California’s Proposed Pays as you Go Insurance Policy
California’s Insurance Commissioner Steve Poizner is proposing a usage based auto insurance that could revolutionize the way in which we buy insurance. Though there are seveal challenges in a policy such as this, it allows insurance companies to charge you appropriately for how many miles you are driving. Comments can be made about the proposed policy until July 9th and the new regulations could take effect as early as November.
This type of policy could have numerous benefits beyond just lowering our auto rates. Just imagine the number of people driving less just so that they can save money on their insurance rates. This could dramatically increase the amount of people carpooling to work and keep our roads less congested. It could also help people who have insurance on a vehicle that just sits in their driveways.
Similar policies have been implemented in states and countries have had been able to save drivers money. There are concerns by some that this could be a way for insurers to keep track of where we are at all times. There is also no guarantee that our rates couldn’t actually be higher. At least in California, drivers will be given the option to not have a pay-as-you-go policy. This policy would also not require any insurance company to offer this type of policy, just give them the option.
There are still many kinks in this proposal, but as long as our privacy remains while still reducing our greenhouse gas emissions and saving some money, then I’m all in for it.
Comments
I work in insurance in the uk. A similar product was introduced by aviva but with very limited success. It’s a great idea but I think most people are too worried about the privacy Implementations.
It sure would stop people speeding though!
The best way to do it though is to charge it via a petrol duty
Before the implementation of any regulation, we have to consider many things due to the impact of the regulation when it begins to apply. We should think this also even though the purpose to make our lives better is the main reason to design the regulation.