"Pay-as-You-Drive" Insurance Can Provide Major Savings, Expert Says

New Program Gains Momentum as Auto Expenses Soar
GOLD RIVER, Calif.--(Business Wire)--
With gas prices through the roof and drivers seeking ways to drive
less and save more, pay-as-you-drive car insurance is emerging as a
prominent way consumers can cut car-related costs.

Hussein Enan, chairman and CEO of the insurance comparison
shopping website Insweb.com, calls pay-as-you-drive insurance a
"modern, innovative way for responsible consumers to save money" on
auto insurance.

"It's fitting with the times," says Enan, a 40-year insurance
industry who founded InsWeb in 1995. "With the price of gas
skyrocketing, American drivers are already looking for ways to drive
less. It makes perfect sense to allow drivers to save money on
insurance if they reduce their mileage."

According to a Brookings Institution report, about two-thirds of
households would benefit from a usage-based program, with an estimated
average savings on auto insurance of about $270 per car per year.

Pay-as-you-drive insurance, which ties the cost of insurance to a
driver's mileage, is gaining momentum in the Northeast in particular.
New Jersey, which historically has among the highest insurance
premiums in the country, just became the fifth state where
Progressive, the third largest auto insurer, is offering
pay-as-you-drive as an option. Drivers who select pay-as-you-drive
have a device installed in their vehicles that measures driving
behavior through distance, time of day and other factors; the factors
are reported to the insurance company and premiums are set
accordingly.

A second program, offered by GMAC Insurance was launched last year
and is currently available in 34 states.

"The key for consumers is to make sure you're the right kind of
driver for a pay-as-you-drive plan," Enan added. "If you drive a lot
at night because you work the night shift or you drive at odd hours,
then you might want to think about other ways to save on insurance."

For those consumers, Enan recommends reevaluating a policy every
six months and comparison shopping. Consumers who do this save an
average $301 per policy, according to one study. Also, use an
insurance comparison website such as InsWeb.com to access free quotes,
a list of agents in your area, and an online library of consumer tips
and articles on reducing insurance costs, Enan says.

Enan is available for interviews and commentary.

for Insweb.com
Dave Closs, 212-447-9292, ext 11
dave@zlokower.com

Copyright Business Wire 2008