California proposes mileage-based auto insurance
Thread Starter
Registered User
Joined: Dec 2002
Posts: 1,505
From: Charleston, WV
California proposes mileage-based auto insurance
I think this is a great idea...
http://www.leftlanenews.com/californ...insurance.html
http://www.leftlanenews.com/californ...insurance.html
California proposes mileage-based auto insurance
Pay-as-you-go car sharing programs have seen some tremendous success in the United States, which has prompted some California lawmakers to consider applying the same principle to auto insurance. California’s Department of Insurance has introduced legislation that would allow California residents to pay for car insurance based on miles driven.
As with pre-paid cell phone programs, the proposed legislation would make it possible for California drivers to pay as they go. Insurers would offer drivers different packages, eliminating overpayment for miles rarely – if ever – driven.
For drivers willing to opt for a mileage verification program, the savings would be even greater. Instead of purchasing a policy for X number of miles, the verification program would insure customers on a real-time mileage basis – ensure drivers would pay for exactly what they get. Mileage verification would be completed through odometer checks at insurance locations, fix-it shops, emissions check centers and even via GPS devises. Although the GPS devices would be able to keep track of mileage, they won’t be able to relay a vehicles location.
The legislation has yet to be put into California law, but it could go on the books in the coming months. If the program proves to be a success, look for the legislation to spread to other states around the country.
Pay-as-you-go car sharing programs have seen some tremendous success in the United States, which has prompted some California lawmakers to consider applying the same principle to auto insurance. California’s Department of Insurance has introduced legislation that would allow California residents to pay for car insurance based on miles driven.
As with pre-paid cell phone programs, the proposed legislation would make it possible for California drivers to pay as they go. Insurers would offer drivers different packages, eliminating overpayment for miles rarely – if ever – driven.
For drivers willing to opt for a mileage verification program, the savings would be even greater. Instead of purchasing a policy for X number of miles, the verification program would insure customers on a real-time mileage basis – ensure drivers would pay for exactly what they get. Mileage verification would be completed through odometer checks at insurance locations, fix-it shops, emissions check centers and even via GPS devises. Although the GPS devices would be able to keep track of mileage, they won’t be able to relay a vehicles location.
The legislation has yet to be put into California law, but it could go on the books in the coming months. If the program proves to be a success, look for the legislation to spread to other states around the country.
Registered User
Joined: Jun 2000
Posts: 3,463
From: SoCal
Well we have a big problem with uninsured motorists in this state and for that this might be a good idea.
On the other hand I just feel like for a normal driver or a high mileage driver like me it's going to be more costly that what I'm already paying. There is a lot of info that needs to be explained before any of us can really make a fair assessment of the bill.
There is also the idea that since CA and many other states are loosing money from gas taxes in this economy and that if you can charge insurance per mile the next step is tax per mile regardless of fuel economy. That way even electric vehicles that don’t use any fuel can still be taxed.
CA is deep in debt and so they are going to come up with any tax generating idea they can. Legalizing pot could even be passed so they can tax it rather than paying to enforce the laws against it.
On the other hand I just feel like for a normal driver or a high mileage driver like me it's going to be more costly that what I'm already paying. There is a lot of info that needs to be explained before any of us can really make a fair assessment of the bill.
There is also the idea that since CA and many other states are loosing money from gas taxes in this economy and that if you can charge insurance per mile the next step is tax per mile regardless of fuel economy. That way even electric vehicles that don’t use any fuel can still be taxed.
CA is deep in debt and so they are going to come up with any tax generating idea they can. Legalizing pot could even be passed so they can tax it rather than paying to enforce the laws against it.
Registered User
Joined: Feb 2004
Posts: 948
From: Stroudsburg, PA
I always wondered...
in PA if you drive less than 5000 miles a year you dont need to have some things inspected on the car. I cant remember all the details but I got around having no cats, no egr, no air, etc because it was driven under 5k a year.
why couldnt I have my pcm tuned to read exactly 1/2 my actual speed? I could easily figure out how fast I am going by doubling the speed. that 5000 miles/year now becomes 10,000 actual miles/year.
in PA if you drive less than 5000 miles a year you dont need to have some things inspected on the car. I cant remember all the details but I got around having no cats, no egr, no air, etc because it was driven under 5k a year.
why couldnt I have my pcm tuned to read exactly 1/2 my actual speed? I could easily figure out how fast I am going by doubling the speed. that 5000 miles/year now becomes 10,000 actual miles/year.
Registered User
Joined: Jun 2005
Posts: 626
From: MN
That is sad. I remember reading that a majority of car related accidents happen within 7 miles of where the person lives. Which makes perfect since. So a plan like this might be a whole lot lopsided. You could have a person with a perfect driving record who drives 2000 miles a month, paying a whole lot more than a person with stuff on their record who only drives 500 miles. I think the current way is just fine guys. If a person is not going to pay for insurance, they are not going to do it either way. If they want to cut a deal for people who drive less than have an insurance plan specifically for cars who travel less than 5000 miles a year or something.
Super Moderator
Joined: Jul 2005
Posts: 9,507
From: Okemos, MI
Super Moderator
Joined: Jul 2005
Posts: 9,507
From: Okemos, MI
So you'll be removing the odometer?
Registered User
Joined: Feb 2004
Posts: 948
From: Stroudsburg, PA
Registered User
Joined: Jun 2004
Posts: 2,977
From: SeVa
Registered User
Joined: Dec 2000
Posts: 1,214
From: City of Champions, MA, USA