The Oregon Environmental Council announced in June that the Oregon legislature had approved a measure that will encourage auto insurance companies to try out cents-per-mile premiums.

"Risk of accident depends, in large part, on how much a driver is on the road," said OEC staffer Chris Hagerbaumer. "Oregonians who choose to drive less - by ridesharing, using transit, telecommuting, walking or bicycling - see little, if any, reduction in their auto insurance rates. ‘Pay-as-you-drive’ insurance is an innovative pricing concept that will reward motorists for driving less and give them more control over premiums."

The OR program, if approved by Gov. Ted Kulongoski, will provide a limited tax credit to companies that offer per-mile insurance premiums. Advocates say auto insurers are interested in ‘pay-as-you-drive’ programs. But companies face the costs of setting up a new system and tracking mileage. Legislators and advocates hope the new tax credit will give companies the incentive to create the necessary infrastructure. The state legislation was backed by environmentalists, transportation reformers, clean air groups, transit agencies and the City of Portland.

Studies indicate that pay-as-you-drive insurance could result in a 10% reduction in annual mileage for participating drivers. For more info, visit www.orcouncil.org/Pollution/PAYD.htm.

MTR search facility and back issues:

Search our database of all past issues of Mobilizing the Region since Fall, 1994.

Go to index of all Mobilizing the Region back issues