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Posted: Tuesday, 15 July 2008 4:02PM

Pay-As-You-Drive Auto Insurance Legislation

SACRAMENTO, Calif. (KCBS)  -- Californians may soon be able to choose a "pay-as-you-drive" auto insurance policy, if the state legislature passes a bill introduced by Assemblyman Jared Huffman, D-San Rafael.

AB 2800 would allow insurance companies to offer voluntary mileage-based insurance to drivers in California, in addition to offering discounts based on the reporting of miles traveled, said Huffman.

This would provide an incentive for people to drive less, which would reduce greenhouse gas emissions, he said. And with gas prices approaching $5 per gallon, drivers may not need much more incentive.

The pay-as-you drive insurance option is available in 34 other states.

Listen KCBS' Susan Kennedy reports  Susan Kennedy

 

 

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