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New auto insurance offering comes to California

Posted On Wed, December 8, 2010

Californians who don't log a lot of miles on their vehicle could be in for substantial savings on their auto insurance. State Insurance Commissioner Steve Poizner has given the go-ahead to a pay-as-you drive coverage program.

According to a statement, those who have coverage through Auto Club of California could save as much as $68 per vehicle for using the program.

"The voluntary pay-as-you-drive initiative is an innovative program that will allow insurers to offer plans based on more accurate mileage, so that people who choose to drive less will pay less for auto insurance," said Poizner.

State Farm policy holders can also participate in the plan. At the end of next February, participating customers can get a 5 percent discount on their policy for reporting their mileage.

There are additional ways consumers can save on their car insurance. Many providers offer discounts to those who complete a driver's education program, don't receive traffic violations and aren't involved in accidents. Rates also vary depending on vehicle type and where the car is stored. Consumers should discuss discount options with their insurance provider to see if they qualify for other specials.

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