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Aug 09, 2006 -- Why not base insurance premiums on mileage

Clark has talked in the past about an auto experiment in England, whereby people are charged an insurance premium based on the number of miles they drive. The device tracks everything from speed to the type of conditions in which you’re driving as well. It’s become such a huge success that the insurer in the English experiment has had to order many more spy devices for cars. Now, 40,000 people are driving with these devices in England and more people want them. It’s spread to Japan, too. So what about the States? Well, 27 states here have laws on the books saying it’s possible to charge people based on miles. But no one has put it into practice. Clark loves the idea and hopes it takes off. Now, this wouldn’t work for people who drive a lot of miles. But it would be great for people who don’t drive a lot, like Clark.

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What others are saying

  • Tax by the mile
    Figures that Howard would like this idea. A cheapskate would trade his liberty and privacy to save a couple of dimes. Shame on you. Take that idea and pound sand.
  • Car Insurance
    You ran an article about car insurance premiums may be based on mileage, but you didn't know of any. My insurance
    just raised my premium 25% based on last year's increase in mileage on one car, but I had 2 cars the previous year so the total mileage was the same!
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