Those of you who don’t drive as often as most of us can be rewarded for your lower mileage. If you’re the type of driver who only drives a few times a week, you could qualify for cheaper car insurance. For example, if you’re a stay-at-home parent who only drives the kids to their activities and a bit on the weekends, you may be paying more than you need to. Similarly, if you’re an older person who drives rarely, you could be saving yourself some extra dough.

You may qualify for Pay-per-mile insurance or pay-as-you-drive insurance (PAYD) is based on usage and takes into account the miles you drive. It’s good for your wallet and surprisingly a win-win for the insurance company, too. The pay-per-mile option helps to get rid of a major challenge for police officers when they pull drivers over.

Since insurance cards show the policy term dates but not whether insurance has lapsed, it’s not always clear whether the driver’s insurance is actually in effect. Under the pay-per-mile arrangement, the officer can simply check your odometer reading against the odometer limit on the insurance card to know whether your insurance is up to date.

Since risk occurs on a mile-by-mile basis, the pay-per-mile insurance is the best way to pay for it. As far as your insurance company goes, your mileage will likely be tracked by GPS or regular odometer readings to determine whether you’re going over your allotment. The insurance company may also use other devises to track your mileage, speed, distance, and braking habits.

Pay-per-mile insurance can be a good investment for people who don't drive very often. But you should keep in mind that if you choose this type of insurance, your rates could increase depending on how you drive and where you live. You might also have to pay for a monitoring device that you insurance company uses to check out your driving habits.

You may save money by driving less since you’re more aware of your driving habits. This can ultimately save you more on gas, wear and tear to your vehicle, as well as lessen your impact on the environment. Altogether, pay-per-mile insurance may be a good solution for you and ultimately help you and your family monitor the amount of miles you drive. If you’re seeking cheap car insurance and don’t spend hours a day commuting, this might be a wise alternative for you.