(Kiplinger) — If you’re a good driver, you’re probably paying too much for your auto insurance. With the traditional insurance model, your premiums have little to do with how you drive — until an accident or a speeding ticket results in a fat rate increase. Rates are usually based on statistical averages: Your gender, age, marital status, where you live and what you drive determine what you’re charged. If you’ve been accident-free for a long time or don’t drive much, you may get a discount, but personalizing your premiums may save a lot more. A Brookings Institution study suggests that two-thirds of households would pay less with a pay-as-you-drive policy, reducing annual premiums by about 28%.
