California is considering pay-as-you-drive policies that would allow motorists to buy insurance like they do gasoline — only when the tank runs dry. The California Insurance Commissioner released regulations that permit mileage verification for pay-as-you-drive, but it's not clear how this would be implemented. The goal is to use per-mile pricing to entice Californians not to drive as much so as to reduce air pollution, ease traffic congestion, and lower the number of traffic collisions. Texas recently started a similar system, but it's too earlier to determine its effect. In Texas, you can get a six-month policy with allotments of insured miles ranging from 1,000 to 6,000 miles. When the "tank" runs dry, you buy more miles.
I rather like this system in that I would pay for the miles I drive. Since I don't drive much, I currently still pay for insurance while my car sits in the garage, so knowing I can save money by riding the bus or riding my bike to work would encourage me to leave my car in the garage. I have questions about implementation, but the most sensible system would be check the mileage at inspection, or have the agent check your mileage when you buy more miles. What do you all think?
3 comments:
Never thought of it but it sounds like a good plan. I hope it works for them and they can become a model for the rest of the country.
What a great idea! My initial thoughts are that it is very motivating. How to implement is a good question, as although it is illegal to tamper with the speedomeoter, I am sure that many dishonest people do...especially those that buy and sell cars as a living. I have to wonder how many of them don't tamper a bit with the mileage in order to sell the cars for a higher price. If they could come up with some kind of technology to add to the car that checks mileage and that is non-tamperable...that would be the ideal.
It sounds like it is being seriously investigated as an idea. I like it. This is the first that I have heard of it.
Thanks!
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