- Report a typo
-
SACRAMENTO, CA (KGO) -- You could save money on car insurance, if you drive less, according to a new car insurance proposal being talked about by the state.
Even a slight dip in gas prices isn't enough to get some Californians back behind the wheel. Over $4 a gallon is still too high for drivers like Melissa Villarana.
"I stay at home, I surf the Internet, walk around the block. I don't go anywhere," said Villarana.
Villarana's reward may be cheaper car insurance. Insurers now rely on their customers to estimate their mileage with no one really checking. Most overestimate, and therefore pay too much.
The California Department of Insurance may start allowing policies based on actual miles driven, a practice known as "Pay-As-You-Drive."
"That will encourage more people to drive less, and that will have a tremendous positive impact on the environment, traffic safety and on traffic congestion," said California Insurance Commissioner (R) Stephe Poizner.
The insurance industry likes it because fewer miles on the road means fewer accidents and few claims paid out.
While the devil is still in the details, some sort of device would be installed in vehicles so that actual miles driven could be electronically sent to the insurer.
Some consumer groups worry that device would be similar to a GPS which could collect other information, where drivers have been, how badly they're driving and who knows what the insurance companies will do with that data.
But Commissioner Poizner who made his fortune in Silicon Valley says that technology could be made without a tracking feature.
Still, while policies currently on the market will continue to be sold, some drivers don't like being snubbed for living in a city that doesn't have great public transportation.
"It would be punishing people that were driving a lot to work and back, getting their kids to schools, that kind of thing," said frequent driver Stephen Elliott.
But for walkers and bikers, they want a reward for their sacrifice.
"It's a nice little price break for me," said Villarana.
Pay-As-You-Drive policies could be on the market as early as next year.
(Copyright ©2009 KGO-TV/DT. All Rights Reserved.)
politics, nannette miranda
- Report a typo
-
Sponsored Content
Advertisement
- Packers beat 49ers at Lambeau Field, 30-24
- Jackson, Swift face off at American Music Awards
- abcnews: 9/11 defendants plan to plead not guilty
- Iran begins war games to protect nuclear sites
- Fatal plane crash near Watsonville investigated
- Six arrested after beating at Sequoia High School
- Assault on 12-year-old may be tied to Facebook
- Stabbed SF muralist returns to work
- `New Moon' wolfs down $140.7M in opening weekend
- weather: Bay Area weather forecast for Monday
-
Most Popular
-
Most Viewed StoriesMost Viewed VideoMost Viewed Photos
Advertisement
ABC7 Everywhere
Wireless
Breaking news as it happens. Sign up now!
Visit our mobile site at abc7newstogo.com.
Get our iPhone application.
Newsletters, Alerts, and RSS
Sign up for our newsletters to get news, weather and other alerts via email.
Get breaking news alerts on your desktop
With our RSS feeds, get real-time updates of abc7news.com using your favorite news reader.
Contests, Promotions, and Registration
Check out our contests and promotions. There are always great opportunities to win!
Become a member to enter contests, comment on stories, receive newsletters, and more!
Advertisement
- abc7news.com home
- Site Map
- RSS
- Advertise with Us
- Contact Us
- DTV Reports
- Technical Help
- ABC.com
- ABCNews.com
- Privacy Policy
- Safety Information for this site
- Terms of Use
- Copyright ©2009 ABC Inc., KGO-TV/DT San Francisco, CA. All Rights Reserved.





