Pay As You Go Car Insurance
Written by Andrew Torchon
Recent rises in cost for car insurance has prompted State officials to consider a plan to have automobile owners be allowed an new kind of policy - Pay as you go.
Insurance companies have alligned with strange bedfellows environmentalist to propose a mileage - based insurance plan that would charge Californian motorists purely calculated on the actual distance they drive. The “pay as you drive” policy has already been in effect in 34 other states as well as the countries of
Citing the optional plans ability to reduce private transportation costs, protect the environment and reduce traffic jams, the initiative is not without it’s opponets.
Despite large insurance companies like GMAC Insurance Group pointing to the policy as a reason to having lowered it’s premiums by 13% and as much as 54%, many advocates for privacy contend the Big Brother like tracking requirements could give way for the insurance companies to start eyeing more than just your mileage. There is also fear that higher mileage drives would suffer increased rates regardless of their safety record.
It is a chilling to think an insurance company could require your car of have a GPS device that keeps an accounting of all your miles but could also spy on your other driving habits such as excessive speed, eratic driving and who knows, maybe even forcing you to take a breathalizer test before getting behind the wheel. Not neccissarily a bad idea when you think about it as a preventative safety technique but definately forboding for those dreading the encrouchment of our government’s ever increasing attempts to invade our privacy.
Proponets for the plan point out further justifications such as a motorists who’s policy is based upon the distance they drive would make the effort to drive less. This in turn would equate to less vehicles on the road, (decreasing congestion and accidents), less fuel consumption thereby reducing exhaust fumes and lowering pollution, making Green Peace smile.
Combine this with the current rising costs of gasoline prices, the habits of American drivers could change the way we travel the highways.
Happy motoring.