A Dallas-based auto insurance company announced it has become the first in the country specifically licensed to sell per-mile auto insurance.
The company offered up its experience to other insurance industry executives recently at a trade conference -- a meeting of auto insurance regulators, environmentalists, consumer advocates and auto insurance executives.
Industry experts outlined the benefits of what the company termed pay-as-you-drive (PAYD) insurance.
At the conference, sponsored by Ceres, an organization dedicated to reducing the effects of global warming, experts said that PAYD insurance is one way to provide consumers with an economic, green incentive to limit miles driven and receive a reduced rate in current policies while simultaneously helping the environment.
With appropriate incentives, Ceres argued, governments and corporations can encourage more sustainable, responsible consumption.
The insurance company said transparent pricing creates the most effective auto insurance incentives to reduce vehicle miles traveled (VMT).
Consumers can drastically reduce their insurance premiums simply by driving fewer miles. For those driving up to 10,000 miles per year, expected savings can average 25-75 percent on most policies, the company said.
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