Pay As You Go Car Insurance
August 19, 2008
Back to News Home
Insurance companies are starting to reward drivers who have a smaller carbon footprint that drive at slower speeds, hit the brakes softer, and drive less overall. All of these things help the driver reduce their carbon footprint, and reduce the chances of accidents.
While this is still in its infancy, the required technology is emerging to reward drivers with a smaller carbon footprint. A driver needs to install a device to their car that will track how far and the style that they drive. This data can then be uploaded to the insurer, or sent to them automatically.
For drivers worried about their privacy, they should note that the tracking device does not have a GPS tracker so insurance companies will not be able to access the location of the drivers.
So far, two major insurance providers in the US, Progressive and GMAC Insurance, are offering pay as you go discounts to their customers.
Research by the Brookings Institution shows that if this were widely adopted in America, it could reduce total mileage by 8% with the corresponding reduction in carbon emissions in the country. On top of that, the average driver stands to save over $200 on their insurance premiums.
Share This Story: |