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Lower Car Insurance Premiums with this Policy

About two-thirds of drivers who sign up for pay-as-you-drive car insurance are saving money but 58% of Americans don't even know what pay-as-you-drive car insurance is.

"There seems to be a general lack of awareness and confusion about these programs. That's too bad because drivers are missing opportunities to save," Adams said. "Signing up can only help you. It can't raise your premium."

Some auto insurers also consider driving behavior using a telematic device installed in the car to monitor and relay information about when and how a car is being driven.

When it came to factors these programs track, only 35% were aware that drinking and driving are not monitored, 37% knew that hard braking is tracked and a whopping 42% were aware that the time of day driven was tracked.

Privacy is very much of a concern for about one quarter, according to an October 2013 survey of auto insurance shoppers by comScore. "Most Americans consider themselves better drivers than others but few are willing to test their abilities with a pay-as-you-drive insurance program," Adams said.

About 37% say they would never consider getting pay-as-you-drive insurance while 35% would only sign up for it if they were offered a premium discount of 25% or greater. Pay as you drive policies currently on the market include Progressive Insurance' Snapshot, Allstate's Drivewise and State Farm's Drive Safe & Save.

--Written by Juliette Fairley for MainStreet

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