Whole vs Term

It all stared in Texas but Pay-By-The-Mile option will be available soon in California. In fact, some California insurance companies are already beginning to offer this alternative to their clients. This plan is certainly different from the other policies created before. Instead of offering discounts based upon a set of monthly premium, this plan will mark down rates based on the amount of miles driven each month.

As it encourages relief from traffic congestion, air pollution and helps reduce the number of traffic collisions by encouraging drivers to drive less in order to save more, the plan has received many praises from critics. Moreover, California state government has approved the implementation of pay-by-the mile auto insurance.

Big companies such as Allstate and Progressive insurance companies have already announced that they are actually considering implementing a pay-by-the-mile policy of their own soon but no official plans released yet. So if you’re currently insured in one of these companies, you can expect for another alternative to be available for you in the near future.