Drivers in California may have a whole new option for obtaining cheap car insurance if a new proposal by the state insurance commissioner is adopted.
Commissioner Steve Poizner recently announced a "pay as you drive" plan that would give state residents the option of signing up for plans that charge them based on their annual vehicle mileage. Supporters of such plans point out that along with potentially saving consumers money, these are also a good way to help the environment in the form of lower exhaust emissions.
"By empowering consumers to take charge of their insurance bill, we may see fewer cars on the road; which means cleaner air, safer streets and lower premiums," said Poizner.
One question surrounding the plan is how a driver's mileage would be verified. One possibility is a GPS-based verification system, which Poizner stressed would not be allowed to actually track a customer's whereabouts. Other options are said to include verification at smog check stations, insurance companies, or mechanics.
The state is expected to decide later this year on whether to move ahead with the plan. If it does, it will present drivers with a whole new option for purchasing cheap car insurance.