Pay as you go auto insurance: Available in Oregon?

Oregon consumers can find auto insurance that provides discounts based on mileage, or "pay as you go" insurance. In fact, the state encourages this by offering tax credits for insurance companies with a mile-based or time-based rating plan.

Insurance companies that seek to qualify for the tax credits establish formal programs that count miles, time of day, or some combination of those factors to calculate premium. Many other companies consider mileage when setting rates but to a lesser extent.

The key to the "pay as you go" plans is to reward people who drive less and thus reduce the exposure to accidents, greenhouse gases and oil consumption.

What is available?

Of the 134 companies that offer personal auto insurance in Oregon, at least three offer "pay as you drive" options for personal-use autos. Seven companies offer programs for business vehicles. The business programs are geared to small-to-medium fleets, ranging from heavy trucks to business-use passenger vehicles. These include fleets of vehicles for local service, maintenance and delivery.

How does it work?

For most current plans, your car must have a data logging device (DLD), which is plugged into an onboard diagnostic port called an OBDII. The port was available in cars made in the U.S. from 1996 on. For personal insurance, the insurer will normally provide you with the necessary equipment.

Companies offering discounts

• National General Assurance Company: This program is available for OnStar customers and includes six, mileage-based discount levels. Discounts range from 50 percent if you drive less than 2,500 miles a year to 5 percent discount for driving 12,000-15,000 miles.
• Progressive Universal Insurance Company: The company offers premium discounts of 5 percent to 25 percent, depending on when you drive and your total mileage. A base discount applies when you begin the program. After the initial period, the discount is based on the mileage and time of day data from your logging device and is reviewed and applied at each subsequent renewal.
• The Travelers Home and Marine Insurance Company: This program is similar to Progressive's. You receive a 3 percent discount for participating in the program. The additional discount is based on the average weekly mileage driven. The discount can be as high as 20 percent if you drive less than six miles a week (312 miles a year) to no discount if you drive more than 196 miles a week (10,000 miles a year).

Business Auto

The following companies offer special programs in the commercial auto market based on a safety score developed with information from the data recorder: Safeco, American States, First National, General Insurance, Ohio Casualty Insurance Company, West American and American Fire and Casualty.

The rating plan for these companies uses an Onboard Advisor™ Discount for customers who choose to purchase the Onboard Advisor™ telematics product. The product measures velocity, turning, braking, time of day and day of week data. The results enable business customers to proactively manage driver performance and reward safe driving.