The Brookings Institution reports studies finding that 2 out of every 3 American households would save money if they switched to Pay As You Drive auto coverage, with an average savings of $270 per year. Pay As You Drive insurance, as its name suggests, is priced on the basis of the number of miles you drive. These plans give you a real reason to drive less and save more.

Who should take a closer look at Pay As You Drive coverage? While anyone can consider these insurance plans, the real winters are low-mileage and low-income drivers. Low-income drivers tend to be low-mileage drivers for the obvious reason that they have to spend less money on driving. Pay As You Drive adds to their savings by reducing insurance costs even while they save on fuel, maintenance, and replacement.

Another benefit of Pay As You Drive is fairness. Under traditional coverage, low-mileage drivers subsidize the high-mileage drivers who pay the same premiums, but, because of how much time they spend on the road, are more likely to be involved in crashes. This inequitable subsidy is removed under Pay As You Drive. Higher-mileage drivers pay higher premiums, and lower-mileage drivers pay less.

Of course, not all low-mileage drivers are low-income drivers. Many people don’t drive just because they care about the environment. The fewer miles people drive, the less automobiles contribute to greenhouse gases, and the less congestion there is on the road. Any driver interested in protecting the ecology should also consider Pay As You Drive.

Drivers interested in saving money in a tight economy would also benefit from Pay As You Drive insurance. Since the insurance premium costs are based on the amount of miles driven, there is an incentive to drive fewer miles because that?s how you save money. Drivers who utilize Pay As You Drive insurance also spend less money on gas and auto maintenance due to their reduced driving. And don?t forget that the less you drive your vehicle, the longer you can keep it after you pay for it. Vehicles tend to last longer if we drive them less.

The overwhelming majority of drivers are better off with a Pay As You Drive policy. If you want to learn how these innovative plans can lower your costs, help save the environment, and help you put off buying a new car, see your insurance agent. Your authorized insurance provider can answer all your questions and create a plan that may save you hundreds of dollars each year.

Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.

A classic car is a worthwhile investment. You need to protect that investment by making sure the car is properly insured. The coverage you need will depend on how you use the car.

There are three types of car insurance. Actual cash value is the most common type of car insurance. It pays out the depreciated book value of the car. Stated value allows the car’s owner to state a value for the vehicle that is greater than the actual cash value. Agree value guarantees the car’s owners will get all of their money back in the event that the car is a total loss.

These types of insurance are offered through a standard insurance provider. The owner of a classic car should also consider a classic car insurance policy. These policies can be cheaper and less restrictive than a standard car insurance policy. Some classic car insurance policies require the driver to be 25 years or older. Some programs even require the driver be at least 30 years old. Classic car insurance programs could also limit the amount of driving you do to 2,500 miles or less a year. Annual odometer readings could also be required. The insurance provider will give you specific information on what requirements need to be met in order to insure your classic car.

No matter whether you opt for a standard policy or classic car coverage, be sure that your policy allows flexible use of your car. You want to be sure that you can use the car for an unexpected trip or exhibition without having to buy a rider or a new policy altogether. If you keep your vehicle in storage part of the year, be sure to tell you agent. Some policies offer lower premiums if you drive the car only certain months of the year.

When the time rolls around to get your vehicle insured, do some comparison shopping. First, be sure your agent has experience with classic cars. You want to get the coverage you need, but you do not want to pay for expensive options that you do not. Make sure you get more than one quote. Compare coverage and premiums and see which company really offers you the very best deal. Just be sure the policy meets your needs, not the needs of some hypothetical classic car fan. It’s never a good plan to go for the cheapest policy only to find out later you weren’t covered.

Regardless of what type of car insurance policy interests you, make sure you work with a qualified insurance provider. They can look at your exact situation and recommend the insurance product that will best suit your specific needs and protect your classic car investment the way it should be protected.

Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.

It’s fun to drive a new car, but buying that new car can be a major pain. Add in the credit crunch due to today’s economic crisis, and you can find buying a new car you like that won’t break your budget really frustrating.

But you can get a car you’ll love for payments you can afford. First of all, be sure you know how much you can afford. This is where you have to start. Take a long, hard look at your budget, making sure you include insurance premiums, taxes, gas maintenance, license, and registration in your calculations. Once you know how much you can pay, the move on to the second step.

Second, think about how you will use your vehicle. Will you be doing a lot of city driving? Highway driving? Do you need room for several passengers or room to haul luggage or equipment? Your budget and needs will determine what kind of car you should shop for.

Next, make a decision about whether you want new or previously owned. At one time people bought new cars because they were, usually, more reliable than news. Now there are many ways you and the dealer can pick out the lemons and choose the cars that are in good condition. You still need, however, to have a certified inspection report and access to the vehicle’s repair and maintenance history. You especially do not want to buy a car that has had?or, worse, needs?major repairs that are not disclosed to you.

Then you decide whether you want to buy or else. Leasing tends to cost less per month and demands a lower down payment. It’s an option worth considering if you trade cars every two or three years. But if you keep your cars until they fall apart, and you can afford a larger down payment, buying is a better option for the long run. If you live in a rural location and commute to the city, or if you use your car in sales, leasing usually is a poor choice, since going over your allotted miles can be extremely expensive when you return the car.

Regardless of whether you buy or lease, be prepared to negotiate. Get bids on cars from several dealers. Shop around for sales and specials, especially if you are buying a car at the end of the year. Dealers often want to get rid of cars at the end of the year in order to make room for new models. The internet makes it easier than ever to negotiate and shop around for good car deals.

Finally, if you plan to finance, have your loan approved even before you go to the dealer. Having that preapproval makes you a much more attractive customer to the dealership, and makes it much more likely they will negotiate with you and give you the best deal.

Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.