I'm very excited that California is considering allowing Pay as you Drive Insurance .I strongly believe in consumption based metering :-)
Progressive Insurance has offered this in a few states, You can get more details @  http://www.progressive.com/myrate/
So the concept is that you have a GPS based device which records your speed/location/miles driven/time driven etc.

From my point of view there are 2 benefits.

• Lower cost for infrequent drivers
• It will force  us to drive less and help the environment 

My only biggest concern at this point is the privacy issues around it.I don't have a problem with they tracking speed etc because it will force us to not to speed etc but I thing recording the locations of where you are going and when you are going etc is too intrusive.
My hope is that Progressive respects our privacy and I'm pretty sure this concept will take off.Without the privacy issue addressed I feel that this will fail.
You can read more @ the paper http://www.brookings.edu/papers/2008/07_payd_bordoffnoel.aspx

posted at: 02:12 | category: /politics | permanent link to this entry