Fair car insurance

I believe it is time for us to see a new way of paying for car insurance, one that is fair for everyone and even cuts down on greenhouse gases. Insurance premiums should be based on mileage driven instead of a simple base rate for all. It does not make sense that someone who drives 5000 kms/yr should pay the same as someone who drives 80,000 kms/yr when it is clear the frequent driver is not only at much higher risk of crashing, but also produces much more congestion putting other drivers at a higher risk as well. The added benefit - drivers will be more aware of their driving habits and will begin to calculate an accurate cost of driving versus transit/walking etc. Many people do not take transit simply because they are already paying for car insurance so it doesn't make sense to pay even more for a bus pass and leave their car at home. If the cost savings of mileage-based insurance more than offsets the cost of a bus pass, people will obviously prefer to take transit where possible. Economics always wins. The other added benefit - there is currently a push to license/restrict/regulate ride-hailing, or in other words, make it more expensive and inconvenient for the new economy to prosper. Targeting a single group to inhibit progress is not only unfair to the industry but also to society at large. Again, economics wins - if the money I save taking Uber over taxi allows me to buy a pair of pants, I employ two people for the price of one, and our economy is more diverse because of it. Restricting a more efficient way of doing business hurts us all, but by introducing mileage-based insurance, Uber drivers will be affected and take caution under their own willingness, in much the same way as if gas prices doubled. Mileage-based insurance will clearly benefit seniors who need a car but rarely drive, as well as students - two groups of people who need every opportunity to cut costs.


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  • Bill Masse
    commented 2016-12-14 19:43:02 -0800
    Kevin, as Research and Policy Chair and Vice Chair of the Platform Policy Advisory Committee I want to thank you for your suggestion. We have been discussing various ways of transitioning the transportation sector off fossil fuels and you idea was added to the discussion.
    Bill Masse
  • Kevin Babcock
    published this page in Make a suggestion 2016-10-20 12:13:58 -0700
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