SACRAMENTO, CA –Assemblymember Jared Huffman (D-San Rafael) and Insurance Commissioner Steve Poizner announced the release of California’s first “Green” auto insurance program today.  The regulations, which will undergo a public review process in the coming months, allow insurers to offer voluntary auto insurance programs that cut premiums for consumers who verify a reduction in miles driven. 

Since 2007, Assemblymember Huffman has been promoting “Green” auto insurance programs, also known as “Pay As You Drive” (PAYD), through the Legislature.  His Assembly Bill 2800 garnered support from a variety of stakeholders including Environmental Defense Fund, CalSTART (clean air and energy efficiency), Natural Resources Defense Council, Environment California, and many others. 

Huffman decided not to send his AB 2800 to the Governor after working with Insurance Commissioner Poizner on a regulatory approach to achieve their shared goals of saving consumers’ money and reducing greenhouse gas emissions.  The culmination of that work was today’s unveiling of draft regulations. 

“This is a win-win for consumers and the environment.  I’m glad that my legislation, AB 2800, helped move us in a direction that all the stakeholders can support.  I commend Commissioner Poizner for taking the ball over the goal line,” said Assemblymember Huffman.  

Under current law, drivers are only required to provide auto-insurers with estimates of their projected mileage.  This creates an inaccurate system that may or may not reward those who are truly driving less. 

According to the Brookings Institution, these regulations have the potential to save households an average of $270 per year on their car insurance. 

Californians own 26 million cars and drive 330 billion miles per year.  Based on a pilot project in Texas, California could cut 55 million tons of carbon dioxide between 2009 and 2020 – akin to taking 10 million cars off the road – if just 30 percent of drivers participate.

Over the next year, Californians will have an opportunity to participate in the regulatory process through the Department of Insurance.  PAYD is available from insurers in 34 states as well as Canada, Japan and Europe.