmental Defense, the Conservation Law Foundation and even the U.S. Environmental Protection Agency are working to organize a national cooperative that would work with insurance companies to offer deep discounts for low-mileage drivers; halfway a step toward PAYD (Pay As You Drive) insurance.

General Motors and On-Star Offers PAYD Rates. In mid-2004 General Motors Acceptance Corporation (GMAC) Insurance began offering mileage-based discounts to OnStar subscribers located in some states. The OnStar system reports a vehicle’s odometer readings at the beginning and end of the policy term to verify mileage. Motorist who drive less than specified annual mileage can receive insurance premium discounts of up to 40%.

PAYD programs are also currently available in Israel, South Africa and Holland. PAYD is gaining momentum, and will be coming to your area soon.

D.Demetre is a contributing author at Online-Car Insurance.us where you can find Cheap Auto Insurance

Another main factor you need to consider when purchasing auto insurance is the deductibles amount that are on the insurance policy. This can be very different than the overall insurance rate or premium if you try to apply for the auto insurance and it may be worthwhile to take a few risks even though you may end up pay more if you want to make a claim against your auto insurance policy in the future. But this is one of the best ways to easily lower your monthly cost for your car insurance, if you are a safe driver. However, if you think you will have accidents later, then this is not the best way for you to try to lower your costs.

Apart from that, one of the main factors that can easily affect the cost of your monthly auto insurance premium when you want to buy auto insurance is the way you drive. If you have a lot of auto insurance claim records before, then the costs will be much higher. Therefore, learning to drive more carefully is not only good and safe for you but also has the great potential to easily reduce your auto insurance premium if you can show a good safe driving pattern. Thus, no vehicle accidents and very few if any speeding tickets is a great benefit to you.

At last, the most important thing that can really save you money a lot when purchasing auto insurance is to look around carefully. It is understandable that the process is really a big pain and not a very interesting, but it can really lower your money cost in long term on your automobile insurance premiums. When your insurance needs to be renewed later, you are likely to sign the contract and not look for better deals elsewhere. However, this might cost you alot in the future. With a little bit of attempt, you can then easily achieve your real saving goal on your auto insurance, why not to take this extra step?

Rashme Wong is a successful Internet Marketer and publisher of Top Auto Insurance Providers. A website that specializes in providing auto insurance advice to include easy ways to get a better estimate from an auto insurance online that you can search and learn from the comfort of your home.

How can you do that? By purchasing a safe car. Insurance companies are more likely to offer you cheaper insurance rates if you own a safe vehicle that is not going to be at risk for being easily damaged or having extremely high repair costs.

Safety is sometimes overlooked when it comes to shopping for a vehicle. People tend to look for the cheapest car that will fit their budgets, or they look for something sporty, attention-grabbing, or otherwise physically attractive. What they usually fail to do, however, is check out the safety ratings and components of the vehicle. How do companies that specialize in vehicle safety rate the vehicle? What kind of safety features are highlighted for the vehicle? These are questions you should ask your car dealer.

So, the next time you head out to your local vehicle dealership, look for vehicles that have safety components such as air bags, traction control, head restraints, and impact protection. Don?t be tempted to purchase the vehicle the very same day if the dealer can not offer you information such as crash test ratings on the car ? do some research on the vehicle yourself first.

Making your next vehicle purchase a safe one will not only help you get very cheap car insurance, but it will also help you have peace of mind that you and your passengers will be safe when you head out on the roadways.

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• Try a few different insurance companies. Companies are different. So are their prices. You may find that one company wants to charge you $1000/month for insurance and another will only charge you $400/month. You might be one of the lucky ones who only gets charged $30/month. Regardless of who you are, call multiple carriers even if the first quote you get appears to be low. You may find another company with a lower rate for you.
• Talk to friends and family. Other people are just like you, they want cheap insurance too. Chances are, you know someone who has already called all over the place and can give you some good pointers on which car insurance companies were the cheapest for them. Remember, nobody likes to spend money on auto insurance.
• Use the internet. The internet is a great place to find auto insurance. You can find out information about insurance companies, compare rates, get quotes, and shop around without leaving your house. There are also websites out there like 1carinsurance.org who have organized insurance company data and user data and will tell you which companies people are having success with in finding the best car insurance for them.
• Get auto insurance quotes. Don’t just trust them. Get a quote. They’re free (or, if the quote isn’t free you know you don’t want to use that company). If you can get quotes from 6 or 7 different companies, you then have hard data to compare the companies against each other. You’re also pretty sure you’re going to get the lowest rate.
• Try local companies. Often times people only think about the big auto insurance companies like Geico or Progressive. They don’t even look around their local communities for auto insurance companies that might exist. Often local companies can offer cheaper rates because they don’t have the large buracracy that larger companies have.

Just remember to shop around as you look for cheaper car insurance. The first company isn’t always the best.

John Jonas is an entepreneur and a family man with interests in real estate, marketing, and financial products. You can find out more info at John Jonas Blog.