Using a pay-as-you-drive insurance program could save you money. In some cases, you could save as much as 20 percent. There are several different pay-as-you-drive programs, and the prices and features will vary by company.

Most pay-as-you-drive insurance programs use a telematics gizmo to track your driving habits. This information is then used to calculate your mileage and rates. Many insurers will also send you a monthly bill. There are also a number of companies that offer discounts for bundling your home and auto insurance policies. These are one of the easiest ways to save money on your insurance policy.

The best pay-as-you-drive insurance plans will monitor your driving and calculate a discount for you based on your habits. Typically, these companies will offer a small instant discount for joining the program. The discounts will vary from company to company. Depending on your mileage, you may receive a discount of up to 30 percent. Some companies even offer a bonus of up to 50% for signing up for their mileage based plans.

Pay-as-you-drive programs can save you money, though the exact savings will vary depending on your particular policy and state. For example, Nationwide SmartRide is a usage based insurance program that offers discounts up to 30 percent. It only works in some states, including South Carolina, so it may be a good idea to compare rates from different companies.

Pay-as-you-drive models also offer discounts for cautious drivers. These models often use telematics to determine how long you drive, how fast you drive and how hard you brake. It’s also possible to get a discount for using an automatic clearing house or ACH to pay for your policy.

One company that has a good pay-as-you-drive program is Metromile. The company offers coverage in seven states, including California, Georgia, Texas, Oregon, Arizona, Illinois, and Pennsylvania. The base rate for its pay-as-you-drive policy is $29. The company will send you a monthly bill that will contain the base rate plus a per-mile rate. The company says that its customers save an average of $741 a year.

Another company that has a good pay-as-you-drive plan is Progressive. The company’s Snapshot program is a smart phone app that tracks billions of customer miles. The company’s website says that the program is the “smartest” of its kind. The app also offers a small discount that could save you up to 30 percent of your annual premium.

The biggest reason to use a pay-as-you-drive program may be to save on your premiums. Many insurance companies offer discounts for good drivers, which can amount to up to 30 percent off your annual policy. You may also qualify for an additional discount if you insure two or more vehicles in the same household. If you have a higher deductible on your auto insurance policy, you can also save money on your premiums.

Pay-as-you-drive insurance isn’t for everyone, but it can make sense for drivers who don’t use their vehicles much. It also makes sense for insurers. For example, Progressive has received more than $600 million in savings because of its pay-as-you-drive programs.