Is California's Pay-Per-Mile Auto Insurance Worth it?


Residents in the state of California have been begging for an affordable car insurance alternative and it seems as though they may soon get what they’ve been asking for. The next time you start shopping for free California auto insurance quotes, ask the agent or company you are dealing with whether or not they are planning to offer a pay-per-mile option.

How Pay-Per-Mile Auto Insurance Works

The theory behind California’s pay-per-mile proposal is very simple. The less a driver is on the road, the less likely he is to be involved in an accident. Those who aren’t involved in accidents aren’t filing costly insurance claims and, as such, shouldn’t have to pay as much for insurance.

While none of California’s auto insurance carriers have released details on how the program would work yet, we assume it will be similar in nature to that found in Texas. Drivers would be able to obtain free insurance quotes for California auto insurance online but instead of choosing simple limits and getting an annual rate they’d choose the number of miles they wish to purchase. The policy price would be calculated based on a certain number of cents per mile. If you drive more than you anticipated, you simply have to pay the bill for the extra.

The Ecological Impact of Pay-Per-Mile Car Insurance

The question of whether or not a pay-per-mile plan would have a huge impact on pollution in California is yet to be seen. These intuitive policies may end up proving beneficial to those who already driver very little while forcing those who drive frequently to stay with a standard auto insurance plan. The state does hope, however, that this type of plan will inspire some people to drive less, thus cutting down on traffic problems throughout the state.

It’s safe to say that pay-per-mile plans will be available in the near future. California’s insurance commissioner has approved legislation that will allow insurance companies to implement the technology necessary to monitor mileage and usage but no one has yet submitted a plan for rating for approval.

When the plan does become available, you’ll be able to use our sites to obtain and compare quotes for California auto insurance. Drivers should take advantage of their ability to obtain free California auto insurance quotes to compare pay-per-mile plans to standard plans. You may be surprised at the potential savings!

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