When you buy auto insurance, you typically pay a fixed premium by the month or for a certain number of months. Some new auto insurance policies allow you to pay by the number of miles you drive instead. How does it work, and is it something you should consider?
What is Pay-Per-Mile Auto Insurance?
Pay-per-mile auto insurance is exactly what it sounds like. Instead of having a fixed rate, you pay based on how many miles you drive during the billing period, just like how your electric or water bills work.
Car insurance is the contract you sign with the insurance company that protects you from financial loss if an accident or theft occurs. The insurance company will pay for the losses included in your policy in exchange for your paying premium. Most of the policies cover you or another driver using your car at the moment of the accident.
While some auto insurance requirements are mandatory, others are optional, and you can only add them for your benefit.
If you own several commercial trucks, they are naturally exposed to risks that commercial insurance can cover. Getting this type of insurance won't be that complex if you try your best to avoid these mistakes in your search.
Not Getting the Right Amount of Coverage
There are some commercial truck owners that underestimate how much insurance coverage they need. That can make costs soar when these rigs are involved in accidents.