Drivers may be required to attach monitoring device

LOS ANGELES (CNS) — A newly approved pay-as-you-drive state initiative allows Southland motorists to pay for car insurance based on how much they drive, insurance officials announced Thursday.

“The voluntary pay-as-you-drive initiative is an innovative program that will allow insurers to offer plans based on more accurate mileage, so that people who choose to drive less will pay less for auto insurance,” said Insurance Commissioner Steve Poizner.

KNX 1070’s Bill Cooper reports

Filings by the Automobile Club of Southern California and State Farm Mutual Automobile Insurance to offer the coverage were approved by the state Department of Insurance, and Poizner said he hoped other companies will follow suit.

Starting in February, State Farm customers can choose the new verified mileage plan, labeled the “Drive Safe and Save” program.

Under the plan, State Farm will offer an initial 5 percent discount for the first policy term to insured drivers who agree to self-report their odometer readings at the beginning and end of each policy period or who agree to allow the company to access their mileage data automatically when the insured’s vehicle has a monitoring system, according to the company.

Also in February, the Auto Club’s “Pay-Drive” program will be made available to insured drivers who agree to report their odometer readings at the beginning and end of each policy period or who agree to attach in a small monitoring device to their vehicle.

Depending on usage, those who verify how many miles they drive will pay 1 percent to 10.5 percent less for insurance than those in the same “mileage band” who estimate their mileage, Poizner said.

(©2010 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)

Comments (8)
  1. bigjim says:

    What this clown does not tell you is that the little “monitoring device” is like a black box and it will report how fast you drive, when you drive, how hard you brake, etc. That will enable “big brother” the insurance companies and later the government to watch everything you do. It’s a good thing this clown lost the Republican nomination for governor. Of course if it will allow companies to charge more and offer less then all Republican politicians are going to be for it.

  2. 2958 says:

    What a bunch crooks! Why dont they base it on your drving history… Not were you live what kind of car you drive….u pay to insure the other persons car what a F..CKN joke…. Money hungry A..HOLES!!!!!!!!

  3. Corkie Boucher says:

    This is how we make insurances in Batislava. Once i had car, 4 cylinder fast as donkey on speed. My insurance tell me to make no more than 400 kilometers per month. I do this, and they take less money from pants pocket. This is good idea, it will make drive in LA less people.

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