Washington Pay As You Drive Insurance Proposal Passes First Hurdle

March 13, 2009

Pay-as-you-drive legislation in Washington that proposes drivers should be able to pay insurance premiums based in part on the miles driven per year, was passed bythe Washington Senate by a 32-15 vote.

Senate Bill 5708, sponsored by Sen. Tracey Eide, D-Federal Way, provides that any insurance policy that grants the coverage required for a motor vehicle liability policy may also grant lawful coverage based on mileage-based factors. A mileage- based motor vehicle liability policy must be approved by the insurance commissioner.

According to the bill text, the goal of the bill is to create an incentive for drivers to drive fewer miles, and subsequently reduce greenhouse gas emissions.

The bill now moves to the House.

Source: Washington Legislature

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