Is auto insurance "by the mile" a greener way to drive?
According to The Sacramento Bee, California Insurance Commissioner Steve Poizner recently released regulations that would allow insurance companies to implement "pay-as-you-drive" policies. Under such a program, drivers would purchase blocks of mileage, and once that mileage runs out they could purchase more -- which means the more a person drives, the more he or she pays. Proponents of such a system hope charging by the mile will encourage people to drive less and use public transportation more, thus saving the environment and easing traffic congestion in the long run. But Steve Stanek, a research fellow at The Heartland Institute in Chicago, questions that argument. Stanek, a former auto insurance employee, contends that miles driven and the area in which one drives the most is already a factor in auto insurance policies -- and that those who drive the most in higher risk areas, such as large cities, are typically charged more. "If insurance is based primarily or solely on how many miles a person drives," he explains, "[someone] who lives in an area with very light traffic volume and with very few traffic crashes will end up subsidizing people who live in heavily congested areas where there are many traffic crashes and where the risks are much greater." Stanek notes that this type of policy would be discriminatory toward those who live in rural areas and must drive long distances for employment. As for using auto insurance to promote so-called "green living," Stanek considers that an abuse of power. "Government should not be using insurance as a tool to manipulate people's behavior," he argues. "Insurance should be what insurance is meant for -- and that is to protect people from [injuries] and from [damage] to their cars." Pay-as-you-drive policies are currently available in various forms in numerous states, according to the Bee.
If you believe OneNewsNow.com is an important source for Christian news, please consider a small tax-deductible gift for this service.
