Pay as you drive insurance, also known as PAYD insurance, is a form of car insurance that is designed differently from the standard insurance policy model. States with PAYD insurance give drivers the option of paying for insurance corresponding to how much they drive their vehicles; the more that a driver operates his car, the more money he'll spend on insurance. This service is seen as a way of incentivizing alternative options to driving, as people spend less money with the fewer miles that they drive.
Washington state received a massive amount of funding from the government to initiate a program of PAYD insurance, making it one of the leaders in this respect.
Alabama is covered under Progressive insurance's plan called Snapshot, a PAYD insurance type.
Like Alabama, Colorado is also covered under the Snapshot plan.
Kentucky is a third state which falls under Progressive's Snapshot option of insurance coverage.
Louisiana is the fourth state which received the Snapshot coverage plan as well.
Michigan is the first state in the midwest to receive the Snapshot plan by Progressive.
Minnesota has one of the leading Snapshot programs in the United States.
Maryland is one of the only east coast states to be supported by the Snapshot program.
9. New Jersey
New Jersey is the second east coast state to have the Snapshot program.
Oregon followed the Snapshot program after Washington's attempts at PAYD insurance.
There are many different criticisms of PAYD insurance, including the fact that it doesn't seem to encourage safe driving practices.