'Pay As You Drive' Insurance

'Pay as you drive' insurance will soon be a reality in California, surviving the state senate as a voluntary program that environmental groups say will encourage people to drive less by saving them money on their car insurance.

2 minute read

September 2, 2008, 1:00 PM PDT

By Irvin Dawid


"The program, dubbed "pay as you drive" in which drivers document their mileage and pay accordingly, will encourage motorists to drive less, saving fuel and reducing carbon emissions, environmental groups said. In doing so, they also would lower their insurance premiums."

The legislation, AB 2800 (Huffman), was amended earlier this month to drop a controversial clause of tracking miles through a global positioning device. The original bill drew criticism from Consumer Watchdog, a Santa Monica-based nonprofit, which said the practice would constitute an invasion of privacy. While the legislation died, the proposal will go forward with a plan from Insurance Commissioner Steve Poizner. Consumer groups feared privacy invasion from tracking devices, so mileage will be verified from odometer readings, not GPS.The regulations will be voluntary and are expected to take effect by fall 2009.

While insurance companies already take mileage into account when setting rates, pay-as-you-drive links premiums more closely with the actual number of miles driven. Under the new regulations, consumers could verify mileage by odometer readings, repair records or a technological device used to collect mileage data. Poizner made it clear, however, that insurance companies could not require tracking software."

From Insurance Commissioner's Press Release:

"The Environmental Defense Fund estimates that if 30% of Californians participate in this voluntary coverage, California could avoid 55 million tons of CO2 between 2009 and 2020, which is the equivalent of taking 10 million cars off the road."

Thanks to Gladwyn d'Souza?

Thursday, August 28, 2008 in San Francisco Examiner

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Redlining map of Oakland and Berkeley.

Rethinking Redlining

For decades we have blamed 100-year-old maps for the patterns of spatial racial inequity that persist in American cities today. An esteemed researcher says: we’ve got it all wrong.

May 15, 2025 - Alan Mallach

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

May 14, 2025 - Diana Ionescu

Rendering of California High-Speed Rail station with bullet train.

California High-Speed Rail's Plan to Right Itself

The railroad's new CEO thinks he can get the project back on track. The stars will need to align this summer.

May 19, 2025 - Benjamin Schneider

Sign for Loma Alta Park in Altadena, Los Angeles County.

A Park Reborn: Resilience and Renewal in Fire-Stricken Altadena

Rebuilt in just two months after the devastating Eaton Fire, Loma Alta Park now stands as a symbol of community resilience and renewal, even as some residents hope recovery efforts will continue to support housing stability and long-term equity.

4 seconds ago - Pasadena NOw

Colorful historic homes in Madrid, Spain.

Spain Moves to Ban 66,000 Airbnbs

The national government is requiring the short-term rental operator to remove thousands of illegal listings from its site as part of an effort to stem a growing housing crisis.

2 hours ago - The New York Times

People with bikes ordering at food trucks outdoors.

Raleigh Launches Greenway Food Truck Pilot to Enhance Park Experiences

Raleigh’s new Greenway Food Truck Pilot Program brings local food vendors to popular greenway locations to enhance park experiences, support small businesses, and encourage community use of public spaces.

4 hours ago - City of Raleigh

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.