California Auto Insurance Blog

Insurance Commissioner Poizner announced today that State Farm Mutual Automobile Insurance Company is the first insurer to submit an application to offer an innovative program that rewards California drivers who voluntarily drive fewer miles with lower auto insurance rates.

In a move that could get people finding alternative ways to commute, state legislation (.pdf) approved last year enabled auto insurance companies in California to offer discounted rates for drivers who don’t use their vehicles that much. Now, State Farm is the first company trying to take advantage it.

Car insurance by the tankful?

Not quite, but California moved a step closer last month to pay-as-you-drive policies that could allow motorists to buy insurance like they do gasoline – a little at a time.