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News: 2012 Press Release
For Release: September 7, 2012
Media Calls Only: 916-492-3566
Insurance Commissioner Jones Announces Approval Of Esurance Filing To Offer Pay-Drive Program
Insurance Commissioner Dave Jones today announced his approval of a personal auto filing by Esurance that will allow its policyholders to voluntarily participate in a unique pay-drive verified mileage auto program. Under the company's "Drive Less, Save More" program, customers provide odometer readings each term for possible additional savings on their car insurance.
"Esurance is the latest California company to offer consumers a simple and innovative insurance option that allows motorists who drive fewer miles to save money by only being charged for the insurance they need and use," said Commissioner Jones. "At the same time, by lowering their mileage they reduce toxic emissions that hurt the environment."
"Esurance is continually looking for ways to lower costs for drivers in California, and our "Drive Less, Save More" program offers them a choice that is tailored to individual driving habits," said Esurance President and CEO Gary Tolman. "We're pleased that Commissioner Jones has approved our new program, which allows Californians to reduce their expenses at a time when gas prices are on the rise."
Beginning August 11, 2012 Esurance initiated its verified mileage program by applying verified annual mileage factors when calculating policy premiums for participating insureds. Customers who agree to participate can see savings of up to 15 percent on their premium depending on how much they reduce the number of miles they drive. Customers that reduce their driving by as little as 500-1000 miles can see reduced rates on their car insurance premiums, and they need only to report their vehicle odometer readings upon policy purchase, and with each renewal.
The "Pay-Drive" verified mileage option was proposed by the California Department of Insurance in 2008 and the regulations were approved by the Office of Administrative Law in 2009. The regulation provides insurers with an additional option for determining the number of miles driven that is to be applied in the rating calculation. While companies continue to offer traditional insurance based on estimated mileage, they now can also offer a verified mileage program instead, or in addition to current options. Other companies that offer pay-drive programs include: The Automobile Club of Southern California, State Farm, CSE Safeguard Insurance Company and the Sequoia Insurance Company of Marin.
Please visit the Department of Insurance Web site at www.insurance.ca.gov. Non media inquiries should be directed to the Consumer Hotline at 800.927.HELP. Callers from out of state, please dial 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.
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