Pay-as-you-go insurance?
Have any of you heard about the new idea of pay-as-you-go car insurance that is being thrown around in California? Well, it’s true. I found an article on autoweek.com that says that California is seriously considering doing this and as early as November. What would happen would be that you could buy insurance coverage by the mile. This way the consumer could just pay for the insurance that they use and save money. Another thought of lawmakers is that people would drive less, therefore there would be less emissions, which equals healthier air, etc.
So, how it works is that you can prepay for a specific number of miles. You could buy a blocks of miles for a certain amount of time, if you need more you can buy them. There will be discounts available to you if you use this new insurance option. Part of the plan can be that you report your miles to the insurance company and their insurance agent or repair shop will check your odometer.
This pay-as-you-go insurance option is definitely not worthwhile for the commuter with a lengthy commute or people that drive a great deal one week and then not so much the next. It would be too hard for these consumers and probably cost them a lot more. I guess it’s a good idea if it truly works out like California is hoping that it does. I don’t know if people will truly drive less to save some money. I’m sure there are some people that will do that, but a great number of them? I don’t know. I know I probably wouldn’t. I don’t love to drive now, I do it when I have to, therefore nothing would change for me with this new pay-as-you-go insurance. But that’s just me, I’ll be interested to see if it does begin in November, and how many people choose to go this route.