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Pay as drive insurance...

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aerog

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Picked this up on the newswire. Maybe those in the UK have heard of it already. I know a few states in the US want to tax this way. Interesting read, anyway: click here
 
Trust me - insurance companies wouldn't be investing in the GPS' & other ancilliary support systems if they thought they would lose money....there's more of a profit in it for them using this system.
 
There is proabably stiff penalties for 'unsafe driving' which the GPS can and will report. "You averaged four miles an hour over the posted speed limit on three sections of your last journey. The insurance cost for those sections are $0.28/mile as opposed to $0.03/mile where you were not in violation. Have a nice day." Similar to Hertz trying to write customers speeding tickets and increasing the insurance costs on customers whose GPS systems indicated they were speeding. Remember that?
 
kinda makes ya wonder ....about insurance companies and their profits. It makes sense that if you drive more then you are more likely to have an accident. But what is the Average? What do the insurance companies use to figure that? my cars are parked probaly 80-90 % of the time....i must be paying for those fellas that live in their vehicles. Sounds to me like the "Big Brother Is watching You"


mark
 
My insurance company asks me annually how many miles I plan on putting on each of the cxars I've insured with them....think they then charge accordingly.
 
Yea, they do Tony, 6K is the bottom for us and goes up in 2K steps.
 
3k on some of mine is the bottom limit
 
That may be after you have a car for each driver, maybe. After all we have the same company, me since 1961 never a prob I may add.
 
I derive a significant protion of my income directly from insurance companies, both hired by them to represent their insured in lawsuits and representing the insurance companies directly in suits brought against them....and I am probably the most suspicious person about insurance companies you will ever meet.

That being said, I can see an insurance company making money in a year with alot of payouts- easily. The profit does not come directly from premiums exceeding payouts. The real money is made investing the premium money until some must be used to pay out.

It is not uncommon for an insurance company to pay out in claims and defense costs, 100% of what they take in as premiums, if not more.

However, what they have done is use those billions upon billions of premium dollars to invest and make a profit that way. Of course, every dollar they can save (by, for instance, telling their attorneys to do whatever it takes to defend an insured, but then paying the attorney a flat rate regardless of the complexity of the case...so I've heard) is money that goes into profit, but claims vs. premiums is not where its at.
 
[ QUOTE ]
I know a few states in the US want to tax this way.

[/ QUOTE ]

This sort of use-based tax is seemingly becoming more and more attractive to UK authorities, paricularly those that want to impose additional taxes to control congestion....
 
Maybe some lister can correct me, but I think Oregon is proposing a similar scheme where the driver would be exempt from road use taxes (gas tax) but be billed by the state on miles driven.
 
[ QUOTE ]
Maybe some lister can correct me, but I think Oregon is proposing a similar scheme where the driver would be exempt from road use taxes (gas tax) but be billed by the state on miles driven.

[/ QUOTE ]

You're correct, but the last time I read up on it there were 13 states working along with Oregon to investigate using such a system.

Personally I think they (Oregon) should work toward letting a car owner actually pump their own fuel before worrying about wiring up GPS in every car. /ubbthreads/images/graemlins/rolleyes.gif
 
Hey, in Oregon you can't pump your own gas either - what do you expect? hehehehehe
 
Do you really mean you can't pump your own gas. Really?
 
[ QUOTE ]
Do you really mean you can't pump your own gas. Really?

[/ QUOTE ]

Literally. Same as New Jersey.

I remember talking to a friend out there about it (yeah, I was ribbing him about it). He said, "who wants to pump their own gas, and smell like gasoline all the time? That's terrible, why would you do that!?". Another guy told me they have to be "properly trained" to pump gasoline.

Give me a break. /ubbthreads/images/graemlins/smile.gif
 
No, its Oregon's way of taking care of high school dropuots - gives them a job they can handle...

A few years ago, i was out there & needed to fill up my '79 MGB....pulled into gas station & went to pump my gas...young dork ran out & told me I couldn't do that...."Okay, you pump it. However, if you dribble gas on the black rubber bumper on this exotic, classic, European sportscar, it'll cost you $500 plus my living expenses while they ship one here & install it. (as I handed him one of my 'theAutoist' business cards) Now, if you feel lucky, go ahead, pump away; if not, stand aside while I pump my own gas." Guess who pumped the gas? hehehehe
 
"properly trained" to pump gasoline. Now that's funny.
 
Big trucks already pay licences by the mile. We had to fill out tons of forms and write checks to all the states. My daughter lives in Oregon and loves having someone pump here gas.
 
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