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California insurance commissioner backs pay-as-you-drive policies
Los Angeles Times ^ | August 28, 2008 | Marc Lifsher

Posted on 08/28/2008 1:57:02 PM PDT by calcowgirl

California drivers could be offered a new -- and often cheaper -- kind of car insurance next year under a voluntary pay-as-you-drive plan proposed Wednesday by Insurance Commissioner Steve Poizner.

His plan would base annual rates partly on the exact number of miles driven and would allow people to pay less if they drive less. Poizner issued proposed regulations spelling out the plan, and the state's insurers Wednesday were enthusiastic about the idea but wanted to see more details.

Two out of three households in the state could save an average of $276 per vehicle, and lower-income people, who generally use their cars less than the middle class or the wealthy, might save even more, said a July study by the Brookings Institution in Washington. However, some high-mileage drivers might see their rates increase by opting for pay as you drive, the Brookings report said.

Environmentalists are big supporters of the idea and predict the scheme would cut emissions of greenhouse gases that contribute to global warming.

"I am thrilled to pave the way for California drivers to obtain insurance that is more environmentally friendly and more accurately reflects driving habits," Poizner said. ... "As a strong advocate of healthy market competition and a healthy environment, I am especially pleased to encourage this kind of innovation and additional options for consumers."

Under Poizner's proposal, drivers could report their annual mileage in three ways: They could have their vehicle odometer checked by an insurance company representative; they could submit maintenance records; or they could have an electronic device installed in their cars that would transmit information to insurers.

The electronic monitoring would track only total miles driven and not how or where someone drives as occurs in other states and countries that have pay-as-you-drive insurance, Poizner said.

(Excerpt) Read more at latimes.com ...


TOPICS: Business/Economy; Government; News/Current Events; US: California
KEYWORDS: autoinsurance; insurance; payasyoudrive; poizner; transportation
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1 posted on 08/28/2008 1:57:02 PM PDT by calcowgirl
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To: calcowgirl

“Environmentalists are big supporters of the idea.”

All we need to know.


2 posted on 08/28/2008 2:01:32 PM PDT by Luke21
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To: calcowgirl

Shouldn’t you people be more worried on the looming budget crisis you j*goffs!

Seriously, where is the common sense and leadership!?

UGGGGGH


3 posted on 08/28/2008 2:01:42 PM PDT by cups
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To: calcowgirl

Just like former NY state Attorney General Eliot Spitzer, I do not trust Steve Poisoner, nor this screwball scheme with which he’s angling to run as the next RINO Governor of CA!!!


4 posted on 08/28/2008 2:02:19 PM PDT by SierraWasp (I'm not against the environment, just GovernMental EnvironMentalism!!! (our new state religion))
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To: calcowgirl

Just great. As a CA commuter I log 100 miles a day. Now in addition to getting screwed on gas, my Ins rate goes up. I really need to move to Alaska.


5 posted on 08/28/2008 2:02:37 PM PDT by kgrif_Salinas
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To: Luke21

Well, yes, but this is actually a good idea, especially if you have a car that you don’t drive much and only use for Sunday drives, etc.


6 posted on 08/28/2008 2:03:12 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: calcowgirl

Taxpaying citizens ain’t leaving the state fast enough, eh?


7 posted on 08/28/2008 2:03:36 PM PDT by mewzilla (In politics the middle way is none at all. John Adams)
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To: calcowgirl

As long as it’s voluntary. That’s the key.


8 posted on 08/28/2008 2:03:46 PM PDT by Ron in Acreage (Drill here. Drill now. Drill Paris.)
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To: cups

If they would enforce the law and run the uninsured off the roads it would cut insurance rates a lot more.
It is very simple..insurance cover(non-cancelable) for your plates/sticker. No valid cover no sticker.
It is so simple they won’t do it.


9 posted on 08/28/2008 2:04:07 PM PDT by Oldexpat (Drill Here, Drill There..we must drill everywhere.)
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To: Spktyr

Are they gonna repeal the state and local gas taxes then? Because it seems to me drivers are already paying through the nose.


