DrCashFlow
Champion Author
Massachusetts
Posts:2,430
Points:691,395
Joined:Jun 2008
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Message Posted: Nov 19, 2009 4:06:23 AM
kind of depends on cost per mile.
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POLELANE
Champion Author
Ohio
Posts:6,287
Points:715,320
Joined:Mar 2008
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Message Posted: Nov 19, 2009 2:23:30 AM
their bureau of motor vehicles can just check their odometer each year during the vehicles' safety inspection and bill them as a percent per mile.
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boutmuet
All-Star Author
Orange County
Posts:850
Points:286,770
Joined:Apr 2009
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Message Posted: Nov 19, 2009 2:21:30 AM
Bad idea. Thanks I'll keep my regular insurance since I drive 20,000 miles a year because of school. I don't need anyone tracking me, even if it just my mileage numbers.
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MPGKing
All-Star Author
New Jersey
Posts:874
Points:227,570
Joined:Mar 2009
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Message Posted: Nov 18, 2009 11:44:01 PM
Bad idea - only opens the door to being taxed by the mile.
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car253
Champion Author
Ohio
Posts:1,996
Points:543,200
Joined:Oct 2008
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Message Posted: Nov 18, 2009 11:39:23 PM
Not something I would be interested in.
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OHMS
Champion Author
Orange County
Posts:8,047
Points:907,685
Joined:May 2005
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Message Posted: Nov 18, 2009 10:04:13 PM
I'd love that law; I have four Paseos each of which gets 35-40 mpg; to and from work 4 miles away. I don't wear out the road and the air and the water like you long distance migrant workers. You wear out the roads; you pay to fix them. you dirty the air; you pay to clean it; I only wish I paid one fourth the auto insurance; I only can drive one at a time;
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computernut2008
Champion Author
Ohio
Posts:1,639
Points:397,125
Joined:Oct 2008
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Message Posted: Nov 18, 2009 8:02:55 PM
My mom was 91 and didn't drive anymore but I used her car to take her to the
store 1 time a month. Total of 2 miles..Her insurance was $50.00 and month
and her agent said that was a good deal..Now that is theft in my opinion.
This car was an 85 Plymouth Reliant that was the last car her and my dad bought new.. She signed this relic to me and it cost 15.00 a month to drive
it anywhere..However even though the insurance people are a rip the government will be worse.
I remember in the 80's when they passed the insurance law in Ohio I was against it. Not because I didn't think you should have it but,they were saying it would reduce rates..Yea right...Passing a law REQUIRING you to buy something will always bring the price down RIGHT sure it will..
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Gas Thirsty
Champion Author
Los Angeles
Posts:1,875
Points:2,296,100
Joined:Mar 2003
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Message Posted: Nov 18, 2009 7:57:30 PM
This an unfair plan. It discriminates people who have to drive far to work.
Insurance rates should be based on driving records, type of vehicles and residencies.
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bobdec
Champion Author
Florida
Posts:4,259
Points:834,650
Joined:May 2008
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Message Posted: Nov 18, 2009 7:56:04 PM
Another way to control us
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DerHahn
Champion Author
Illinois
Posts:8,089
Points:1,144,100
Joined:May 2004
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Message Posted: Nov 18, 2009 6:42:34 PM
don't really mind the idea for use on my car. it only gets used in the winter or during bad weather. the scooter only cost $100 a year so not worried about that.
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LilRedWagonIN
Champion Author
Indiana
Posts:2,803
Points:601,855
Joined:Oct 2008
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Message Posted: Nov 18, 2009 6:29:17 PM
It's scary: Canada requiring pay-per-mile taxes and hefty fines and imprisonment if drivers do not submit to Big Brother recording of vehicle data. California getting their nose in the tent by doing the same thing of GPS recording of miles (and speed and where the vehicle goes). The energy companies are in this control freak mode with "intelligent" thermostats in homes so that heat can be controlled remotely (by government?). Technology can be promoted by all kinds of benefits, but the hidden agenda is an all-knowing Big Brother - whether by insurance companies, government, or marketing firms.
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lgwhitlock
Champion Author
Chico
Posts:2,809
Points:719,275
Joined:Jun 2008
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Message Posted: Nov 18, 2009 6:24:43 PM
And as more people use it the closer we will be to having Big Brother...
