Car quotes could get cheaper with 'pay as you drive'

Some insurers are eyeing new "pay-as-you-drive" proposals that could benefit the environment, while also helping consumers find lower-priced car quotes.

A recent study by Ceres says that pay-as-you-drive policies could reduce the number of miles driven by as much as 15 percent, while also reducing the number of accidents.

According to Ceres, previous studies have found that two-thirds of households could enjoy reduced premiums under such a system, which could also produce a societal benefit equivalent to $52 billion a year nationwide.

The idea of pay as you drive has actually been around since the 1990s. It would rely on GPS technology that would automatically keep track of mileage. Ceres notes that these programs would benefit insurers as well as motorists, since the companies would be better equipped to fight fraud, theft and other common problems.

Some companies have tested these systems in states like Texas, with participating motorists receiving up to 25 percent off their premiums based on their driving habits. The report also cited a $100 per policy tax credit offered by the state of Oregon for insurers who offer such policies, even though nationally, availability is still said to be "limited."

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