Are you the type of driver who leaves their car in the garage most of the time, only making the infrequent trip once in a while? Possibly you live walking distance from your work and thus don’t need to drive very often at all. If you are a Californian and this describes you, then you should be aware of a valuable new car insurance discount available to you.
Last year California’s Department of Insurance approved an insurance company’s right to insure customers only for the number of miles they drive. The goal behind the new regulation is to save drivers money while at the same time decrease traffic on California roads, which in turn eases traffic congestion and reduces each driver’s environmental footprint.
Insurance providers are embracing the change because it is a way for them to collect more detailed information about their customer’s driving habits and charge them appropriately. Insurers have been wanting to have deeper insight into individual customer’s driving habits and this kind of mileage discount gives drivers a good reason to share the information they desire.
Insurance provider, State Farm, has predicted that one quarter of their customers will opt for the new mileage-based plans, which they estimate will add up to $31 million in savings for their existing customers.
The Auto Club of Southern California welcomed the new discount, with 80% of the club’s policyholders already taking advantage of the new plan. The club is anticipating that eventually 90% of their members will be taking advantage of this discount.
Reported mileage is verified by either a device installed directly in the owner’s car, or by the owner reporting the mileage driven themselves, which is verified by information from car dealerships, auto shop service records and regular smog checks.
So far California is the only state where drivers can participate by reporting in the amount of miles they’ve driven. Though in Illinois an even more detailed analysis is being performed on driver’s driving habits. Under State Farm’s Safe Drivers Program in Illinois, Illinois residents are being given the option to install devices in their cars that actually measure G-force. Talk about high tech! This program then rewards drivers for safe driving habits by measuring acceleration, speed, braking and the G-force during turns. Another insurer offering these kind of incentive programs is Allstate Insurance. They are currently offering programs in Illinois, Arizona and Ohio as well.
Surely it’s only a matter of time before these types of incentive programs are offered in California as well, so keep your eye out for them. These are exactly the kind of discounts that enables you as the consumer to find the cheapest car insurance in California.
Our final advice: Once you’ve compared your insurance quotes and have found the company offering the lowest rate, be sure to talk directly with one of their agents and ask them to inform you of any and all discounts or incentive programs you might be able to take advantage of before you settle on your final insurance policy. Asking these important questions is the key to ensuring you are getting the cheapest auto insurance California has to offer, saving you valuable money month after month for many years to come.