Auto Insurance Discuss

California’s Insurance Commissioner Poizner told the Insurance Journal, “Pay as you drive is an innovative way to create financial incentives for California motorists to drive less, leading to lower-cost auto insurance, less air pollution and a reduced dependence on foreign oil.”
Requirements of the California policies include verification on the following terms:
Language that requires an insurer that offers a pay-as-you-drive plan to specify when filing with the department the exact types of mileage verification the insurer will accept.
The final regulations explicitly require insurers to offer and make available all mileage verification methods equally, to all applicants and insured drivers with a mileage verification policy.
These policies are intriguing on many levels. In large metro areas they may provide society just as many benefits ecologically as they do to individual consumer’s pocketbooks. Having said that however, those densely populated areas tend to have higher auto insurance premiums due to increased chance of auto accidents, vandalism damage to vehicles and a higher incidence of stolen vehicles.
I’m not sure the discounts provided by a “pay-as-you-drive” policy offsets those premium add-ons in metro areas mentioned above, but for some low-mileage drivers it may make enough of a difference to be the deciding factor.