Continuing its effort to identify insurance-based strategies to reduce global warming and mitigate the effects of climate change, the Climate Change and Global Warming (EX) Task Force has adopted pay-as-you-drive automobile insurance as the centerpiece of its charges for 2011. Such policies, in which a driver’s premium is determined by the number of miles driven, has long been of interest to insurers as a means of incentivizing policyholders to drive less, thereby reducing accident loss costs. More recently, the concept has attracted the interest of climate change activists who theorize that if motorists drive fewer miles, their vehicles’ tailpipe emissions will decrease commensurately, which will lessen the pace and extent of climate change.
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