Pay as You Drive, or PAYD, insurance can be an advantage to certain types of drivers. Other car insurance companies have been known to give discounts to those drivers who do not put a lot of miles on their vehicles. This is because high mileage drivers are considered riskier. They run a higher risk of getting into an accident and costing the company money.
There are thirty four states in the United States alone which have some type of PAYD policy available, although it must be confessed that in other states, these types of policies are actually prohibited. At the same time, however, many of these states are trying to make these policies possible.
This is because of the many advantages associated with them, such as less pollution, less gas use, and the ability to save money.