Should You Switch to a Pay-Per-Mile Auto Insurance Plan?

Pay-per-mile plans are gaining attention as Texas drivers look for new ways to save on auto insurance. At Zenitram, we understand that every driver’s needs are unique, and we’re here to help you navigate these emerging options.

What Is Pay-per-mile Coverage?

Pay-per-mile auto insurance uses technology (often telematics devices or smartphone apps) to track your driving habits and mileage. Instead of paying a flat rate, your premium is based on how much and how safely you drive. Pay-per-mile plans, a popular form of UBI, charge a base rate plus a per-mile fee, making them especially appealing for drivers who drive fewer miles.

Benefits of Pay-Per-Mile Plans

If you drive less than the average Texan, you may pay less than with traditional insurance. With a pay-per-mile plan, your premium reflects your driving, not just general statistics.

Potential Drawbacks

While usage-based insurance offers advantages, it’s not ideal for everyone. Telematics devices collect data on your driving behavior and location. If your driving habits change or mileage increases, so could your premium.

Is Pay-Per-Mile Right for You?

Pay-per-mile insurance may be a great fit if you:

• Work from home or have a short commute
• Own a second vehicle that’s rarely used
• Want more control over your insurance costs

However, if you drive longer distances or prefer not to share driving data, a traditional policy may be better suited to your needs.

Our Team Can Help You Decide

Contact us today to discuss your Texas auto insurance needs and see if a pay-per-mile plan suits you.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.