Pay-As-You-Drive (PAYD) Will Not be Expanded Nationwide Yet

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While many states have adopted the new pay-as-you-drive insurance option to its drivers as an affordable, energy-saving coverage option, key insurance regulators are shying away from making it a standardized option across the nation. This decision falls in contradiction to other environment movements like the Energy Star appliance standards and the green building code called Leadership in Energy and Environment Design (LEED).

About Pay-As-You-Drive

The pay-as-you-drive program has become a popular option in various states around the country. Several insurance companies like Progressive are offering their versions of this program, which allows drivers to pay for their insurance based on the number of miles they drive, rather than other deciding factors like driving record or city of residence.

Expanding the Program Nationwide

So far, 19 states have agreed to participate in this program with the latest being California. However, the popularity among numerous states has not convinced the National Association of Insurance Commissioners that this option should become an industry standard. One reason that it hasn’t been pushed nationwide is because the association believes that other environment options should be left open for consideration as well.

Also, some drivers are deterred from the program because of the “Big Brother” element involved of tracking miles driving through digital devices.

All in all, the program is still in its beginning stages and isn’t developed enough to push to the masses. However, if you live in a state that offers this unique coverage option, you could save a lot of money on your insurance. To learn about the basics of PAYD insurance, the Environmental Defense Fund (EDF) offers interesting information and tips.

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