Pay-as-you-drive Auto Insurance

According to Marc Lifsher's article in the Los Angeles Times, "Pay-as-you-drive" auto insurance is on its way to California. Our insurance commissioner claims that the scheme will reduce traffic, emissions and fuel consumption, while saving consumers money and preserving insurance company profitability.

Right now, the insurance companies can give discounts to drivers who drive below the average number of miles. On my current insurance bill, it's noted that I drive fewer than 7,500 miles per year, but there's no specific discount or benefit attached to that figure. According to Lifsher's article, "Variations of pay-as-you-drive insurance are available in 34 states as well as in Canada, Europe and Japan."

Do you have a "Pay-as-you-drive" insurance policy? How is it working out for you? Do you save money, as the insurance companies claim you will, or do you find yourself watching every mile?

Click on "comments" below and share your experience.

Photo © Getty Images