Jul 10, 2009 -- California experimenting with pay-as-you-drive insurance
More auto insurers are experimenting with pay-as-you-drive insurance.
Progressive Insurance has been one of the pioneers in this field. They have a system where they can equip your car with a smart device -- almost like a black box in an airplane -- that tracks when, where and how much you drive (in addition to your driving style) in order to calculate your premiums.
Years ago, California had a proposal where the more gas you bought, the more you paid for auto insurance. Needless to say, the idea didn't work.
Now California is on to the pay-as-you-drive idea, with a number of big insurers trying it out. This is a completely voluntary program for drivers that they can opt in or opt out of.
Clark loves the idea of this type of insurance, though he realizes many motorists may have their reservations.
In another example, GMAC Insurance offers discounts to drivers of certain GM models if they agree to have their mileage tracked by OnStar.