California insurance companies are looking at offering a new product for their consumers. Rather than simply offering insurance based upon a set monthly premium many insurance companies are beginning to offer discounts based upon the amount of miles driven each month.

In an effort to cut back air pollution as well as reduce the number of drivers on the roads the California state government has authorized the implementation of pay-by-the mile auto insurance. This could mean potentially substantial savings each month in insurance premiums for drivers who qualify as well as greater flexibility for those first seeking auto insurance coverage.

Texas first pioneered this technique with MileMeter, a plan offering payment "chunks" ranging from 1000 to 6000 miles and can be purchased repeatedly when miles run out. Many critics are praising this new insurance technique as it encourages relief from traffic congestion, air pollution and helps reduce the number of traffic collisions by encouraging drivers to drive less in order to save more.

Major players in the insurance industry such as Allstate and Progressive insurance companies have all announced that they are actively considering implementing a pay-by-the-mile policy of their own however have not made any official plans available as of yet. For consumers who are currently insured in one of these companies look forward for these plans in the future if you are not an avid driver.

While these new options will mostly benefit urban dwellers who can rely more upon public transportation suburban commuters can benefit as well as the roads will most likely less congested, allowing driver to take greater advantage of more economical vehicles such as hybrids or electric cars.

If you're thinking about getting a pay-by-the-mile insurance plan for your own vehicle consider browsing through some online insurance websites such as EZQuoteGuide.com that can help you find a plan in your area. While not all insurance providers will offer such a plan at this time it can be expected a plan such as this will become more common in the future as they can help benefit consumers across the board and provide a competitive advantage for many companies. Keep an eye on their local auto insurance news in order to make sure that you're up to speed on what is going on in that you can take full advantage of one of these deals when they become available near you.