Cse Enters Pay-as-you-drive Insurance

Pay-as-you-drive insurance is gaining momentum across the nation. It all started with Progressive and now it is trickling down to smaller carriers. CSE Insurance Group will begin offering the coverage in California as soon as the Department of Insurance approves its SAVE program.

A voluntary program, it will be available as an annual policy term with the minimum mileage starting at 5,000 miles. It offers a rating factor for each mile driven, so a driver only pays for that exact number of miles driven each year. This is different from any other pay-drive program in the market as other programs offer use "mileage bands" to calculate policy premiums. This method of calculating the mileage should allow for a maximum discount.

''The new SAVE Program structure is quite simple,'' comments Pierre Bize, President and CEO of CSE. Bize adds, ''This is a true pay by the mile program where our customers pay for the miles they drive. Not only are drivers reporting their actual mileage, they are reimbursed for the difference between their estimated and actual annual mileage. We believe the SAVE Program generates other clear benefits that fit squarely into our green initiative efforts by encouraging program participants to drive less.''

The program not only offers discounts, but would reimburse a driver for the difference between the number of estimated miles the policy was rated on and the actual number of miles driven in a single year. Let's hope California approves the program and it spreads across the nation.

By: Daryl Shaw

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Unfortunately, PAYD insurance isn't available for bikes. To insure your bike, check with Motorcycle Insurance California.