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Insurance Commissioner Steve Poizner of California released regulations permitting and authorizing mileage verification for pay-as-you-drive.
The idea being that Californians won’t drive as much if they pay-per-mile.
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Fact or Fiction?
Spokesmen from a few auto insurance companies, including State Farm and Allstate, have stated that they are considering pay-per-mile auto insurance but haven’t decided whether or not it’ll actually become a reality.
Leisure driving may be reduced, and families will be more responsible about grouping trips together and making unnecessary trips.
Carpooling would also most likely see an increase.
It also might encourage owning multiple vehicles, because families wouldn’t be paying for cars that just sit there.
From a consumer perspective, the change makes a lot of sense.
From the heavy purse of an insurance provider, however, I’m not sure if this is a change they’re hoping for.
Regardless of whether pay-as-you-go is ever available to you or not, checking to make sure you’re getting the best rates you can right now is a great idea.