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Incremental auto insurance.

Mohamed M. El-Gasseir of Rumla, Inc., in San Francisco offers another tack for discouraging unnecessary motoring: pay-as-you-drive insurance. For each gallon of gas purchased during the year, drivers would pay an additional, stateregulated. at-the-pump fee. Such payments- not a tax- would supplement fixed annual fees that drivers pay the insurer of their choice. Together, fixed and supplemental fees would be structured to average only what drivers now pay for coverage.

Under such a system, "practically everyone benefits;' ElGasseir says. Drivers pay only for the miles they travel. And because the gas-pump fees will reduce the number of uninsured drivers, he notes, insurance companies should be able to lower their fixed costs. Finally, by discouraging travel, the plan should cut traffic congestion and accidents. El-Gasseir cites a study by the state of California indicating that in the long run, this plan might cut gasoline use by 16 to 41 percent.
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Title Annotation:plan would allow motorists to pay only for miles traveled
Publication:Science News
Article Type:Brief Article
Date:Mar 6, 1993
Words:149
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