Nowadays, more and more insurance companies are beginning to offer use-based auto insurance. As the name suggests, this is a type of car insurance that calculates your rates based off of the way that you use your vehicle. These are a few signs that this might be the right type of insurance for you:

1. You Don't Drive a Lot

For one thing, you should know that if you choose use-based car insurance, your insurance company will track the number of miles that you drive your car. If you are someone who does not drive much at all, then you might find that you will save a whole lot of money by choosing use-based car insurance. If you have a long commute to work each day or if you otherwise put a lot of miles on your vehicle every month, however, you may find that you will actually pay more for your insurance if you choose this option.

2. You Don't Mind Having Your Driving Habits Monitored

Along with tracking your mileage, your insurance company's device will also track things like your speed when you are driving. If you are a safe driver who practices good driving habits, then this can be a good thing; it's a great way to prove to your insurance company that you are a safe driver and that you deserve the lowest rates. If you don't like the idea of your insurance company tracking your driving habits, however, then use-based car insurance is not going to be your best choice.

3. You're Able to Pay Fluctuating Rates

Because your insurance rates are based off of how much you drive and how you drive, you can expect for your rates to fluctuate from month to month. For some people, this is a good thing, since they'll pay less in the months during which they use their car less or put more of a focus on safe driving. If you are someone who likes to have a strict budget and who always likes to know how much you owe, however, you might not be a fan of these always-changing rates.

Even though it's certainly not for everyone, use-based car insurance is a good choice for many people. If you'd like to find out more about this option and whether or not it might be a good option for you, you may want to consider talking to your car insurance agent. Then, you can determine if it's the right decision for you.