And one company, State Farm, says this is 'where insurance is headed'.
SInce the idea was rolled out at the beginning of this year, four out of five customers of the Auto Club of Southern California are using the new plans, the the company expects that figure to climb to 90 percent.
Average discounts are running at $68 per customer, according to ACSC, while State Farm says an annual reduction of 500 miles of driving could save average drivers up to 2 percent on their bills.
In California, drivers who sign up simply report their mileage. In other states where variations of the idea have been introduced, car communications systems such as GM's OnStar can be used to verify mileage.
