Posted On: March 8, 2006, 4:54 pm CST

Posted By: Ray

I have been trying for well over 20 years (through numerous presentations to the NJ Dept of Insurance, insurnce companies, etc.) to change the methodology of auto insurance rating from territory/age, etc. to a mileage based system. Now, it seems that Progressive introuded this concept this past week in Iowa on a trial basis.

Not only would this be a much more practical approach, but with technology we now have, we can track (in real time through a web browser - with statistical storage) not only mileage but also speed of the vehicle, etc.

My plan calls for a combination of rating factors including home zip code and actual miles driven. My model provides for 12,000 miles per year with credits applied for less then 12K and surcharges for more then 12K. The beauty of this system is that it would encourage mass transit usage, reduce overcrowding on roadways and reduce auto emissions.

By the way, my post was the first on this topic.