insurance

Consider pay-as-you-drive coverage

If you’re trying to save money on van insurance, find out if pay-as-you-drive insurance is available in your state. At least one car insurance company in 32 states offers this kind of coverage, and more states are expected to approve it in the future.

However, you’re only eligible for these insurance plans if you drive 15,000 miles or less per year. Insurance companies give the biggest savings to people who drive the least amount of miles.

That means that the people who drive 5,000 miles or less per year will see the biggest drop in their van insurance premiums. If you drive 12,000 miles per year, you'll see a smaller drop in your premiums. In other words, savings could be as big as 50 percent or as little as 10 percent.

Pay-as-you-drive programs require mileage reporting. You usually get a small device that you plug into your car. It’s either connected all the time or just periodically. Some of these devices measure how aggressive of a driver you are. If you drive more aggressively you’ll get a smaller discount on your van insurance premiums and you could be kicked out of the program altogether.

Also, be careful not to drive more miles than planned. That will result in a financial penalty that will essentially negate your savings.

Cut MedPay for more savings?

Another way to save money on van insurance is to cut medical payments coverage. If you've already got health insurance, this coverage is redundant, right?

The short answer is: not exactly. If you get injured in an accident caused by someone else, you may have to wait months for the insurance company to pay your medical bills. Your health insurance may cover you but you may have to pay a high deductible or copay that could put you in dire financial straits.

But MedPay covers your medical bills up to the coverage limit for you, your family and anyone else in the vehicle at the time of the accident. And it doesn't matter who is at fault. Plus, there's no copay or deductible to worry about.

Another advantage to MedPay is that it takes care of other expenses that your health plan may not cover, such as ambulance fees, chiropractic, dental, prosthetics and even funeral expenses.

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