California moves closer to pay-by-the-mile auto insurance

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  1. Denny Crane

    Denny Crane It's not even loaded! Staff Member Administrator

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    http://www.mcclatchydc.com/256/story/78224.html

    California moves closer to pay-by-the-mile auto insurance

    Jim Sanders | The Sacramento Bee

    last updated: November 03, 2009 06:53:39 AM

    Car insurance by the tankful?

    Not quite, but California moved a step closer last month to pay-as-you-drive policies that could allow motorists to buy insurance like they do gasoline — a little at a time.

    Insurance Commissioner Steve Poizner released regulations permitting and authorizing mileage verification for pay-as-you-drive, without dictating what form such plans must take.

    The goal is to use per-mile pricing to entice Californians not to drive so much, thus easing air pollution, relieving traffic congestion and lowering the number of traffic collisions.

    A first-of-its-kind plan is MileMeter, available only in Texas, which last year began offering six-month policies with chunks of insured miles ranging from 1,000 to 6,000 miles. When the "tank" runs dry, motorists buy more.

    To read the complete article, visit www.sacbee.com.
     
    Denny Crane, Nov 3, 2009
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  2. Denny Crane

    Denny Crane It's not even loaded! Staff Member Administrator

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    John Garamendi used to be the insurance commissioner for California years ago. Back then, he proposed a small gas tax (per gallon) to pay for govt. no-fault auto insurance.

    I liked the plan back then and think it's still a good idea. Obviously it depends on how much the tax is, though.

    The people who drive the most are generally the biggest risk, not in all cases. Just by being on the road there's some small risk, the more time on the road, the more that risk.

    EDIT: Garamendi is likely to be the next mayor of SF.
     
    Denny Crane, Nov 3, 2009
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  3. elcap15

    elcap15 I slap you

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    I am going to have to go ahead and disagree with you there. I dont think there is any correlation between mileage driven and riskiness.

    Think of how little old people drive and how risky they are behind the wheel.

    Im pretty sure I read somewhere that most accidents happen close to home anyway.

    Furthermore, people who drive more consume more gasoline. Since gas is taxed per gallon, they are paying more in taxes already.
     
    elcap15, Nov 3, 2009
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  4. blazerboy30

    blazerboy30 Well-Known Member

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    You're being sarcastic, right? If not...

    Swap "riskiness" for "total risk", and there definitely will be a correlation.

    Now you have introduced a new variable, age. Take the same person and have them drive 10 miles per year, versus 10k miles per year. In which scenario are they more likely to be in an accident? Clearly, there is more "risk" if the person drives 10k miles per year instead of 10.

    That is because people drive the majority of their mileage close to home. Again, more miles driven will increase the overall risk, or chance of accident.

    I agree. One would hope that this tax would be used to decrease other existing taxes, but I think we all know that isn't going to happen. We'll just pay more taxes.
     
    blazerboy30, Nov 3, 2009
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  5. Denny Crane

    Denny Crane It's not even loaded! Staff Member Administrator

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    You'd pay more taxes on gas, but you'd not have to buy auto insurance.
     
    Denny Crane, Nov 3, 2009
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  6. Shapecity

    Shapecity S2/JBB Teamster Staff Member Administrator

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    If they really want less cars on the road make the gas $5.00 per gallon again. I prefer higher gas than this pay per mileage insurance non-sense. Most people in Southern California don't commute very far mileage wise. The problem is too many vehicles on the road and terrible reaction time to clearing out accidents. We learned two summers ago that $5.00 per gallon gas made people think twice about driving.
     
    Shapecity, Nov 3, 2009
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  7. Buzz Killington

    Buzz Killington Great Sea Urchin Cerviche

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    Don't they ask you how much you drive per year? I always lie and way undershoot it, thought that affected insurance rates

    If they do this, they should also charge for what freeways you travel on.....the 110 near downtown is psycho!
     
    Buzz Killington, Nov 3, 2009
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  8. Denny Crane

    Denny Crane It's not even loaded! Staff Member Administrator

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    $5 gas seems like a good idea, depending on where you live. It certainly would make the cost of food higher, if it's trucked to the store near you. It would really hurt tourist destinations where people like to drive...
     
