Thursday, August 28. 2008

Poizner Pushes "Pay as You Go" Insurance for California

Steve Poizner is currently the insurance commissioner for California. Before that we knew him as founder Strategic Mapping and SnapTrak. Word is he may run for governor in 2010. For now, though, he's pushing for an option for insurance that would be tied to actual mileage, one that would ideally drop miles travelled and thus air pollution. Thirty other states already have this option. Oh, and no GPS is allowed; it would invade privacy. Odometer or other device readings would be used to confirm mileage.

I'm not sure I follow the logic:

The Environmental Defense Fund estimates that if 30 percent of Golden State drivers participate in this new form of voluntary coverage, the state could avoid 55 million tons of carbon dioxide between 2009 and 2020 -- the equivalent of taking 10 million cars off the road. This would save an estimated 5.5 billion gallons of gas and $40 billion dollars in car-related expenses.

Is the logic, "If I pay more to drive more, then I'll drive less?" That's working "somewhat" with the recent high gas prices. How can they know it'll take 10 million cars off the road? Here in Massachusetts I get a break because I drive fewer than 5000 miles/year. How much lower would my rate be on such a plan (we don't have one here). Would I drive even less? I doubt it, but I'm the first to say that lifestyle issues in my compact city are very different than those in much of California.

- San Francisco Business Times