Pay-as-you-drive (PAYD) insurance programs are gaining popularity in California and across the U.S.

With these programs, an insurance company takes actual mileage readings from their policy holders, rather than relying on estimations of miles traveled per year. People who keep their total mileage under certain limits can earn discounts, since the fewer miles a person drives, the less likely they are to get into an accident.

PAYD plans are supported by many environmental groups since they may help reduce pollution and traffic, while at the same time helping residents save money on car insurance.

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