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The idea of paying for your insurance by the mile is not new. MileMeter, in Texas, offers pay-as-you-drive (PAYD) rates and California has been using mileage brackets to set insurance rates for years. A new, more precise PAYD system is under discussion in California that would give people who drive less a financial incentive to do keep doing so – and maybe convince people on the fence to find an alternative when possible.

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Photo of West Texas by longhorndave. Licensed under Creative Commons license 2.0.

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