Car Insurance Coverage Details - Carpool Services

Your car insurance coverage cost is based on a number of factors, including how much you drive in a given month. When you submit your application or request for quote, you will typically be asked to input your home address and work address. This gives insurance companies an idea of how far you commute. You are also assessed based on the city you live in and how many people drive there. However, if you car pool, you will drive less, and you will be eligible for lower premiums.

Car Pool Insurance Savings

People who drive less, have less accidents and less wear and tear on their vehicle. This means they are less likely to have large damage claims; they are also less likely to need replacement parts and other services. Car insurance companies like to cover people who do not drive very much. They typically come out on top in the end.

Further, car pool drivers typically exhibit safer driving habits. When you are responsible for people other than yourself, you tend to watch the road more carefully and note safety concerns like seat belts, speed limits and turn signals. If you are in a car pool, let your insurer know. Tell them how many times a week you are in charge of driving or how many miles you end up driving in an average month. This will save you from being charged for miles and miles that you do not actually drive on the road.

Lower Requirements from Lien Holder

The company that holds the title to your car may have requirements on the loan that you maintain a certain level of insurance. This is to keep you from damaging the car below its actual value then defaulting, leaving the company without a proper asset to liquidate to cover losses. If you add or change a lien holder, in fact, you may need to additionally add to or change your insurance. When you drive very little, your car holds its value better over time. You can use this information to opt for lower required limits from your insurer. For example, your brakes, tires and other parts should still be in good shape years down the line. Tell your lien holder if you plan on driving lower than the average amount in your city for a person with your commute.

Pay-as-you-go Options

Not all states offer pay-as-you-go options, but some states and insurance companies do. This allows you to only pay for the amount of miles you actually drove in a given month. Instead of wasting money purchasing a block of 300 miles, for example, and then only using 100, you can pay for this month based on how much you drove last month. If you have a very busy month, such as taking a child to college, you may see a brief spike in your insurance. However, if you are a conscious driver, using carpools and other options when possible, you will typically save money on your yearly premium through this option.

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