“Pay as you drive” insurance may become commonplace in Detroit someday. But will Detroit be prepared?
PAYD means that the more you drive the more you pay for insurance and conversely the less you drive the more you save on insurance. Like having to pay for gas and, to some extent, more maintenance on a car this rewards those who drive less, those who live closer to their jobs. Some cities already implement this by including insurance into the price of a gallon of gas. Now GMAC and Progressive Insurance are offering these insurance plans to even more people by placing hardware in each car that will report how many miles you drive. If many people who drive less than average switch to these plans and save money than those left on the normal plans will find that they have to pay more and will have to consider driving less in order to reduce their insurance rates. Are you prepared for that?
Hells yes! Sign me up for that!!! For people who have 45-minute+ commutes to work, of course they’re going to say “that’s totally unfair, WAAAAAAHHHHHHHHH,” but what I’M saying is why should those of us who spend 1/3-1/4 of the amount of time in our cars pay exactly the same amount of money??? Oh, I’m ALL over that. And if people are relaly going to cry over it, do what I did–MOVE CLOSER TO WORK.
Exactly! People do have a choice.