Insurance companies have never had a reputation as the most innovative group when it comes to changing and upgrading their services and the way do business in general, which would help them become more accessible and more appealing to consumers. That is only partly their fault, because insurers have been limited in their ventures to invest in innovations by strict government regulations, and have been forced to work within the tight frame the state has provided for them. That’s why they haven’t been able to offer a lot of new products and services.

Still, there have been attempts by several car insurance companies that have been trying to keep up with the advancement of technology and incorporating new ideas. One such new idea is the pay-as-you-drive insurance. This concept basically allows customers to pay for insurance based on how much distance they have covered with their cars. Besides the miles a driver travels, pay-as-you-drive takes into account how well and where you drive, as well. This means that the less you drive your car, the lower your premium can get. You can also get lower premiums if you drive more often during the day, instead of at night or during rush hour, which is considered to be a more risky time.

This is designed to benefit people that don’t drive too much, and only use their cars out of necessity, for example to go to work or school, and don’t plan on ever going off-road. The mileage covered with your vehicle can be calculated by the insurer using the odometer reading, or with the help of a device that is plugged into your car, which measures the traveled distance, and even the way you break. The pay-as-you-drive concept could bring a lot of benefits not only to car insurance buyers, but it would potentially help reduce pollution, and reduce traffic congestion.

Other innovations that the auto insurance industry is starting to embrace is the usage of mobile apps that allow you to file a claim via your smartphone, as well as apps that serve for paying bills or obtaining insurance quotes. These innovations aim to provide consumers with better and more efficient service and give them the opportunity to report claims 24 hours a day, 7 days a week and get updates on their rates at any time.

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