Todd Litman of Victoria Transport Policy Institute has just posted a two-pager on pay-as-you-drive car insurance (PAYD) that does a nice job of briefly summarizing its benefits, such as making insurance more affordable for low-income residents and giving consumers more control over their driving expenses.
It also responds to some of the myths about PAYD, such as that suburban and rural residents would pay more if insurance was priced by the mile. (Not true: Because of how the pricing works, suburban and rural residents would only pay more if they drive more than average among suburban and rural motorists.)
Distance-based vehicle insurance has slowly been making progress in the Northwest; the most recent example is the Vancouver, BC City Council’s resolution asking the Insurance Corporation of British Columbia (ICBC) to offer optional PAYD. The resolution has sparked debate in BC about pros and cons of PAYD; Litman’s summary should help clarify those.
P.S. – See a summary of recent PAYD developments here.