Insurer Offers Pay-As-You-Go Insurance Discount to Drivers Cutting Back

As people drive less, GMAC Insurance embraces mileage-discount auto insurance

As people look for ways to cut back during the recession, many are cutting back drastically on the number of miles they drive. According to the Federal Highway Administration, within the past 13 months, Americans have traveled upwards of 112 billion fewer miles.

As a result, GMAC Insurance is sitting up and taking notice of the distinct shift in consumer mindset. The insurer is offering those who drive less a way to save even more on their transportation costs with a Pay-As-You-Go Insurance program, where those who drive less, pay less on their auto insurance.

Wade Bontrager, senior vice president, Affinity Division, GMAC Insurance, says he's seen a significant number of people looking to reduce their auto insurance coverage to save money, but that isn't always the safest option. Instead, he proposes that people consider mileage-discount insurance offerings.

"We understand the stress that excessive driving can have on your wallet, which is exactly why we created the GMAC Insurance Low-Mileage Discount," he said. "We want to help our customers save money on their transportation costs in a safe way, without compromising their auto insurance protection."

The GMAC Insurance Low-Mileage Discount is currently offered to OnStar subscribers in 35 states.

This opt-in program is the first of its kind leveraging state-of-the-art technology using OnStar to allow customers who drive fewer miles to benefit from substantial savings. Eligible, active OnStar subscribers simply sign up to save on their premiums if they drive less than 15,000 miles annually. Subscribers who drive less than that can save even more (up to 54%) * based on the number of miles driven. Simply put: the less you drive, the higher the insurance discount.

Customers who drive more than 15,000 miles per year are not penalized by GMAC Insurance's Pay-As-You-Go Insurance - all OnStar customers still receive an insurance discount^* simply for having an active OnStar subscription, even if they are not eligible for the Low-Mileage Discount.