California Releases New Draft of Pay-As-You-Drive Regulations
04 Aug 2009
"After releasing the last draft of the Pay-As-You-Drive regulations, we received dozens of comments from consumer groups, the insurance industry and other interested parties. After careful consideration of these comments, I have issued revised regulations that will continue to protect the privacy of California drivers while paving the way for insurance companies to offer innovative Pay-As-You-Drive and "price per mile" insurance," Commissioner Steve Poizner said in a statement.
Commissioner Poizner originally proposed the Pay-As-You-Drive regulations last summer to make a new, more mileage-accurate auto insurance option available for California consumers. The regulations were last revised in June 2009. The revised regulations also allow insurers to offer discounts to drivers who opt to purchase a mileage verification policy.
If a driver elects to purchase a Pay-As-You-Drive policy, the insurer would verify the driver's miles through a variety of methods, including odometer readings taken by the insurer or its agents or vendors, auto repair dealers, smog check stations, self reporting by the policy holder or a technological device placed in the consumer's vehicle.
The regulations would not affect existing multipurpose devices such as GM's Onstar system or the use of a technological device as part of an emergency roadside assistance program.
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