Pay-As-You-Drive

By charging drivers for each mile they travel, rather than a fixed amount, pay-as-you-drive insurance could cut driving by eight percent nationally, or more than eleven percent in New York State, says a Brookings Institution report.

Transportation officials in Texas are recommending a fresh look at the prospect of taxing the state's drivers by the mile.

California has finally begun to encourage insurance companies to offer "pay as you drive" (PAYD) insurance policies. The Natural Resources Defense Council says it's a half baked policy.

Washington's top transportation official has indicated support for the idea of beefing up transportation funds by taxing drivers by the mile.

The State of California is considering a plan to allow pay-as-you-drive car insurance plans. Many hope the move will encourage less driving.