Comments on: Pay-as-you-Drive Creeps Ahead in California http://www.howwedrive.com/2009/11/04/pay-as-you-drive-creeps-ahead-in-california/ Just another WordPress weblog Wed, 23 May 2012 02:14:44 +0000 http://wordpress.org/?v=2.5.1 By: nick http://www.howwedrive.com/2009/11/04/pay-as-you-drive-creeps-ahead-in-california/#comment-9666 nick Thu, 05 Nov 2009 02:41:12 +0000 http://www.howwedrive.com/?p=1281#comment-9666 There really seems to be a paradigm shift underway in the way that driving is viewed. For three generations we have put into place policies that not only subsidize those who drive a lot at the expense of those who drive a little, but also actively conceal from drivers the true cost of driving. The current reality is that the incremental cost of driving a car compared to the fixed costs are so low that once you buy a car it makes sense (financially) to drive that car as much as possible. While that makes sense on an individual level, on a societal level the costs are tremendous. Only now are governments starting to react. There really seems to be a paradigm shift underway in the way that driving is viewed. For three generations we have put into place policies that not only subsidize those who drive a lot at the expense of those who drive a little, but also actively conceal from drivers the true cost of driving. The current reality is that the incremental cost of driving a car compared to the fixed costs are so low that once you buy a car it makes sense (financially) to drive that car as much as possible. While that makes sense on an individual level, on a societal level the costs are tremendous. Only now are governments starting to react.

]]> By: Paul Johnson http://www.howwedrive.com/2009/11/04/pay-as-you-drive-creeps-ahead-in-california/#comment-9660 Paul Johnson Wed, 04 Nov 2009 21:44:36 +0000 http://www.howwedrive.com/?p=1281#comment-9660 A good reason why California shouldn't be allowed to influence the rest of the country. A good reason why California shouldn’t be allowed to influence the rest of the country.

]]> By: Scott http://www.howwedrive.com/2009/11/04/pay-as-you-drive-creeps-ahead-in-california/#comment-9659 Scott Wed, 04 Nov 2009 21:41:41 +0000 http://www.howwedrive.com/?p=1281#comment-9659 Did anyone else think this had to do with an election or something and read the headline as "[The] Pay-as-you-Drive Creeps [Are] Ahead in California”? Did anyone else think this had to do with an election or something and read the headline as “[The] Pay-as-you-Drive Creeps [Are] Ahead in California”?

]]> By: Vinny http://www.howwedrive.com/2009/11/04/pay-as-you-drive-creeps-ahead-in-california/#comment-9657 Vinny Wed, 04 Nov 2009 18:45:19 +0000 http://www.howwedrive.com/?p=1281#comment-9657 This ought to make for some fun underwriting calculations. Fewer miles driven will reduce overall collision exposure. However, drivers who spend less time behind the wheel have a higher crash rate per mile driven. I am sure when this is all balanced out there will be fewer collisions and the roads will be slightly safer. I would love to see a summary at the bottom of my insurance bill stating “You drove 317 miles last month. That saves you $22.50!” Showing how miles relate to the true costs of car ownership will help some people manage their money smarter. If Michael and Linda in the article don’t want to be billed by the mile then let them pay the premium for the unlimited plan. This ought to make for some fun underwriting calculations. Fewer miles driven will reduce overall collision exposure. However, drivers who spend less time behind the wheel have a higher crash rate per mile driven. I am sure when this is all balanced out there will be fewer collisions and the roads will be slightly safer.

I would love to see a summary at the bottom of my insurance bill stating “You drove 317 miles last month. That saves you $22.50!” Showing how miles relate to the true costs of car ownership will help some people manage their money smarter. If Michael and Linda in the article don’t want to be billed by the mile then let them pay the premium for the unlimited plan.

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