Texas has passed legislation requiring insurance companies to offer coverage to policyholders that is based on all the mileage an individual drives each year. Previously, a person who was applying for insurance coverage in Tx was only required to provide a figure for the number of miles he or she was driving to and from work.
This number didn’t take into account the number of miles that a person was driving for other purposes. A person may only have to drive a few miles to work, but if he or she was spending hours on the road on the weekend for pleasure, this additional time on the road was not being taken into account when determining the level of risk that driver presented for insurance purposes.
The by-the-mile insurance coverage system is supposed to be more fair for drivers. The people who are spending more time on the road are expected to pay more for their car insurance coverage.
The by-the-mile coverage option may even be better for the environment. In much the same way that people who are trying to conserve energy make a point of shutting off the lights in their home when not in use, having to pay more for car insurance coverage may make a person think twice about taking the car on short drives when they could walk or take public transit instead.