What is Pay as you drive insurance?

Also known as usage based insurance, pay as you go insurance is a type of auto insurance that is based on your personal usage. Insurance rates adjust based on the number of miles you drive. Your monthly premium consists of a base payment and then you are charged per mile you drive. Depending on the coverage you have, rates can differ based on the times you drive, the way you drive. Similar to conventional insurance, factors such as vehicle type, age and driving history can influence your rate. Pay as you drive insurance saves most drivers money when compared to their conventional coverage.
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