By the end of the year California auto insurance may have a new option for their drivers. According to the article “Pay-as-you-drive auto policies could become an option by year’s end” in the LA Times by Marc Lifsher, paying by the mile may be a reality.
Much like cellphone users have started to purchase talk time per minute, drivers could start buying their auto insurance by the mile. Regulations proposed Friday by state Insurance Commissioner Steve Poizner, auto insurance companies would be allowed to offer pay as you drive which would lower insurance bills by keeping drivers from behind the wheel.
There are other possible benefits from such a pay structure. Less cars would be on the road to potentially curb traffic jams and gloabal warming. There would be less greenhouse gasses emitted into the atmosphere over time. No one would be forced to take advantage of the pay as you drive option, so drivers with long commutes to work or drivers who travel a lot may find it cheaper to stick with the conventional auto insurance ploicy.
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