Pay-as-you-drive automotive insurance might finally be taking off after years of sitting on the shelf. Texas passed legislation allowing PAYD insurance in 2001, but no companies have offered it yet.
Ohio legally would be able to implement PAYD, but insurance companies are skeptical of the advantages, mostly because they fear they would lose money. This type of insurance could cause a 10-20 percent decrease in driving mileage.
Factors such as driving history, age and vehicle type would still influence the amount a person would be charged per mile. Eventually, insurance companies would increase the prices to get their money even if citizens drive less.
Government officials would like to see this type of insurance because they think that it might save gas. When gas prices were sky high, driving did not go down as much as anticipated. The fact that the government would back this now just shows how much they want to create a new problem, not pose a solution. It might be feasible to drive less if our society were not set up to rely on driving to work or wherever else we want to go.
This insurance idea seems like an inconvenience waiting to happen. Mileage would have to be checked often by inspection or a special sensor so the customer could be charged. This sensor would mean each customer would have to install a part or pay to have a part installed on his or her car. The Bureau of Motor Vehicles could get involved, but the lines there are already long enough.
Maybe there could be plans. If you purchase the fair and simple plan from your insurance company, any driving you do after 9 p.m. will be free.
This shows a lack of creativity from government officials for solving real problems. Instead of trying to regulate the price of gas ' for which some oil companies earned record profits last year ' companies have placed the strain on policy holders.
Editorials represent the majority opinion of the Post executive editors.
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New car insurance option will shift blame for high gas prices instead of solving problem
