Pay As You Drive Insurance

A Texas company rewards drivers for driving less (Envirothink, July 9, 2010)

Also noted here: Milemeter

As a completely different way of discouraging unnecessary driving to road pricing, an insurance company in Texas rewards their clients for driving less. Although this may not lead to fewer cars used in each household, it appears to have promise in reducing how much each car is used – and in a way that is independent of government. It will be interesting to see how many other insurance companies begin to offer the same type of insurance to their clients.

Key Quotes:

“Pay-per-mile auto insurance configures rates based on miles you drive. The lower the mileage, the lower your rates.”

“We attract people who are hyper-local drivers..They’re urban professionals, small business owners, retirees, stay at home Moms, students.”

“The average auto insurance policy in Texas.. runs between $600 – $700 a year. His average customer in Texas pays $200 a year!”

“the environment and communities benefit too. With less driving, there’s less air and water pollution from car emissions, less runoff, and fewer traffic injuries and fatalities.”

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