Most people are barely scraping by when it comes to being able to afford driving a car. Some have opted for public transportation, even more have joined carpools. Despite the fact that these are big ways to chip away at the price of gas, in no way does it solve the problem as a whole.

While these options might save on fuel consumption, there are still other costs associated with driving and owning a car, such as insurance. Even when using these other means of transportation, the car in the driveway still needs to be insured.

A lot of insurance agencies are considering new insurance plans. There is a new plan that some states are trying, pay per mile auto insurance.

The cost of this insurance is calculated against the number of miles that are driven. Pay per mile auto insurance is intended to life the burden from both car owners and insurance company’s. Rates will be based on how many miles you drive so flat rates will be history.

Pay per mile auto insurance will give drivers more control over their coverage and the price that they pay. Discounting the costs for people who use other forms of transportation is good news to the ears of many. Both insurance companies and customers will see a price cut.

What type of system would be enforced to determine the number of miles that one drives? They have to protect themselves against scammers that will try to manipulate the system.

Although nothing is official, one possibility includes the installation of an odometer that is linked to the insurance company and sending all information about the amount of travel that you do or perhaps even using something like a GPS unit.

The less that a driver uses their vehicle, the lower their premiums or payments will be. 15,000 miles per year and under will be the cut off point for those that want to see the lowest payments.

With many people driving less, this will be a perfect solution for them and a great way to save some money. However, this is currently only available for persons in Arizona, Indiana, Illinois and Pennsylvania.