Car insurance news
California entertains low mileage car insurance ‘choices'
Hard-up British consumers were among the first to cash in on the savings offered by low mileage car insurance, but soon even prosperous Californians will be offered the chance.
US insurers State Farm and Automobile Club of Southern California have announced their intention to roll out tracker car insurance policies as of February 2011, offering reputed benefits to anyone driving fewer than 19,000 miles per year.
"I have approved a very innovative product, the first of its kind here in California, one of the first in the world, that will allow consumers to have some choices when it comes to purchasing auto insurance here in California," said the state's Insurance Commissioner at a recent press conference.
The theme of consumer choice was echoed in the speech of a high-ranking State Farm spokesman.
"It's really a choice of the consumer," he said. "What we're really simply doing is offering the consumer a choice that if they choose to drive less, then they would enjoy greater savings by virtue of driving less miles in that car."
The California Department of Insurance has estimated savings of 1 to 10.5 percent for drivers who make the switch to low mileage car insurance.