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 ...
Not to worry. I'll sign you up.
Wouldn't want you to miss any messages from your man! ;-)
Now, now--no need to get hostile...
That is not liability insurance. That would be collision insurance. Liability is for the damage I cause. I cannot cause damage in more than one car at a time.
And don't say it is because I can cause more damage in subsequent accidents, because my liability on one car covers me when I'm in a rental.
Just tryin’ to help! lol.
(p.s. — I wouldn’t do that, so don’t worry).
Oops... good point.
In that case, I have no idea! ;-)
And I would take that to the bank.
There is one thing I never want to see from you and that is payback.
LOL
You say that as if you are proud of it.
***********
I am proud of it. Farmers is a good company. And I am a good agent. I take care of my clients and make sure they get every discount that’s possible and the best coverage to protect their assets.
The plan I like even better would be 'pay as you pump' which would provide a minimum of insurance to all- while hitting lesser drivers the least. Of course, you could always buy more for your Astin Martin. And, if you feel the urge to drive the riding mower to the convenience store, you're covered!
What do you think of what you said when compared to what I said in Replies 54 and 55?
As a rural driver, your fifty miles driven hardly equal the risk taken by someone on I-680 through Concord, for instance. So, miles driven and risk have no correlation as 'area' isn't figuered in.
If insurance is going to be mandatory, the best way to pay for it would be at the pump, and a system could easily determine that you already have insurance when you swipe a card. For those paying cash, the price of a gallon could reflect a fee for insurance (unless they produce an insurance card, etc.)
The system I'd propose would reward rural dwellers as it would discount any fee imposed based upon area accident rate statistics. Large urban areas would by nature have to pay more given their higher rate of accidents.
For people living in the middle of nowhere, four dollar a gallon gas is already a tax. No need for an insurance company to pile on. I'd settle for a minimum fee to cover fender benders so you aren't holding the bag when some loser rearends your car- which is paid for by said 'loser' each time he buys gas. At the same time, insurance cos. should be able to sell additional insurance as may be needed, but those rates should reflect the 'risks' driving represents in certain areas. The same logic could be applied to a gallon of gas: cityboy ain't getting any 'free ride' when he rolls into an East Bay Arco station.
ps. Could you flush your toilets a little more often, Folsom Lake is getting low.
Never going to happen because you're a committed conservative and on my Good Guy list.
Your whole reply was great! You explained your point of view very well and I appreciate it! In fact, I even enjoyed it as you caused me to pause and as a "considerate conservative," you cause me to RE-consider many of your precise points!!!
I'm not sure you've changed my mind yet, but I'm really thinking hard! (and that's hard!!!)
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