Chicago Personal Injury Lawyer Blog
Some newer insurance policies are now rewarding drivers for driving fewer miles in their vehicles. New pay-as-you-drive policies, such as the one offered by State Farm, are now offering coverage based on the number of actual miles traveled instead of the amount of coverage you select, according to The Bellingham Herald.
While our Chicago car accident attorneys understand that everyone is dealing with the rough economy, we don’t recommend that your car insurance be an area you target for savings. As a general rule, motorists purchase as much coverage as they can reasonably afford.Some important considerations when purchasing insurance coverage are your coverage limits and whether or not you have uninsured/underinsured motorist coverage. These by-the-mile policies may claim to save you money up front, but they could end up costing as you put on miles. With the new program, drivers are required to report the miles traveled to the agent in order to determine the amount owed for that insurance period.
The pay-as-you-drive policies are currently available in 32 states, including Illinois, according to the Environmental Defense Fund. The policy, offered by State Farm, is referred to as the Drive Safe & Save program, but it advocates less driving over actual safe driving.
“Now you’ve got 39 different mileage segments where you can fall under and potentially have savings in each of those segments if you are moving down in mileage,” State Farm spokesman Bob Devereux said.
Before the new insurance program was launched, the car insurance giant only offered two different types of coverage: those premiums ties to less than 7,500 annual miles traveled and those tied to more than 7,500 miles.
Regardless of coverage, it is important to speak with an attorney immediately after being involved in a motor vehicle accident. How you deal with insurance companies — including your own — could impact your ability to collect damages.
If you or a loved one has been injured in an accident, the personal injury attorneys and wrongful death lawyers at Abels & Annes offer free and confidential appointments to discuss your rights. Call (866) 99-ABELS. There is no fee unless you win.