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CA. To Tie Auto Insurance To Miles Driven

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Aug 27, 2008 12:15 pm US/Pacific

CA. To Tie Auto Insurance To Miles Driven

SACRAMENTO (AP) ― The less California motorists drive, the less they'll pay for auto insurance under a proposed regulation.

State Insurance Commissioner Steve Poizner on Wednesday announced a plan that will give drivers the option of paying for their automobile insurance based on the miles they drive.

That would encourage motorists to drive less -- saving fuel and cutting greenhouse gas emissions while lowering insurance premiums.

So-called pay-as-you-drive auto insurance already is an option in 34 states. Poizner wants insurance companies to start offering it in California by fall 2009.

The Brookings Institution estimates that nearly two-thirds of California families would save $276 a year on insurance for each vehicle.

Under the proposed regulations, insurance companies would be able to put devices in vehicles that track miles driven. They would be prohibited from using those devices to track where those vehicles have gone.

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