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07/18/2008 08:40 AM
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California Considering Mileage-Based Car Insurance
SustainableBusiness.com News
Mileage-based car insurance, also known as pay-as-you-drive (PAYD), is beginning to take hold.
The California Assembly passed a bill that would enable insurance companies and their customers to voluntarily sell and purchase insurance based on the verified miles driven by the insured vehicle.
A Brookings Institution study estimated that PAYD insurance would reduce vehicle miles by 8% and save most households an average of $270 per car.
The Bill (AB 2800) will be taken up by the state Senate Appropriations Committee in August before moving to the Senate floor for a vote.
Oregon passed a similar law in 2003. Pilot programs are also underway in Georgia and Massachusetts.
