Are you sick of regular car insurance bills? Who isn’t? In New York car insurance could be sold by the mile under a plan the Mayor is floating to get more cars off the road. The pay-as-you-drive insurance could be a good idea especially for those who do not drive regularly. With this idea, motorists agree to install a device in their cars that monitors their mileage and driving habits in order to set rates.

Such policies have been available around the country for a decade, but not in New York. Under traditional insurance pricing, those who drive the least help subsidize higher-mileage drivers who are more likely to have accidents. According to a 2008 study by the Brookings Institution, these incentives could reduce driving by as much as 8%, reduce emissions by 2%, oil consumption by 4% and provide an average savings of $270 per car. So, don’t get lost it might cost you more in insurance.

Transportation Commissioner Janette Sadik-Khan said,” A one-size-fits-all approach doesn’t make a lot of sense when it comes to pricing insurance. Paying based only on how much you drive is a potentially innovative way to make it less expensive for New Yorkers to get around.” This is great for grand-pa who only drives to get a newspaper once a day but what about the people who drive all day every day? Will this cost them more?

Earlier in December, Progressive became the first insurance company to receive approval from state regulators to offer usage-based coverage. This plan has Progressive customers agreeing to have their driving habits monitored for 30 days for such variables as acceleration, hard braking, mileage and duration of driving. Said Richard Hutchinson, Progressive’s general manager. With the chance to save as much as 30% on their policies, and zero risk of a rate hike, “people have an incentive to consume less and adjust their driving,” he said.

Although it isn’t yet available in New York, GMAC offers a pay-as-you-go option around the country utilizing its On-Star system. “You must have under 15,000 miles a year, which is 288 miles a week, in order to qualify for their plan.” said Joel Ohman a certified financial planner. So, save money make Johnny walk to basketball practice. Save money. Critics of the programs have expressed concerns about the invasion of privacy that comes with these monitoring devices, said Edmunds editor Philip Reed.