Mileage Based Auto Insurance Revised By State

State Department of Insurance has released a revised plan which could lead to basing of auto insurance on number of miles they drove.

This is a program called as “Pay as You Drive” which is cutting edge technology program which will create financial incentives for California State Drivers, leading to lower cost auto insurance, less air pollution and reduced dependence on oils.

The Frontier Education Foundation states that the regulations let the insurers to require customers cars which needs to be fitted with electronic devices which could transmit back to insurance companies all data about car motion as well as driver behavior.

The revised regulation would help to track where the vehicle would have been driven but it does not take into consideration other points raised by Regulations. But there are various cases where company could continue to offer traditional insurance on estimated mileage basis. The pay-as-you-drive insurance is a type of insurance which is a way for motorist to pay up more accurately then for the coverage which may be needed by linking their premium closely than they actually drive up the miles.

If driver elects to purchase a pay-as-you-drive policy, then the insurer would verify the drivers miles through variety of methods which includes odometer reading insured by insurers, auto repair dealers, self reporting to policyholders all of which are placed into consumer’s vehicle.