At AltWheels Boston 2007, the Environmental Insurance Agency (EIA) told me they want people that drive less to pay less for insurance. Currently, EIA is working to get laws changed in Massachusetts and New Hampshire. The idea of paying for how much you drive is called pay-as-you-drive (PAYD) and it's offered by several insurance companies right now. Progressive's Tripsense offers discounts of up 25 percent based on how much the vehicle is driven. GMAC has offered mileage-based discounts to Onstar subscribers in certain states. Italian insurer SARA offers a per-day insurance policy where customers send text messages indicating they will drive the next day or next week. The Dutch insurance company Pazomat offers 50 percent discounts dependent on the amount of driving you do. PAYD is a great way to reduce insurance costs for people who drive less. Too bad it's an uphill climb to get it enacted.


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