February 27, 2003
National Public Radio Explores Pay-Per-Mile Insurance
CLFV owns the Environmental Insurance Agency (EIA), a Massachusetts auto insurance agency. EIA is building the case for a “Pay-Per-Mile” insurance option--where drivers can pay based on how much they drive (To find out more about EIA, please visit www.clfventures.org/eia).
Studies indicate that, if people pay by the mile for auto insurance, this may result in as much as a 20% reduction in driving. Since automobiles are the largest single contributor to greenhouse gas emissions, Pay-Per-Mile pricing could result in a significant reduction in these harmful pollutants. In addition this new type of insurance will provide consumers with a way to control their insurance costs and provide communities with a way to control traffic congestion and accidents.
National Public Radio's “Add & Pad" -- Yale professors Barry Nalebuff and Ian Ayres -- agree that "pay-per-mile" insurance is a great way to control these problems and believe that the current insurance system penalizes far too many people.
To hear the full report, click the link below:
http://marketplace.org/shows/2003/02/25_mpp.html
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