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This will be an interesting experiment. Currently you buy car insurance based on the value of your car and how many miles you drive each year.
"But, new regulations just finalized allow insurance companies more emphasis on how much a person drives with "pay-as-you-drive" policies, which will be cheaper for people who do not drive as much.
The Verified Miles Plan means a driver's insurance agent, an auto shop or a GPS-like device will read their odometer.
The pre-paid plan allows drivers to buy miles in bulk, such as coverage for 25,000 miles, instead of for a period of time.
"If we can put financial incentives in place to encourage drivers in California to drive less, then we can reduce the number of miles driven in California. That will reduce accident rates; it'll reduce insurance rates and it'll help clean up the environment," California Insurance Commissioner Steve Poizner said."
This is a voluntary plan, giving drivers choice in insurance. Now that is a good idea. Thanks to Insurance Commissioner Steve Poizner, Californians will be allowed to determine the cheapest way to get the best car insurance. In others words, he trusts people to make decisions. That is refreshing.
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"But, new regulations just finalized allow insurance companies more emphasis on how much a person drives with "pay-as-you-drive" policies, which will be cheaper for people who do not drive as much.
The Verified Miles Plan means a driver's insurance agent, an auto shop or a GPS-like device will read their odometer.
The pre-paid plan allows drivers to buy miles in bulk, such as coverage for 25,000 miles, instead of for a period of time.
"If we can put financial incentives in place to encourage drivers in California to drive less, then we can reduce the number of miles driven in California. That will reduce accident rates; it'll reduce insurance rates and it'll help clean up the environment," California Insurance Commissioner Steve Poizner said."
This is a voluntary plan, giving drivers choice in insurance. Now that is a good idea. Thanks to Insurance Commissioner Steve Poizner, Californians will be allowed to determine the cheapest way to get the best car insurance. In others words, he trusts people to make decisions. That is refreshing.
More...