Pay-As-You-Go Insurance Discounts: Get the Facts
- If all U.S. motorists had Pay-As-You-Go insurance, driving would decline by eight percent nationwide, saving about $50 to $60 billion a year in driving accidents and other car-related damage.
- If the state of California implemented a Pay-As-You-Go insurance program, it would result in an eight-percent decrease in driving from light-duty vehicles.
- California’s state government would save $54 million annually based on 2006 data and $60 million based on 2020 projections if they implemented Pay-As-You-Go insurance programs.
- Almost two out of three U.S. households would receive an average insurance discount of $270 per car if all motorists had Pay-As-You-Go insurance.
- Pay-As-You-Go insurance programs would reduce the number of accidents, the amount of congestion, and pollution (including CO2 emissions), and would help increase oil security.
- It would take an 81-cent-per-gallon increase in the gas tax to achieve the six and a half-percent reduction in miles driven that Pay-As-You-Go insurance programs would achieve.
- Initial research estimates that Pay-As-You-Go insurance could reduce driving by five to 15 percent. A 10 percent reduction in driving is estimated to result in a 17-percent reduction in crashes.
Environmental Defense Fund:
- The total U.S. CO2 emissions would decrease by two percent and oil consumption by four-percent if all motorists had Pay-As-You-Go insurance.
- Nearly two-thirds of Californian households would receive an insurance discount under Pay-As-You-Go insurance with an average savings of $270 per vehicle per year.
It would take an 81-cent-per-gallon increase in the gas tax to achieve the 6.5 percent reduction in miles driven that pay-as-you-drive insurance programs would achieve. -Brookings Institute Learn More
If the state of California implemented a pay-as-you-drive insurance program, it would result in an eight-percent decrease in driving from light-duty vehicles. -Brookings Institute Learn More
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