Pay-per-mile coverage is an auto insurance model where the policyholder pays a base rate plus a charge for each mile driven, allowing for more personalized and potentially lower premiums based on actual driving behavior. This type of insurance is especially beneficial for those who drive infrequently or short distances, as it aligns the cost of coverage with the amount of driving done. It can incentivize safe driving habits and reduce overall costs for lower-mileage drivers.
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