California Insurance Commissioner Dave Jones approved a personal auto filing by Esurance that will allow its policyholders to voluntarily participate in a pay-drive verified mileage auto program.
Under the San Francisco-based company’s “Drive Less, Save More” program, customers provide odometer readings each term for possible additional savings on their car insurance.
“Esurance is the latest California company to offer consumers a simple and innovative insurance option that allows motorists who drive fewer miles to save money by only being charged for the insurance they need and use,” Jones said in a statement.
Beginning Aug. 11 Esurance initiated its verified mileage program by applying verified annual mileage factors when calculating policy premiums for participating insureds. Customers who agree to participate can see savings of up to 15 percent on their premium depending on how much they reduce the number of miles they drive, according to Esurance.
Customers who reduce their driving by as little as 500-1000 miles can see reduced rates on their car insurance premiums, and they need only to report their vehicle odometer readings upon policy purchase, and with each renewal, according to the company.
The “Pay-Drive” verified mileage option provides insurers with an additional option for determining the number of miles driven that is to be applied in the rating calculation. While companies continue to offer traditional insurance based on estimated mileage, they now can also offer a verified mileage program instead, or in addition to current options. Other companies that offer pay-drive programs include: The Automobile Club of Southern California, State Farm, CSE Safeguard Insurance Company and the Sequoia Insurance Company of Marin.
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