Mich. Regulators Issue Mileage-Based Auto Insurance Advisory
Mileage-based auto insurance programs are becoming increasingly available throughout the United States.
(EMAILWIRE.COM, March 28, 2011 ) Detroit, Michagan -- Michigan’s commissioner of the Office of Financial and Insurance Regulation (OFIR), Ken Ross, issued a bulletin last week advising the state’s car insurers that current market regulations allow them to implement pay-as-you-drive auto insurance programs.
A representative from the OFIR says there weren’t any specific catalysts for the bulletin but that it is “simply a reminder” to coverage providers.
Mileage-based, or pay-as-you-drive (PAYD), programs have been getting increasing levels of attention in recent months. Touted as being a type of “green” insurance, officials in a number of states around the country are advocating for their implementation. Many are calling the concept a win-win with the potential to provide residents relief in the form of lessened traffic, reduced pollution levels and lower premium rates.
The first PAYD CA auto insurance policies went into effect last month, and states like New York and Massachusetts are calling for studies to see if such options would be viable in their states.
According to the Michigan bulletin, insures in the state “may write automobile insurance policies with premiums based primarily or solely upon average miles driven weekly, annually, or both; and/or on daily or weekly commuting mileage.”
Source: http://www.michigan.gov/documents/dleg/Bulletin_2011_10_INS_348557_7.pdf
In most PAYD programs, insurers offer tiered discounts based on the number of miles driven annually. The lower the mileage, the greater the discount. One interesting aspect of Michigan’s regulations is that they allow policies to be written solely on the amount of miles driven, meaning that a provider could in theory use mileage as the only factor when setting the price of a policy.
According to the representative from the OFIR, there are currently no insurers in Michigan offering mileage-based policies.
To learn more about these and other coverage issues, readers can go to http://www.onlineautoinsurance.com/california/ where visitors will find informative resource pages and a quote-comparison generator that can help consumers find the best rates for a policy in California, Michigan or any state.
A representative from the OFIR says there weren’t any specific catalysts for the bulletin but that it is “simply a reminder” to coverage providers.
Mileage-based, or pay-as-you-drive (PAYD), programs have been getting increasing levels of attention in recent months. Touted as being a type of “green” insurance, officials in a number of states around the country are advocating for their implementation. Many are calling the concept a win-win with the potential to provide residents relief in the form of lessened traffic, reduced pollution levels and lower premium rates.
The first PAYD CA auto insurance policies went into effect last month, and states like New York and Massachusetts are calling for studies to see if such options would be viable in their states.
According to the Michigan bulletin, insures in the state “may write automobile insurance policies with premiums based primarily or solely upon average miles driven weekly, annually, or both; and/or on daily or weekly commuting mileage.”
Source: http://www.michigan.gov/documents/dleg/Bulletin_2011_10_INS_348557_7.pdf
In most PAYD programs, insurers offer tiered discounts based on the number of miles driven annually. The lower the mileage, the greater the discount. One interesting aspect of Michigan’s regulations is that they allow policies to be written solely on the amount of miles driven, meaning that a provider could in theory use mileage as the only factor when setting the price of a policy.
According to the representative from the OFIR, there are currently no insurers in Michigan offering mileage-based policies.
To learn more about these and other coverage issues, readers can go to http://www.onlineautoinsurance.com/california/ where visitors will find informative resource pages and a quote-comparison generator that can help consumers find the best rates for a policy in California, Michigan or any state.
Contact Information:
Online Auto Insurance, LLC
Benjamin Zitney
Tel: 909-784-2475
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
Online Auto Insurance, LLC
Benjamin Zitney
Tel: 909-784-2475
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
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