12700 NE 124th St #9, Kirkland, WA 98034
Pay-Per-Mile insurance is a unique type of car insurance policy that is new to Washington State. This policy determines how much you pay for your insurance premium by the number of miles you drive.
This new type of car insurance policy has become increasingly popular among folks who are:
When you spend less time on the road, you also reduce the chance of getting into car accidents. A Pay-Per-Mile policy allows insurance companies to consider this lower risk in evaluating a driver's premium.
In other words, the less you drive, the lower your premium is under Pay-Per-Mile insurance.
There are two rates that you will see in your insurance quote:
$45 + ($0.06 x 600) = $81
Both the Daily Rate and Per Mile Rate are determined by the same factors as a traditional car insurance premium rate:
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If you are driving an average of 650 miles a month or less than 8,000 miles annually, you are a great candidate for the Pay-Per-Mile policy.
Our recommendation is to ask your insurance agent to provide a comparison breakdown using 3 different mileage scenarios:
This way you can have a better idea of what your Pay-Per-Mile premium might be including fluctuations in miles driven. It is especially useful if your premium is near the breakeven point compared to traditional insurance.
The insurance program we offer has the flexibility of toggling back and forth between traditional insurance and Pay-Per-Mile. So if your driving habits or working situations have changed, you can easily switch back to the traditional policy and vice-versa.
To get started on a Pay-Per-Mile policy, you will need to deposit a small down payment and set up an automatic payment account. The automatic payment account is where your insurance company will deduct your premium, either calculated per day or per month depending on available options.
In order for insurance companies to accurately determine the number of miles driven, you are required to install a secured device into OBD-II (On-Board Diagnostic II) port for each of your cars enrolled in the Pay-Per-Mile policy. All cars built after January 1996 are equipped with an OBD II port.
The OBD II port is usually found under the bottom left area of your dashboard and beneath the steering wheel column. If you have a problem finding the port, give us a call or send us an email, and we will help you locate it.
When plugged in correctly, this secured device allows accurate mileage readings from your car to properly calculate your per-mile premium.
Every insurance company has its own guidelines for policies. We always recommend talking to your insurance agent to discuss your personal policies in detail. Working with an insurance agent is the best way to make sure you are properly covered.