Pay-as-you-drive auto insurance coming to N.J.
Image via northeastroads.com.
Starting next week, Progressive Corp. will offer discounts to its New Jersey customers who agree to install a device in their car that monitors how many miles they drive and tracks other driving habits, including when they’re out on the road.
Supporters say this could cut air pollution, as drivers would want to keep their miles down. Detractors say it’s too invasive.
Loretta Worter, vice president of the Insurance Information Institute, called pay-as-you-drive insurance “the wave of the future.”
A recent Brookings Institution study found that if all drivers paid for insurance based on miles driven, overall driving would drop 8 percent in the nation and 13.5 percent in New Jersey. It would reduce total carbon emissions by about 2 percent, the study found.
“Going easy on the pedal and easy on the brakes not only helps safety, but also the environment,” said Mike Replogle, transportation director for the Environmental Defense Fund.
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