[01.09.2008] Insurance Commissioner Steve Poizner wants to make pay-as-you-drive coverage available to California motorists as an insurance option that he says will encourage people to drive less and help reduce greenhouse gases.

Car insurance regulations currently require rates to be based on estimated annual mileage. Poizner has proposed changes in the regulations that would permit insurers to offer pay-as-you-drive coverage as an option. The new regulations would also permit consumers to verify their mileage using odometer readings, car repair records or by using a device, as long as it is not one that allows insurers to track drivers' whereabouts and driving habits.

According to the California Department of Insurance, the Environmental Defense Fund estimates that if 30 percent of the state's drivers opt for the voluntary pay-as-you-drive coverage, the state could avoid 55 million tons of carbon dioxide between 2009 and 2020 -- the equivalent of taking 10 million cars off the road. In addition, an estimated 5.5 billion gallons of gas and $40 billion dollars in car-related expenses would be saved. 

The California Air Resources Board has endorsed the pay-as-you-drive proposal, Poizner's department said. Public comment is being taken on the regulations and after the process is complete, the new rules will take effect — probably no later than fall 2009, the department said.

Source: Greenbiz.com 

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