California Auto Insurance Quotes Considering Mileage
Residents may be in for a surprise when they obtain their California auto insurance quotes. According to the article “State considers revised mileage-based auto insurance” on Central Valley Business Times’ website there is a new draft of pay as you drive regulations that has recently been released. This revised plan may cause auto insurance quotes in California to consider how much a driver is in the car when determining the cost of a policy. This has been in the works for months, and is backed by Insurance Commissioner, Steve Poizner.
This article states that Poizner believes the pay as you drive concept is a cutting edge program which will create motivation for California drivers to drive less. This will eventually lead to lower auto insurance costs, less pollution in the air, and less dependence on foreign oil.
Some are concerned about the intrusion on privacy that the pay as you drive might create. The Electronic Frontier Foundation says the original regulation would allow auto insurance companies to install electronic devices into their policy holders’ cars to track how much they drive. It will also track a variety of other information such as location and seat belt wearing. The revised plan will prohibit black boxes to track location. Companies will use odometer readings and estimates from the policy holder as well. It’s still to be determined how this new regulation will all pan out in the end.
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