Growing Number of States Eye Pay-As-You-Drive Auto Insurance

As a car insurance companies increasingly offer new discount programs, can help drivers get matched up with the best-priced insurer for them.

Online PR News – 30-December-2010 – – On the heels of the California Department of Insurance’s announcement that residents would soon be able to enroll in the first-ever pay-as-you-drive auto insurance programs in the state, the New York City Department of Transportation and the Secretary of Energy and Environmental Affairs for the state of Massachusetts have announced that they are considering advocating such programs in their states.

Pay-as-you-drive coverage models — also known as PAYD — involve insurers’ monitoring the actual number of miles driven by policyholders and cutting costs for those who put in fewer miles behind the wheel.

According to a report issued by Secretary Ian Bowles, officials in his state are considering a Massachusetts auto insurance PAYD pilot program in which policyholders would pay per mile rather than in one lump, annual sum. Premiums currently do not vary based on the number of miles traveled, according to the report, except for through some available discounts that are distributed for keeping mileage below a certain level.

The report asserts that instituting a PAYD system could have benefits for the environment, with the logic being that policyholders will drive less if they know that it will save them money, and that this will in turn reduce carbon dioxide emissions. It is estimated in the report that a voluntary PAYD program could result in 2-percent decrease in vehicle miles traveled, and up to a 9.5-percent decrease through a strict, statewide pay-per-mile program.


To find out more about Massachusetts car insurance issues, readers can go to where visitors will also be able to quickly evaluate their coverage options by using the free quote-comparison generator.

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