Sequioa to Offer Pay-As-You-Drive Insurance in California

California Insurance Commissioner Dave Jones has approved a filing by Sequoia Insurance Co. to offer Pay-as-You-Drive auto insurance coverage. The Monterey, Calif.-based firm joins Automobile Club of Southern California and State Farm Mutual Automobile Insurance in offering this program to customers.

“In the spirit of Earth Day I encourage motorists to take advantage of this environmentally and consumer-friendly protection,” Commissioner Jones said. “The voluntary initiative is an innovative program that allows insurers to offer plans based on more accurate mileage. People who choose to drive less will pay less for auto insurance and at the same time reduce greenhouse gases.”

Regulations for the Pay-As-You Drive program took effect in 2009. Typically, rates are based on mileage estimates. This program allows motorists who drive fewer miles to save money by only being charged for the insurance they need and use. It’s a voluntary option for California drivers.

Commissioner Jones also reminded homeowners that some insurance companies have begun offering “green” homeowners policies, which enable California homeowners with conventional homes to rebuild to the latest environmental standards after a loss. These policies may provide coverage for costs typically not covered in traditional homeowners policies, like green recertification fees, Energy Star-rated appliances, lighting, electronic equipment, roofing, and other additional expenses environmentally-conscious homeowners may incur when rebuilding.

“These innovative and environmentally-friendly products are good for the environment, and may help lower your costs on utility bills,” said Commissioner Jones. He urged all consumers to check with their carrier to see what green options are offered.

Topics California Homeowners