Pay-by-the-Mile Auto Insurance Update

The topic of pay-by-the-mile auto insurance in California rolls on with increasing momentum as new updates are revealed to the public. This new form of auto insurance would allow motorists to buy their insurance in a way that is similar to how we commonly purchase fuel; a little at a time when needed. It would allow drivers to obtain policies that more accurately fit their specific needs and requirements, eliminating over-charges while maintaining full coverage. While the plan still needs more thought poured into it, the goals are simple:

Offer drivers per-mile pricing
The hopes that it could lead to residents of CA driving less (to cut costs on individual policies)
Scale down the carbon footprint of auto pollution
Reduce traffic congestion
Reduce the number of auto collisions

The above goals would all be achieved by enticing California State motorists to drive less, based on the per-mile pricing. This concept has been utilized in Texas, called MileMeter, and has been available since last year, offering six-month policies in increments between 1,000 and 6,000 miles. CEO, Chris Gay, fully expects MileMeter to not only be available in California soon, but to become a successful model for others to follow.

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