Pay-as-You-Go car insurance is the newest trend to hit the country in a long time when it comes to vehicle coverage. Regular auto insurance means a monthly premium and a yearly policy normally but this will eliminate that for many drivers. This becomes a low cost alternative for those drivers who only operate their vehicles for short distances or just locally.

California legislature has approved a new pay-as-you-go car insurance plan that’s partly based on how many miles drivers tell their insurance company they anticipate driving each year. The program is not the first in the country, but is the first time the entire state gets a green light to proceed. However, the catch is that drivers have the burden of proving the estimated miles driven in order to get a discount.

This will allow insurance companies to concentrate more on providing coverage for actual vehicle use rather than just owning one. This will become a much cheaper alternative for drivers who tend to stay more local than long distance. This plan will be called the “Verified Miles Plan” and the actual mileage will need to be monitored in some way.

If you aren’t behind the wheel as often then accident rates will reduce, the environment will be cleaner, and insurance rates remain low. This prepaid car insurance plan will allow drivers to purchase miles in bulk instead for a specified amount of time. Someone can purchase 20,000 miles and it may last them anywhere from 6 months to a 2 years.

The Environment Defense Fund (EDF), which tackles the most serious environmental problems, predicts if one third of Californians participate in the pay-as-you-go-plan, over 50 million tons of greenhouse gas emissions can be avoided through 2020. This plan is optional and other more traditional car insurance options will still remain available. However, there are some controversies that come along with the new plan.

One of the main concerns regarding this is that if GPS is chosen as the preferred method of reporting mileage, do people really want the insurance companies knowing their every move? These devices will not only record the mileage used but locations and speeds as well. This information could possibly be used against a driver at a later date.

Do you really want your insurance company or agent knowing your every move? The insurance companies have to submit all the policy details to the state for the final approval and this type of policy may be offered as soon as January 2009. The program has been available in other states since the beginning of 2009. Prior to the California, the plan took shape in Cleveland, OH and Winston Salem, NC.

Other than the possibility of privacy invasion due to the information gathered from the GPS unit, many drivers will find this to be a great alternative to the higher cost of standard car insurance. If the vehicle use can be kept to under the policy restrictions, then the drivers will save much more than just money. This allows them to assist with keeping the environment healthy as well.

Get cheap car insurance quotes today and find information for car insurance at: www.InsuranceQuotes.info

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