»Article posted on: September 18, 2009 by: Amy Danise
Pay-as-you drive car insurance headed to California
Earlier this month, California’s department of insurance announced it has finalized regulations for insurance companies that want to sell pay-as-you drive policies, sometimes known as usage-based car insurance. Insurers will be able to verify mileage through devices in customers’ cars or odometer readings at auto-repair shops, smog-check stations and other places.
Maybe this development will light a fire under car insurance companies. They’ve been pretty slow to roll out programs for usage-based car insurance, which would save certain consumers significant money over traditional car insurance policies. In fact, the only company with a full-fledged pay-as-you-drive program is Progressive, whose MyRate policies are available in numerous states (there’s also MileMeter Insurance, but available only in Texas).
Perhaps the profit in California will now entice more insurers to jump-start their pilot programs for usage-based car insurance. California’s new regulations open a floodgate of potential pay-as-you-drive customers. In addition, California’s long-time focus on lowering auto emissions fits nicely with pay-as-you-drive customer habits.
filed under CAR INSURANCE | tags: Pay as you drive insurance, Progressive, usage-based car insurance
Paranoid said:
Sep 22, 09 at 2:36 pmIt’s an interesting idea and I guess it can save some people money. But I’m too creeped out about someone tracking my driving habits. Before you know it, Big Brother will offer to pay for medical expenses if an expectant mother agrees to microchip her baby - all under the ruse that the microchip will help locate the baby in the event of an abduction. Creepy. Creepy. Creepy. Nope. Not for me. Keep all tracking devices as far away from me as possible. Yikes! I think a co-worker is spying over my shoulder again. Gotta go hide.
Anna Little said:
Sep 21, 09 at 2:22 pmI’m going to tell my retired mother to get a policy like this. She doesn’t drive much and never at night.
JaniceD. said:
Sep 18, 09 at 4:15 pmSince I mostly ride my bike everywhere and only use my car to leave the city on occasion. This type of policy would be perfect for me. Where do I sign up???
StevenLake said:
Sep 18, 09 at 10:15 amI have a long commute to work every day, so pay-as-you-drive wouldn’t make sense for me. But when I retire in 8 years I’m going to get one of these policies!!