Posted On: July 4, 2008, 5:20 pm CDT

Posted By: Amanita

The problem with California's "PAYD" auto insurance proposal is that it merely adds an expensive electronic monitoring gimmick to the old black box classification system that tries to measure risk by classification - a statistical impossibility. Real per-odometer-mile auto insurance changes the exposure unit to measure risk cost from the car-year to the car-mile. Customers buy class-rated miles of driving coverages in advance and top up as needed to stay insured, much as they buy and use gallons of gasoline. Beyond a likely odometer integrity check at the annual policy renewal, no telematic or other reporting system is involved. For FAQ, technical publications, etc. see www.centspermilenow.org. See also www.MileMeter.com.