The Brookings Institute 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 winners 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.

It’s true, of course, that not all low-mileage drivers and low-income drivers. People who live in very large cities often don’t drive cars, and many keep their cars in the garage for the simple reason that they care about the earth. Either way, the fewer miles people drive, the less they contribute to pollution and greenhouse gases. Any driver who feels he or she deserves some monetary recognition for being a friend of the earth should look into 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.

Almost any driver can benefit from Pay As You Drive. If you are interested in learning more about how these plans can save you money, help save the environment, and save your having to buy a new car, see a qualified insurance broker. Your insurance agent can answer your questions and create just the right plan to help you maintain the coverage you need and save hundreds of dollars each year.

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