The California Department of Insurance wants Golden State drivers to drive less, save money and save the planet, all at the same time.
Insurance Commissioner Steve Poizner said Wednesday he’s planning to make a new green automobile insurance option, known as “pay-as-you-go,” available to California drivers as early as the fall of next year by proposing new regulations that will make the new option feasible.
Poizner, a Republican, described this as a way for consumers to “more accurately” pay for the coverage they need, by linking their auto premiums more closely with the number of miles they actually drive. By encouraging consumers to drive fewer miles, and thus reducing their insurance costs, the new insurance option could help reduce both greenhouse gases and vehicle accidents.
“As a strong advocate of healthy market competition and a healthy environment,” Poizner added, “I am especially pleased to encourage this kind of innovation and additional options for consumers.”
The Environmental Defense Fund estimates that if 30 percent of Golden State drivers participate in this new form of voluntary coverage, the state could avoid 55 million tons of carbon dioxide between 2009 and 2020 — the equivalent of taking 10 million cars off the road. This would save an estimated 5.5 billion gallons of gas and $40 billion dollars in car-related expenses.
