On August 28th, California Insurance Commissioner, Steve Poizner laid out the groundwork for greener auto insurance options. The new greener options also may reduce premiums. Insurance Commissioner Poizner unveiled last week his Pay as you drive, green insurance option. The ultimate goal of this plan is to reduce co2 emissions and reduce premiums.
Poizner hopes this move will have a positive impact on the environment. The plan envisions that people will start driving less with the immediate goal of saving money, but at the same time putting less co2 in the air from automobile emissions. As a result, the air will become cleaner and less polluted from vehicles. A study conducted by the Environmental Defense Fund estimated that if 30% of Californians participate in this new voluntary coverage, the state of California could avoid 55 million tons of CO2 between 2009 and 2020. That is the equivalent of taking 10 million cars off of the road!
In addition to the positive effects on the environment, the new plan will have a positive impact on Californian’s wallets. One hope is that insurance premiums will go down. Since the new plan calls for miles driven to account for more of the premium base, the hope is that people will start driving less. And as a result of the decreased driving, estimates show that Californians can save approximately $40 billion in vehicle related expenses, including gas, maintenance and repairs.
To participate in the program, drivers will have to verify their actual odometer reading. Drivers will be able to do this through automotive repair/service records or a technical device used to track mileage. While the pay as you drive program is still in the planning stage, contact your auto insurance company for ways to save money right now.
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