The insurance industry has innovated different products over the last few years. Most of the innovations target improved value for money for insurance clients. One of these products is pay-by-mile coverage, which is different from motorcycle insurance. Below is an overview of this innovative coverage.
How It Works
With pay-by-mile insurance, the insurance company sets your rates depending on the number of miles you ride. A popular setup requires you to upload a picture of your odometer at the end of every month. The insurance company then calculates your rates using that mileage. The lower your mileage is, the less you will pay for your next coverage.
Difference With Pay-As-You-Drive
Pay-by-mile might sound similar to pay-as-you-drive, but the two are markedly different. Pay-by-mile coverage only considers your riding mileage. Pay-as-you-drive coverage considers your mileage and other riding characteristics, such as braking, acceleration, and speed.
In addition, pay-by-mile coverage does not require you to install a telematics device on your motorcycle. Since the insurance company just wants your mileage, you send them a picture of the same. However, usage-based insurance or pay-as-you-drive insurance requires a telematics device installation to track your riding habits.
Who It Benefits the Most
Every motorcyclist who keeps low mileage per month can benefit from pay-by-mile insurance. For example, you may benefit from the insurance under these circumstances.
Say you are too busy to ride during the weekdays, or you have a weekday job that requires driving. In such a case, you may restrict your motorcycle use to weekends only. Your monthly mileage is likely to be low since there are only a few weekends per month.
Some people only ride occasionally. Maybe you have a family van, a car, and a motorcycle, but you only use the motorcycle for joyrides or recreational rides. In such a case, your monthly mileage may be lower than that of a motorcyclist who uses their bike daily.
You Take Short Rides
Lastly, you may also experience low monthly mileage if you use your bike a lot, but only for short rides. An example is riding your bike to and from a workplace a couple of miles from your residence.
As you can see, personalized insurance is the best form of insurance. Talk to an insurance agent to help you compare the different products on offer. That way, you can choose an affordable policy that suits your circumstances the best.
For more information, contact a company like Quote Buy Ride.