Good drivers not taking pay-as-you-go insurance

Staff Writer
Columbus CEO

Most Americans say they drive better than others, but only about 1 percent of all drivers have signed up for pay-as-you-drive car insurance that rewards careful driving, according to a subsidiary of has found that about two-thirds of drivers who sign up for pay-as-you-drive car insurance are saving money, but 58 percent of Americans don’t even know what pay-as-you-drive car insurance is.

The pay-as-you-go-drive policies that major auto insurers have, including Progressive, Allstate and State Farm, gather information about consumers’ driving habits to help determine how much drivers pay for car insurance. Insurers track, for example, hard braking.

“Most Americans consider themselves better drivers than others, but few are willing to test their abilities with a pay-as-you-drive insurance program,” said Laura Adams, senior insurance analyst for “There seems to be a general lack of awareness and confusion about these programs. That’s too bad, because drivers are missing opportunities to save. Signing up can only help you — it can’t raise your premium.”

Nearly four in 10 drivers surveyed said they would never consider getting pay-as-you-drive insurance. And an additional 35 percent would only sign up for pay-as-you-drive insurance if they were offered a premium discount of 25 percent or greater, according to the website.


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