CSE Insurance Group, a Walnut Creek, CA-based auto insurer has filed paperwork to provide a pay-as-you-drive auto insurance program with the California Department of Insurance.
Once the program is approved, CSE policyholders who join the new SAVE program will earn lower auto insurance premiums as a reward for driving fewer miles. This optional program will be available in an annual policy term with the minimum mileage beginning at 5,000 miles. At the inception of the policy, drivers will provide their estimated mileage for the year, though they will be able to increase their mileage during the policy term if necessary.
If the actual annual mileage is below the original estimated mileage the policyholder will receive a refund, but if it is greater they will be billed for the difference, making this a consumer-managed program.
Speaking on behalf of his company, Pierre Bize, president and CEO told the press, “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.”
CSE has a web portal where policyholders can logon 24 hours a day, 7 days a week to request changes in their mileage, or report actual totals. There are also multiple payment options available to customers.
Pay-as-you-drive is still pretty new in California. It’s also offered by the Insurers Automobile Club of Southern California and State Farm Mutual Insurance.