Posted on 08/28/2008 1:57:02 PM PDT by calcowgirl
California drivers could be offered a new -- and often cheaper -- kind of car insurance next year under a voluntary pay-as-you-drive plan proposed Wednesday by Insurance Commissioner Steve Poizner.
His plan would base annual rates partly on the exact number of miles driven and would allow people to pay less if they drive less. Poizner issued proposed regulations spelling out the plan, and the state's insurers Wednesday were enthusiastic about the idea but wanted to see more details.
Two out of three households in the state could save an average of $276 per vehicle, and lower-income people, who generally use their cars less than the middle class or the wealthy, might save even more, said a July study by the Brookings Institution in Washington. However, some high-mileage drivers might see their rates increase by opting for pay as you drive, the Brookings report said.
Environmentalists are big supporters of the idea and predict the scheme would cut emissions of greenhouse gases that contribute to global warming.
"I am thrilled to pave the way for California drivers to obtain insurance that is more environmentally friendly and more accurately reflects driving habits," Poizner said. ... "As a strong advocate of healthy market competition and a healthy environment, I am especially pleased to encourage this kind of innovation and additional options for consumers."
Under Poizner's proposal, drivers could report their annual mileage in three ways: They could have their vehicle odometer checked by an insurance company representative; they could submit maintenance records; or they could have an electronic device installed in their cars that would transmit information to insurers.
The electronic monitoring would track only total miles driven and not how or where someone drives as occurs in other states and countries that have pay-as-you-drive insurance, Poizner said.
(Excerpt) Read more at latimes.com ...
“Mileage is reported officially twice - when you get your car smogged and when you need two service.”
Won’t trap me!
My PU is smog exempt and I do my own service.
I don’t drive or own a car, do I get a rebate?
Where accidents happen
Miles from home/Percentage of accidents
1 mile or less - 23 percent
2 to 5 miles - 29 percent
6 to 10 miles - 17 percent
11 to 15 miles - 8 percent
16 to 20 miles - 6 percent
More than 20 miles - 17 percent
if you use your cell phone more than I do, do you not get charged more?
If you buy more groceries than I do, is your food bill not larger than mine?
So, if I only drive 50-100 miles a week, why should I be charged the same as a person driving 1000 miles a week with the same driving record?
I love the concept. As long as it is a flat examination of miles driven I have no problem with the execution. You only pay when you drive. What a concept.
I recently went on vacationa and for 12 days. I did not turn on the news, log onto news websites. I purposely covered my eyes and ears to politics. It was so nice I didn’t have to be around this cr*p. But now I’m back and are falling back into my routine of paying attention to this.
UUUGGGHHH
GPS ?
Personally I've never liked the fact...that if I own 5 cars..and I'm the only driver...I have to have full insurance on every car.
I can only drive one at a time.
Yes, but when you have a car that does, at MOST, 250 miles a year, it’s rather silly to force you to pay for coverage time you don’t use.
Also, many states, including CA, require you to have any automobile you possess registered and insured - even if it is in boxes and crates and not operable. Staying legal in that environment is usually a huge expense.
“His plan would base annual rates partly on the exact number of miles driven and would allow people to pay less if they drive less”
Here’s the thing. If I were a socialist leaning type, I’d love this. I don’t drive anywhere I absolutely don’t have to. I work at home, and live in a paradise, have seen more of the world than I ever wanted to, so why would I want to go anywhere?
Anytime some bureaucrat gets to throw us at his scales and determine his choice of which of us gets the goodies I get nervous. Even when it would be to my benefit.
In other words, NO!
That’s in the article. You can have the odometer reading pulled by an insurance company rep on a regular basis, show them your oil change receipts, or get a tracking device installed in your car.
Yeah just like seatbelt laws were “voluntary” and magically overnight they became required.
“The electronic monitoring would track only total miles driven and not how or where someone drives as occurs in other states and countries that have pay-as-you-drive insurance, Poizner said.”
Yeah, like I believe that one.. lol no thanks.
I agree. I hate paying full rate on a back-up vehicle.
One mile over the speed limit, you are ticketed...and your insurance goes up.
The possibilities are endless.........
Amen, sister..!!
Are you certain of that? Mine was too, for one year since it was 25+ years old, but they repealed that exception for vintage vehicles a couple of years ago... I've had to smog my 1976 Gimmy ever since and it really irritates me as I only drive it to the danged dump about once per quarter!!!
Very well said, AuntB!!!
My 65 is still exempt, I just renewed the tags this month.
One of Arnie's socialist appointees, Joan Borucki, was cheerleading for this in California a couple years ago. Aha... you even posted a thread!
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