Pay as You Go Auto Insurance?

There are so many things available today that are done as a pay as you go kind of service – cell phones, rental cars, etc. But now the state of California is looking to add this feature to their auto insurance offerings hoping that some people will find it much easier and cheaper than their regular car insurance.
 
Most of the focus as of late has been on the slot machine industry and how it is affecting California residents, but they did not consider the effect that auto insurance is now having on them as well. But there are currently some regulations that have been proposed that would allow for auto insurance companies to offer pay as you go car insurance to their clients.
 
This way you would be able to pay for your car insurance by the mile instead of a blanket plan. You would only pay for the amount of car insurance used, not for miles that you didn’t. Their recent studies into offering this new kind of auto insurance showed that not only do people love the idea of only paying what you use, but that they also found that people were driving less to save themselves money.
 
Not only did it save them money on their car insurance, but it also saved the state on emissions. The plan would have people coming in to show how many miles they had driven, or reporting it themselves. They would then pay a certain amount of money per mile – which they could do ahead of time. Then if they went over the number of miles that they used, they could purchase more as they go. The idea is to reward people for driving less, thus saving the environment and saving money from coming out of their pockets.

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