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fullcirclethink
All-Star Author
Washington
Posts:537
Points:47,290
Joined:Jun 2009
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Message Posted: Nov 18, 2009 6:20:27 PM
First: why would the insurance companies go for this? It will only add to their paperwork. Second: isn't it a statistical fact that most accidents happen close to home? If this is true, it won't matter if they drive fewer miles; they cause most of the accidents anyway! Definitely another way to control the masses and limit our freedoms by hitting our wallets.
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Zonk
Champion Author
Michigan
Posts:1,558
Points:1,145,690
Joined:Oct 2005
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Message Posted: Nov 18, 2009 6:17:59 PM
To control such a policy would be a nightmare.
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truckguy115
All-Star Author
Orange County
Posts:854
Points:141,600
Joined:Apr 2008
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Message Posted: Nov 18, 2009 6:15:07 PM
just because some of you live outside this stupid i live in. don't think for one second cancer like this won't spread outside here. it can and will spread if enough people do it or are forced to use it. more like forced is what i see happening.
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jcurley
Champion Author
California
Posts:3,387
Points:833,940
Joined:Dec 2007
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Message Posted: Nov 18, 2009 6:14:05 PM
Sorry, but the only way to make Americans change their driving habits is to have the price of gasoline hit $4-$5 a gallon. THEN THEY PAY ATTENTION!
And I beg to differ that a 3000 mile driver is safer than a 8000 mile driver. We already have a two tier insurance thing - over/under 8000, here in CA.
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USNChief
Veteran Author
Jacksonville
Posts:253
Points:39,645
Joined:Oct 2009
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Message Posted: Nov 18, 2009 6:09:06 PM
They better offer a tremendous rate reduction. I do not live in CA. I would not buy this type of coverage. I CAn see many legal battles between policy holders and insurance companies. As we all know the Insurance company will win.
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fasu007
Veteran Author
South Carolina
Posts:451
Points:688,575
Joined:Jun 2008
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Message Posted: Nov 18, 2009 6:04:53 PM
I don't want anyone watching where or when I'm going somewhere, by putting a chip in my vehicle. This story ran a couple of days ago. I'm glad I live on the other side of the country.
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scuffy
Champion Author
Florida
Posts:1,547
Points:894,135
Joined:Apr 2005
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Message Posted: Nov 18, 2009 6:04:17 PM
I think how this will end up is pay by the mile tax just for driving.
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lpj
Champion Author
Macon
Posts:7,377
Points:1,522,065
Joined:Apr 2006
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Message Posted: Nov 18, 2009 6:01:10 PM
something don't sound right about this article !!!!!
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fordmexico
Champion Author
Michigan
Posts:2,131
Points:180,200
Joined:Oct 2009
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Message Posted: Nov 18, 2009 5:58:26 PM
Insurance should not be used to change riving behavior. It is a contract between you and a company that indemnifies for those things as specified in that contract. Driving behavior (tickets-accidents), where you live, the type of your vehicle as well as the miles you drive should be considered when computing premiums. I am also against the use of credit reports to assess risk and thus the premiums you pay. Many people through no fault of their own have seen their credit scores decline. These lower scores lead to higher premiums. Not fair.
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lowpet
Veteran Author
Texas
Posts:279
Points:72,025
Joined:Dec 2008
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Message Posted: Nov 18, 2009 5:58:24 PM
it will be interesting to see how this will work
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Lukus
Champion Author
Halifax
Posts:3,479
Points:707,290
Joined:Nov 2007
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Message Posted: Nov 18, 2009 5:55:19 PM
It might work in California and it might stop some of the heavy traffic on the roads out therre.
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signwiz
Champion Author
Indiana
Posts:1,081
Points:933,625
Joined:Feb 2006
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Message Posted: Nov 18, 2009 5:51:39 PM
Insurance companies only incentive to do this would be to increase revenue. Otherwise, why change?
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dhnbBUG
Champion Author
Pennsylvania
Posts:2,621
Points:730,455
Joined:Apr 2008
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Message Posted: Nov 18, 2009 5:48:25 PM
I hope they figure in other factors besides miles.
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Focus2
Champion Author
Illinois
Posts:3,999
Points:1,210,780
Joined:Mar 2006
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Message Posted: Nov 18, 2009 5:48:06 PM
Save money? Really? That was what the telephone company told me when they switched me from an unlimited calling plan to pay per calls. Telephone bills all went up.