10 posted on 08/28/2008 2:04:53 PM PDT by mewzilla (In politics the middle way is none at all. John Adams)
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To: calcowgirl

Now, why would insurance companies love this idea? Could it be that they would no longer be tied to state-wide rates?


11 posted on 08/28/2008 2:05:54 PM PDT by DallasDeb ((a.k.a. USAFA2006Mom!))
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To: calcowgirl

I’m a Farmers Insurance Agent for Farmers in California and we already do it this way - less miles, less premium.

Mileage is reported officially twice - when you get your car smogged and when you need two service.

Why is this new?


12 posted on 08/28/2008 2:06:23 PM PDT by bethtopaz (Obama: A rock star with a one tune hit.)
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To: cups

Seriously, where is the common sense and leadership!?
:::::::::
There is none. The moron liberal voters have made sure of that some years ago, when they installed, and continue to keep installed, a liberal RAT state legislature. They have spent us into oblivion, destroyed our demographics with illegals and tax us to pay for them, and now want to tax every business and working citizen out of the state to pay for all of it. They are MORON liberals running Taxifornia.


13 posted on 08/28/2008 2:06:25 PM PDT by EagleUSA
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To: SierraWasp; Czar; Carry_Okie; NormsRevenge; ElkGroveDan; tubebender

I found this article because I’ve started getting spam from a new California political website: http://foxandhoundsdaily.com

Anybody else getting this stuff?

It appears to be part conservative news and part propaganda from Arnie’s old big-spending backers.


14 posted on 08/28/2008 2:06:54 PM PDT by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
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To: calcowgirl

Didn’t they try this in Britain?

No doubt the liberals in Washington state will pursue this like a horny old man after a hot blonde.


15 posted on 08/28/2008 2:07:31 PM PDT by dragonblustar (Once abolish the God, and the government becomes the God - G. K. Chesterton)
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To: Luke21; calcowgirl; ElkGroveDan; NormsRevenge; Grampa Dave; tubebender; hedgetrimmer; forester; ...
“Environmentalists are big supporters of the idea.”

"All we need to know"

You couldn't be more prescient!!!

16 posted on 08/28/2008 2:07:37 PM PDT by SierraWasp (I'm not against the environment, just GovernMental EnvironMentalism!!! (our new state religion))
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To: Spktyr
Well, yes, but this is actually a good idea, especially if you have a car that you don’t drive much and only use for Sunday drives, etc

But that means doing away with "group" rates where rates are normalized because you have high users and low users that balance the costs.

17 posted on 08/28/2008 2:07:38 PM PDT by DallasDeb
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To: kgrif_Salinas

“Just great. As a CA commuter I log 100 miles a day. Now in addition to getting screwed on gas, my Ins rate goes up. I really need to move to Alaska.”

Naw.....look at this as an opportunity. Roll your odometer back and then have the insurance company pay YOU!


18 posted on 08/28/2008 2:10:57 PM PDT by RFEngineer
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To: bethtopaz
I’m a Farmers Insurance Agent for Farmers in California and we already do it this way - less miles, less premium.

Please furnish an example of the difference in premium.

I'm expecting to see a small difference -- maybe 10 or 15%.

I WANT to see a near 50% reduction in premium for driving 50% of the miles -- although there will always be a fixed component to the premium.

19 posted on 08/28/2008 2:12:57 PM PDT by steve86 (Acerbic by nature, not nurtureĀ™)
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To: calcowgirl; Grampa Dave; Carry_Okie; ElkGroveDan
This is almost identical to the Oregone Gax Tax proposal based on miles driven, rather than per gallon that has also been proposed for CA. They will have to track us via GPS, GIS and satellites to make it work especially when we slip out of state on business/vacation trips.

That will eventually be used to limit our constitutional right of moving about freely in these United States of America!!!

Of course EnvironMentalists love this entree to a sinister totalitarian scheme!!!

20 posted on 08/28/2008 2:14:33 PM PDT by SierraWasp (I'm not against the environment, just GovernMental EnvironMentalism!!! (our new state religion))
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