Owning a car can be expensive. On top of everything else, you have to pay insurance each month. For this reason, more and more people are looking for affordable car insurance options. One popular option is pay-per-mile insurance. If you would like to know more, keep reading.

What Is Pay-Per-Mile Car Insurance?

In most states, you need car insurance to legally drive on public roads. However, car insurance can be expensive, especially if you don't drive much. Pay-per-mile car insurance gives you an alternative. Just like traditional insurance has a monthly premium, pay-per-mile insurance has a monthly base rate. The base rate is dependent on several factors, such as age, gender, type of car, etc.

The benefit to pay-per-mile car insurance is that the monthly base rate is much lower than most insurance premiums. However, unlike traditional insurance, you also pay for each mile you drive each day.

How Much Can You Save on Pay-Per-Mile Insurance?

Even though you pay per mile, you will still save money by switching to pay-per-mile insurance. One reason is because the base rate is often as low as $20 a month. The per-mile rate is also as low as a few cents.

In addition, most pay-per-mile insurance policies have limits on how many miles you can drive per month, so there is no way you'll accidentally spend a fortune on miles. The insurance carrier themselves will determine how many miles you drive each month with the help of a device they install in your car. This device counts the miles, so there is no need for you to keep tract.

Who Qualifies for Pay-Per-Mile Insurance?

As long as you qualify for traditional auto insurance, you should qualify for pay-per-mile insurance. The only exception is that you must not drive much. As a result, not everyone is a good candidate for pay-per-mile insurance.

For example, if you have to commute to work every day and you can't or don't want to take public transport, you may end up driving too much to qualify for pay-per-mile insurance. Similarly, if you like to go on lots of vacations and road trips, pay-per-mile insurance may not be the right choice. You may benefit from pay-per-mile insurance if you work from home, live in a big city, or take public transportation most of the time.

If you don't drive much, pay-per-mile insurance may be the perfect way to save money each month. As long as you don't drive often, you should be a good candidate for this type of insurance. For more information, contact an insurance carrier like Illinois Insurance Center Inc in your area.