NEW YORK ( MainStreet) — While four out of five car insurance shoppers say price is the largest determining factor, most consumers are not aware of pay-as-you-drive car insurance, according to an survey.

Pay-as-you-drive car insurance can be a good option for consumers who live in cities or don't drive frequently or far each year. These types of policies, such as "Snapshot" from Progressive, "Drivewise" from Allstate and "Drive Safe & Save" from State Farm, gather information about consumers' driving habits to help determine how much drivers pay for car insurance.

"I think it is a great option for consumers to save money," said senior insurance analyst Laura Adams. "I think more people could be saving money by using these programs."

The survey found that 58% don't even know what pay-as-you-drive car insurance is and that four in ten Americans say they would never sign up for this type of policy. An additional 35% say they would sign up only if they received a discount of 25% or more.

Nearly seven in ten American motorists (69%) say they are better drivers than others, but most aren't benefiting from pay-as-you-drive car insurance.

"Most Americans consider themselves better drivers than others, but few are willing to test their abilities with a pay-as-you-drive insurance program," said Adams. "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. Signing up can only help you – it can't raise your premium."

Consumers are confused about what type of information is being tracked by the insurance companies. The insurers look at each person's driving history by installing a device which records only their mileage, the time of day they are driving, how hard they hit the brakes and their speed, said Adams. The companies do not have GPS installed in their devices and the rates being offered are not based on gender or credit history.

The survey showed that many consumers had misconceptions about how this type of insurance operates – most people were confused about drinking and driving (only 35% know this is not tracked), hard braking (37% know this is tracked) and the time of day you drive (42% know this is tracked).

The survey also disclosed that 38% of male motorists say they are much better drivers than everyone else, versus only 27% of female drivers. Only 1% of drivers say they're below average. The report also revealed that 18-29 year-olds tend to be the most knowledgeable about pay-as-you-drive car insurance, however, 68% answered the drinking and driving question incorrectly. The survey was conducted by Princeton Survey Research Associates International (PSRAI).

Consumers should check with their insurance carriers to determine the availability of a pay-as-you-drive insurance program and how each state regulates the program. California only allows insurance companies to track the amount of the mileage incurred by the consumer, not their speed.