Drive less, save money and save the environment – it’s the theory that helps motorists to think green but for many, the ‘drive less’ motto is simply not viable. However, perhaps some further financial incentives could alter that perspective.

The California Department for Insurance Commissioner Steve Poizner is planning to introduce a new green car insurance option, known as ‘pay as you go’.

The idea is to link car insurance premiums more accurately to the amount of miles customers actually drive. With encouragement for drivers to travel fewer miles, Poizner believes the new insurance option could help to drive down vehicle emissions and also reduce the number of accidents on the roads.

According to the Environmental Defence Fund, if 30 per cent of Golden state drivers were to participate in this new form of voluntary coverage then the state could avoid 55 million tons of carbon dioxide between 2009 and 2020. It is estimated that this would save 5.5billion gallons of petrol, $40 million in car-related expenses and would be the equivalent of taking 10million cars off the road.

Of course the idea of insurance premiums based around mileage is nothing new – in the UK many car insurance providers offer similar schemes, with mileage limits equating to discounts on premiums, particularly for classic car drivers who use their vehicles infrequently.

However, the new regulations in California would allow consumers to verify their mileage by odometer readings or a technological device used to collect mileage data.