The recent launch of the new insurance program by milemeters that quotes ‘pay as you drive’ is being generously praised by funds of environment defense. This launch took place in Texas to provide the less mileage drivers, minimum premiums than the regular rates of insurance companies. This has brought a smile to the thousands of Texans who have been looking for some sort of relief in their auto insurance premiums.
On October 15, Milemeter gave away this plan, to implement auto insurance that calculates premiums that are based on the miles driven by the person. The product was launched in Dallas by this licensed auto insurance company to make people pay only for what they drive and not more. This product was launched to make sure that Texans would only pay for the distance they travel, which made it sound fair to those people who didn’t drive around much.
Environmental defense fund said that this product that was launched not only made the Texans spend less and save a little amount of money, but also give the environment protection.
This product is targeted at customers who travel up to 10,000 miles a year. By using this option, about 10% to 40% can be saved off other policies accumulating a large amount as their savings from this benefit.
Mothers who stay at home, carpoolers, professionals of the urban community, transit users, workers from home, etc benefit completely with this policy.
EDF also mentions that Insurance policies based on partial mileage have also been launched by insurance companies in the past 5 months. This policy is offered in 7 states where a discount of 40 to 60% is given based on the mileage. This policy is also almost as progressive as the first policy in the society.
Onstar equipped vehicles in several states are also being offered discounts based on mileage by Gmac insurances.
If this pay as you drive option was given to all vehicle users, a report from Brookings institution showed that there was an 8% fall in the driving which would bring down the number of damages brought about due to driving, and about $270 could be saved per car.
The group also said that this was a take for green turn as it also helped protecting the environment but reduced consumptions of oil and lesser emissions of carbon dioxide produced.