The state of California is considering a new kind of insurance policy, already available from some insurance companies in 34 of the 50 states. It is also an option in many European Union countries, in Canada, and in Japan. This new policy is environmentally sound and reflects the higher costs of driving an automobile in today’s geopolitical and economic conditions. Moreover, it can save policyholders as much as $650. This new policy type is known as “pay-as-you-drive.”