Pay as you go insurance bill drops in the Senate

Senator Eide has dropped a bill to allow pay-as you go insurance in Washington State.

The Seattle Times covers the story here.

As the Times points out, there are some concerns around privacy for this type of insurance, because companies would have to use electronic devices to track mileage. That said, it is a great idea for reducing vehicles miles traveled on the personal and regional level.

Lets use a low mileage user like me as an example of why this is a good idea. On average I drive my car about 20 miles a week for things like quick trips to the grocery store and an occasional drive for hiking or skiing. 95% of my commuting is done with transit and walking. I pay the same amount for car insurance as somebody who has the same driver profile, but commutes to work every day 40 miles each way in their car. The logic behind this is hard to follow and our current insurance system is a disincentive to drive less. It is as though I am forced to buy an all you can eat buffet, when really all I need is a ala cart menu.

Senate Bill 5708 was dropped on January 29th. We'll continue to track and support this legislation in Olympia and keep you posted.