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DonKofAK
Veteran Author
Anchorage
Posts:496
Points:298,710
Joined:Jun 2009
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Message Posted: Nov 18, 2009 5:43:55 PM
NCWebGuy makes some good points. I'd like to build on his observations.
1. Why do we resist change without thinking through the consequences? For example, any change in health care will be bad for me, not good. Is it possible there could be good, bad, and indifferent changes that, on the whole, make things better for me and for you?
2. Mileage alone does not account for exposure to insurable risks; for the fellow below who thinks city drivers will pay less than rural drivers, ask yourself why insurance brokers want to know where you live and drive. Insurers use your zip code to indicate risk, then they adjust the premium accordingly.
3. It seems some people could benefit from a college-level course in insurance because they clearly spend a lot on it without knowing what they're getting. It's like home-buyers thinking the bank is their partner and, when the value of the house drops to less than the loan balance, they can deliver keys to the bank receptionist's desk and walk away. Look up the word "debt" and "loan"; it's not the same as "partner."
Gypsykid; if it sucks to be someone who has to drive a lot, make the changes that make you happier. Find a better solution; stop complaining and victimizing yourself.
Weenerdog; why shouldn't those who incur less risk pay less than those who incur more? Insurance involves a contract binding a party to indemnify another against specified loss in return for premiums paid. I can put my premiums in the bank and, if I'm careful and lucky, I'll have more in the bank than it takes to pay for my losses -- the cost repairing the damage to people and property. On the other hand, if I'm careless and/or unlucky, I'm impoverished. I pay the insurance company to avoid poverty. I'd prefer to pay them a fair price for the risk they take and the protection they provide.
[Edited by: DonKofAK at 11/18/2009 5:45:56 PM EST]
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caddilac
Champion Author
Ontario
Posts:10,642
Points:1,158,080
Joined:Apr 2007
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Message Posted: Nov 18, 2009 5:41:04 PM
I would be in favour of that kind of policy here where I live if it were offered.
I get a small reduction in insurance premiums because I am retired, but I still think I am overcharged for the few miles I actually drive in a year.
People that drive less have a lesser chance of being in an accident, so they shouldn't have to pay as much as those that drive a lot.
And, maybe those that use their vehicles a lot, to make frequent trips to the corner store, will either walk or pay extra for increasing their chance of getting in an accident.
For those that don't want to pay by the mile, well, they can always pay the same as they do now.
People that drive a lot are the ones that increase their chances of being involved in an accident, so they SHOULD pay more.
[Edited by: caddilac at 11/18/2009 5:45:27 PM EST]
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YLHandyman
Champion Author
Orange County
Posts:4,579
Points:828,795
Joined:Feb 2008
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Message Posted: Nov 18, 2009 5:40:51 PM
Great for those who don't drive much.
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julius1st4
Champion Author
Ontario
Posts:1,718
Points:811,290
Joined:Jul 2003
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Message Posted: Nov 18, 2009 5:40:14 PM
What's this got to do with Gas & Oil.
The Auto Insurance Co's [in Ontario} just stated that their rates will
probably increase by 20% next year.
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camel1
Champion Author
Minnesota
Posts:3,775
Points:1,325,550
Joined:Jul 2006
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Message Posted: Nov 18, 2009 5:40:03 PM
It sounds good for those who drive very little, but the rates will be high!
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Joeski1
Champion Author
New Jersey
Posts:3,806
Points:759,480
Joined:Dec 2004
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Message Posted: Nov 18, 2009 5:39:17 PM
I guess if want to tour the countryside you'll need to get a horse now....
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Eichhornchen
Champion Author
Detroit
Posts:2,716
Points:531,165
Joined:Feb 2009
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Message Posted: Nov 18, 2009 5:36:59 PM
Will they give a discount for people who deliver Meals on Wheels?
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Brewernut
All-Star Author
Milwaukee
Posts:854
Points:320,330
Joined:Oct 2008
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Message Posted: Nov 18, 2009 5:36:16 PM
well it makes sense but it is going to be bad for people who have to drive the most
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georgeo
Champion Author
California
Posts:2,491
Points:101,385
Joined:May 2009
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Message Posted: Nov 18, 2009 5:35:59 PM
Somehow they will make you pay more than you normally would.
