Why mileage based auto insurance might work

January 19, 2012

In this election season, we heard a lot about reducing the role of the federal government. Allow countries to decide. Speaking of national legislation, such as Roe v Wade returned to the United States. Even when the EPA and other federal agencies. The voice of small government Republicans and Democrats throughout the campaign.

Then run the auto insurance based on mileage, has been hovering for years in the state legislature of sensible things, and people do not drive more people continue to pay up to 30% more for auto insurance than they should. Society suffer too much, losing an effective economic incentives, less unnecessary driving accident rate is still high and the environments suffer. Is not that like should have been authorized by the federal government seems to do something?

I do not advocate the task of the federal government, car insurance companies pay as you drive (PAYD) – I believe in free markets but to find out how to adjust their lost national insurance regulations to adapt to this potentially game-changing options for a task . With the deadline.

Mileage-based insurance or PAYD in 1925 for the first time to explore. Since then, this problem has been studied and analyzed, and re-dozens of times. With the advent of technology, monitoring of real-time mileage, get the issue of environmental protection, social justice advocates and safety of supporters, from the PAYD people have found significant benefits of steam between.

And for a time, the federal government appears ready to get involved. In 1998, the U.S. Environmental Protection Agency-sponsored effort to examine the PAYD car insurance is concerned. The idea was to take into account the approximate time-based policies and regulations created by the national pricing and availability issues to explore a rewrite. In 2001, Texas, a state, there is no statutory limit block PAYD is the first to allow it. Major auto insurance companies have begun to seriously look at the market, explore, monitoring approach, and the establishment of actuarial tables to help determine the pricing.

I have never heard of PAYD or mileage-based car insurance, until I read about it in the solution to climate change, local environmental groups unite to support communications legislation that will allow auto insurance companies to provide PAYD Washington drivers. Transport chosen partner, their goal is to improve the environment: recent Brookings Institution estimates that if all motorists to buy PAYD, driving by 8 percent, carbon dioxide emissions fell by 2%. PAYD is second only to carbon pricing, effectively reducing the car’s carbon far more than than HOV lanes or congestion pricing useful:

Washington is famous for progressive politics. It’s consumer protection law is strict, and its practice in the United States is the most sensitive environmental issues. However, only three years ago, the first bill to allow the introduction of PAYD. The bill has not passed. Commissioner of Insurance in Washington eager to PAYD and support the Bill. So, what is holding it?

Auto insurance companies do not PAYD products. According to Carrie Dolwick, lobbyists transport options, “Auto insurance is a mature market differentiation despair, green mileage-based insurance certificate is very attractive and some companies have risen, have equipment and pricing / actuarial tables of all work that have not yet concerned about their competitive advantage. ”

Ah, at work unfettered capitalism. PAYD has been delayed until the late 00; 10 countries, most countries still do not allow them. Insurance companies can avoid dragging the country had to give up the heel of interest, reduce poverty, accidents and carbon dioxide emissions problems. Is this not what we expect the federal government to avoid it?

Filed under: auto insurance — admin @ 11:58 pm

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