According to LAist, State Farm Insurance wants to utilize a law approved last year that would let auto insurance providers give discounted rates for motorists that only drive their car every once in a while.
Auto accident insurance might be cheaper if you only use your vehicle here and there.
“It’s just common sense that Californians who choose to drive less should have an option to pay less for auto insurance,” said Insurance Commissioner and California gubernatorial candidate Steve Poizner. “The voluntary pay-as-you-drive initiative is a cutting-edge program that will allow insurers to offer these plans without compromising consumer privacy. I hope other insurers follow suit and join State Farm in offering this product.”
In the past, our firm has weighed the cost-benefits of paying higher auto accident insurance rates every month as opposed to waiting for an accident to happen and being swallowed in debt by medical bills and property damage costs. Will this be an example of profits-over-people where California drivers are uninsured when they need it during an auto accident?
As Poizner has explains, auto accident insurance rates for State Farm customers can be reduced based on actual mileage as opposed to estimated mileage, measured by a “technological device” or having an agent review mechanic facility data. This plan is still awaiting approval, but State Farm customers would see a drop in their monthly rates if they are found to drive 500 miles less annually than originally thought. Our firm’s San Diego auto accident lawyers want to join LAist in asking the following questions:
- What happens when you drive more than anticipated, say a road trip or an emergency that is out of town?
- How much more will you pay if you are in an auto accident and are found to have been driving more than originally calculated (over the 500 miles)?
- Is this under-insuring California motorists and will it cost them more should an una auto accident happen?
Beware of getting sold insurance that will not help you in the long run. For all current and future State Farm customers, it is best that you research this new plan and, if it is approved, find out if it is the right kind of coverage for you. The one thing you don’t want on the road is to be without auto accident insurance that has your best interest in mind.
Call us anytime night or day at 1-858-551-2090 for a FREE Consultation with an auto accident lawyer. You may also click here to submit your case for a FREE Online Review.
SENIOR PERSONAL INJURY ATTORNEY & FIRM FOUNDER
Michael Pines is a former insurance company attorney who graduated from the University of California Hastings College of the Law in 1987. While he was an insurance attorney, he learned from behind the scenes how insurance companies work and how they decide how much to pay injured people. Now that he works against insurance companies, Michael’s inside knowledge has resulted in significant benefits to his clients injured in car accidents. Learn more about Michael Pines