Friday, March 13, 2009

Pay As You Drive

Remember my post a few weeks ago on car insurance that costs less if you drive less? Turns out several companies are offering it around the nation. The Environmental Defense Fund offers a good overview here. The Brookings Institution reported that if all American drivers had pay-as-you-drive insurance, we'd drive 8 percent less, total US CO2 emissions would go down by 2% and oil consumption by 4%, and two-thirds of households would pay an average of $270 less per car for auto insurance. Here are the programs I found:
  • Owners of GM cars with OnStar can get discounts for driving less through insurer GMAC in 47 out of 50 states. Click here for info.
  • Progressive offers pay-as-you-drive discounts in Alabama, Kentucky, Louisiana, Maryland, Michigan, Minnesota, New Jersey and Oregon.
  • Texas is the first state to offer insurance that's charged per mile you drive, allowing you to get the full benefit of driving less, through MileMeter. Go, neighbor!
  • In Massachusetts, the Environmental Insurance Agency offers a policy through Plymouth Rock that rewards you for driving less. EIA is owned by the Conservation Law Foundation, which has spent decades protecting the environment in New England.
  • The Federal Highway Administrations Value Pricing Program is launching a PAYD pilot program in Georgia.
Post your experiences with any PAYD program, or any other global warming solutions!

Stay cool,


  1. Since I live in Georgia, I checked out the FHA program. It appears to be in the research phase, but let me know if you have different information.