Californians Could Now Save Money for Driving Less

Date: April 19, 2022       Category: Insurance/Car & Auto        Author: Kip Kelly

The residents of State of California will now have the alternative to save the money on car insurance just by driving less, as declared by the state insurance commissioner Steve Poizner.

The state insurance commissioner Mr. Poizner has approved the scheme for California's first pay-as-you drive insurance program, which permits and authorizes the Automobile Club of Southern California as State Farm to offer low and cost effective insurance rates to clients who drive below a certain mileage specified under the scheme.

State farm customers plan to save an estimated $31 million by being part of what has been termed as Drive safe & Save program, which commences on 28th of February, and whereby the customers have the option to buy the lower mileage plan. After which they will be entitled to get lower insurance rates, for which they will have to reduce their driving habits by cutting down their mileage by about 500 miles every year.

Californians who wish to avail the benefits under this scheme, will be expected to either self report their odometer readings at the commencement and at the expiry of the each policy, or have the option to allow state farm to have access to their mileage data automatically from the vehicles with the use of an active On-Star system.

The auto club plans to offer its lower mileage program with effect from 1st of February and expects that the participating policy holders would save an average of $68 per vehicle. The newly derived figures from the insurance information institute indicate that the cost of Motorcycle Insurance in the state of California works out to be about $800 per year.