What if instead of paying a lump sum every month or year for your car insurance, you could pay by how much you drive? And if you drive less, you pay less.
Massachusetts is planning to try out the concept. The goal isn't just to reduce cost, but to reduce carbon emissions.
Many environmentalists say the pay-as-you-drive insurance approach is great for the environment. An MIT study commissioned by the Conservation Law Foundation found that it would reduce mileage, reduce accidents and cut fuel consumption.
- David Cash, assistant secretary for policy, Massachusetts Energy and Environmental Affairs department
- Joe Ferreira, professor of urban planning and operations research, MIT
- Paula Gold, chief regulatory officer, Plymouth Rock Insurance
This segment aired on January 6, 2011.