News Cheap Insurance for Infrequent Drivers?
posted by January 30 at 11:01 AMon
While Greg Nickels has been busy pushing for his new waterfront freeway, King County Executive Ron Sims has been working to secure funding for pay-as-you-drive insurance— an innovative program that charges drivers based on how much they actually use their cars. Pay-as-you-drive is more equitable than traditional one-size-fits-all insurance programs, because it doesn’t penalize people who drive less than the norm (or reward people who drive more than necessary). And because it reflects the true cost of driving more closely (much like, say, buying gas), pay-as-you-drive encourages people to think about their car use and plan trips more carefully. Sims staffer Jim Lopez says the county hopes to secure nearly $6 million in public and private funds toward a pilot project with a single insurance company, with the hope of expanding the program if it’s successful. A poll on Sims’s web site currently shows that 57 percent of respondents say they would drive less if they paid for insurance by the mile.