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1Casey
Champion Author
Albany
Posts:2,117
Points:993,425
Joined:Jun 2004
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Message Posted: Nov 18, 2009 5:33:47 PM
More abuse of the American tax payer.Don't car pool your kids any where. school, scouts, you will be the one paying for it. What about the people who volunteer to delver meals to the home bound? Are they going to pay more for helping. Way to go Arnold.
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spazz1218
Rookie Author
Tampa
Posts:51
Points:12,450
Joined:Nov 2009
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Message Posted: Nov 18, 2009 5:33:05 PM
I love California but glad im not living there now
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gypsykid
Champion Author
Florida
Posts:2,192
Points:435,515
Joined:Apr 2009
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Message Posted: Nov 18, 2009 5:29:05 PM
sucks to be someone who has to drive a lot
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weenerdog
Champion Author
Detroit
Posts:4,913
Points:937,895
Joined:Jan 2008
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Message Posted: Nov 18, 2009 5:28:48 PM
If they are charging people who drive less a smaller premium, then someone is going to have to pay more to make up the difference.
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goodbuy
Champion Author
Michigan
Posts:3,143
Points:533,560
Joined:May 2005
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Message Posted: Nov 18, 2009 5:27:37 PM
So is it cheaper if I drive in the city versus the country. Should be.
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gypsykid
Champion Author
Florida
Posts:2,192
Points:435,515
Joined:Apr 2009
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Message Posted: Nov 18, 2009 5:27:31 PM
i guess this makes sense...drive more pay more
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hibsaw
Champion Author
Mississippi
Posts:3,103
Points:714,050
Joined:Feb 2008
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Message Posted: Nov 18, 2009 5:23:45 PM
I agree with HUGO40.
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SBlouch
Champion Author
San Antonio
Posts:4,869
Points:1,047,260
Joined:Apr 2007
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Message Posted: Nov 18, 2009 5:20:20 PM
CA usually is one of the first to come up with new energy ideas. But if I am not mistaken, Progressive has a policy which is lower for those who do not drive much. I think payment of insurance should be on the average use rather than the actual. USAA, each time it is ready to be renewed ask if the mileage has increased or decrease and then change the policy to reflect this as they know when when gets older they drive less.
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garman87
Champion Author
Austin
Posts:1,270
Points:1,507,050
Joined:Aug 2005
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Message Posted: Nov 18, 2009 5:16:53 PM
For people that don't drive a lot this sounds really good.
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ItisAJeepThing
Champion Author
Tucson
Posts:11,121
Points:1,170,180
Joined:Oct 2006
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Message Posted: Nov 18, 2009 5:13:50 PM
How does this work? Do I have to call Allstate every trip? What happened to privicy?
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ncwebguy
Rookie Author
Raleigh
Posts:56
Points:51,195
Joined:Apr 2008
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Message Posted: Nov 18, 2009 5:11:36 PM
Some people have gone into "fight change" mode without actually thinking.
There will probably be a fixed cost for insuring the value of the vehicle, and the the variable cost based on how far you drive it.
No one is changing anyone's behavior. This is allowing another choice in determining the cost of insurance. Freedom from having to pay insurance based on "average use" vs. actual use that may be less.
Why do the people who hate this hate freedom? If you want an unregulated Libertarian utopia, feel free to move to Rwanda.
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Hugo40
Champion Author
Kentucky
Posts:2,723
Points:647,010
Joined:Aug 2008
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Message Posted: Nov 18, 2009 5:11:31 PM
Then the next step is to charge vehicle owners taxes on miles driven?
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Sneakers55
Champion Author
Houston
Posts:31,941
Points:1,292,465
Joined:Nov 2005
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Message Posted: Nov 18, 2009 5:11:26 PM
JMJarvis1952 wrote:
>And this is going to make insurance companies any richer?
A lot of the insurance industry is mutual (not for profit) but a smart for-profit company can do well. Look at GEICO and Progressive for two profitable for-profit companies.
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sam7777
Veteran Author
Grand Rapids
Posts:285
Points:42,035
Joined:Jun 2009
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Message Posted: Nov 18, 2009 5:10:06 PM
This will cause the insurance companies to charge people that drive more extra to offset what they get now. They are not going to lose money.
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njerald
Champion Author
Seattle
Posts:2,876
Points:663,455
Joined:Oct 2007
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Message Posted: Nov 18, 2009 5:09:25 PM
Screw CA and the CA Liberal Insurance Commissioner
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