    Denny Crane, Nov 3, 2009
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  9. Buzz Killington

    Buzz Killington Great Sea Urchin Cerviche

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    I agree. Like I've stated previously, higher gas prices will cause consumers to be more fuel efficient if that's their main objective. Perhaps make a passenger vehicle gas tax that does not apply to commercial vessels and transport.
     
    Buzz Killington, Nov 3, 2009
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  10. STOMP

    STOMP mere fan

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    That would seem like an easy enough issue to sidestep through tax breaks/writeoffs for those businesses affected... whether or not people with long commutes would qualify for similar tax breaks could be dealt with separately as well.

    STOMP
     
    Last edited: Nov 3, 2009
    STOMP, Nov 3, 2009
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  11. Shapecity

    Shapecity S2/JBB Teamster Staff Member Administrator

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    Good then people will eat less and/or waste less food. I don't think tourist destinations will be effected. The US dollar is so weak right now a few bucks more won't cause any tourists to flinch.
     
    Shapecity, Nov 3, 2009
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  12. Denny Crane

    Denny Crane It's not even loaded! Staff Member Administrator

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    I was thinking more like people driving from LA to Vegas. Or from nearby states to Disneyland.
     
    Denny Crane, Nov 3, 2009
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  13. Shapecity

    Shapecity S2/JBB Teamster Staff Member Administrator

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    People in LA should be flying to Vegas. I never understood why anyone would drive there when it's a 45 minute flight. The airlines could use the extra business too! Southwest always has those $39.00 internet specials. Not to mention a lot of casinos are flying people out to get them on the gambling tables.
     
    Shapecity, Nov 3, 2009
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  14. BLAZER PROPHET

    BLAZER PROPHET Well-Known Member

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    Why not keep truck diesel at $2/gallon to keep food low and raise gas to $5/gallon?
     
    BLAZER PROPHET, Nov 3, 2009
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  15. Shapecity

    Shapecity S2/JBB Teamster Staff Member Administrator

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    That's a great idea actually. :clap:
     
    Shapecity, Nov 3, 2009
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  16. Denny Crane

    Denny Crane It's not even loaded! Staff Member Administrator

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    When I lived in Vegas, I saw license plates on cars from probably all 50 states.

    Does Southwest have a flight to the grand canyon?

    Ford has a car that gets 60MPG on diesel fuel, but it's against the law to sell it here, especially California.
     
    Denny Crane, Nov 3, 2009
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  17. Buzz Killington

    Buzz Killington Great Sea Urchin Cerviche

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    Because if you go in a car of 5 people its like 20 bucks each in gas. When you factor wait times at the airport, taxis, etc, its about break even. Driving is slightly longer but if someone else is driving you just knock out. We drove to vegas in a group when gas was about $4.60 a gallon, in the desert it was over $5 I think...but we took a friend who had a Prius so it was all good.

    For me, I live by LAX so I cab it to the airport. Its $15 to the airport, then wait an hour for the flight, a 40 minute flight, a $15 cab ride from Vegas airport to the hotel. Plus its about $150 to fly round trip on the weekends...so flying is about $200-250 for a Friday-Sunday trip. multiply by 4 people, you'll see that driving is a lot cheaper.

    I've driven between LA and Vegas at least 100 times...I used to go every month, its not that big of a deal.



    Oh yeah, if you drive you can bring drugs too. :devilwink:
     
    Buzz Killington, Nov 3, 2009
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  18. Shapecity

    Shapecity S2/JBB Teamster Staff Member Administrator

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    That's the only point I'd concede. :cheers:
     
    Shapecity, Nov 3, 2009
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  19. MARIS61

    MARIS61 Real American

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    If the goal is to limit driving, STOP BUILDING AND REPAIRING ROADS! (and stop taxing us for them)

    If you keep spending tax $ on more roads, then don't tax me again because I'm using them.
     
    MARIS61, Nov 3, 2009
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  20. barfo

    barfo triggered obsessive commie pinko boomer maniac Staff Member Global Moderator

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    We were somewhere around Barstow on the edge of the desert when the drugs began to take hold.

    barfo
     
    barfo, Nov 4, 2009
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