Calf. Insurance commissioner issues final pay-as-you-go auto insurance regulation

California Insurance Commissioner Steve Poizner on Thursday issue ending pay-as-you-drive convention, which make possible insurers to present rates that are based on definite miles driven as opposed to estimated miles driven.

Poizner initially proposed pay-as-you-drive regulations in September 2008.

As soon as convention go into upshot, insurance companies may offer a verified mileage program instead of, or in calculation to, a traditional estimated mileage program. The idea allows California drivers to save money and reduce emissions by driving less.

As part of new regulations, an insurer would verify the driver's miles through a variety of methods. As far as privacy concerns, final regulations prohibit insurers from gathering location data from insurance customers.

Insurance already offers some types of this insurance in some states. GMAC, using its OnStar, offers a discount for low-mileage drivers in dozens of states.

Poizner’s announcement did not mention when regulations could go into effect.