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Drive less, pay less with new insurance option in California

By dcuff
Friday, December 3rd, 2010 at 4:21 pm in Uncategorized.

California is clearing the way for pay-as-you-go auto insurance aimed at giving lower rates to drivers who drive fewer miles. The catch: motorists must agree to document their mileage or have a device on board the vehicle do it.

Click here to read a Sacramento Bee story about it.  Motorists would either report their mileage at the start and end of the policy periods, or allow a device on board their vehicle to do the work and transmit the numbers.

Supporters of the pay-as-you-go policies say they have the potential to reduce  pollution and congestion.

State Farm and the Automobile Club of Southern California will be the first to roll out the polices in February. 

Do you think this is a good idea? Would you sign up for a policy like this? Share you ideas below.

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