Can I Buy Special Auto Insurance if I Only Drive a Couple Thousand Miles per Year?
Answer:
Pay as you go insurance is not currently widespread
in the United States though low mileage insurance pilot programs are in place in a couple of different states. These pay as you go plans would benefit low mileage drivers because they would only need to purchase auto insurance based on miles driven each year. Since they are rarely on the road, the theory is why should they pay as much as drivers who are always driving.

Pilot programs are in place in Oregon, Washington, Texas, Massachusetts, and Georgia. For example, in Texas, Progressive Insurance used Global Positioning Satellite technology in their pilot program.

The National Insurance Association is working with groups such as the EPA, the Conservative Law Foundation, and Environmental Defense to come up with a national plan that would work with insurance companies to offer low-mileage discounts. The benefits of pay as you go plans include affordable rates for low-mileage drivers and a decrease in total miles driven as consumers adopt a pay as you go plan and adjust their driving habits to control costs.
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