California motorists always have been able to ask for a discount on future premiums for driving less than their estimated mileage. They still can, regardless of whether their insurer has rolled out a pay-as-you drive offering.
The pay-as-you-drive movement can be traced to California's Proposition 103, the landmark auto insurance reform initiative passed by voters in 1988. It required insurers to base premiums primarily on a driver's safety record, number of miles driven annually and years of driving experience.
New regulations approved by former California Insurance Commissioner Steve Poizner allow for actual mileage to be a voluntary alternative to estimated mileage. The regulations also make it possible for insurers to automatically collect mileage verification from an automatic device inside a vehicle.
Any savings from actual miles driven will show up in future premiums.
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