Over at The Tyee this morning, you’ll find an editorial piece from me and Alan arguing that British Columbia should finally get around to adopting Pay-As-You-Drive car insurance. Maybe it sounds like a small thing, but it’s a policy with a lot of leverage.
Car insurance in British Columbia is like an all-you-can eat buffet: once you’ve made the purchase, you may as well gorge. Mileage is correlated with risk; the more you drive, the more likely you’ll crash. But unlike a driver’s age and safety record, insurers have historically underweighted mileage in their rating formulas…
Essentially, pay-as-you-drive makes buying car insurance like buying gasoline: drive less, buy less.