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The Case for Pay-as-You-Drive Car Insurance The Case for Pay-as-You-Drive Car Insurance

The Case for Pay-as-You-Drive Car Insurance

by Andrew Price

July 4, 2010
Most people in America pay a more-or-less flat fee for car insurance that's calculated according to their age, gender, driving record, and some other factors. One thing that often doesn't have much to do with your insurance bill, is how much you actually drive. This predominant system provides a good incentive for not getting into accidents (your insurance will go up if you cause a crash) but it doesn't do a great job of linking the cost of driving to actual driving.

The Wikipedia page has information about where pay-as-you-drive insurance is available around the world (and in the United States). Progressive insurance offers the MyRate program in Alabama, Colorado, Kentucky, Louisiana, Michigan, Minnesota, Maryland, New Jersey, and Oregon. A few other pilot programs have been discontinued due to lack of demand from customers. I can only assume this is because people aren't aware of the option. So I wrote a post about it.

Via Sightline Daily

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The Case for Pay-as-You-Drive Car Insurance