Todd Litman of the VTPI is a well-known researcher on, what else, transportation policy. In THIS 34-page PDF, he summarizes long-standing research and recent experience, and describes a fundamental change to charging for vehicle insurance in BC. Be warned, Mr. Litman is an in-depth kind of guy, and his work is a bad place to look if you simply want to bolster partisan rhetoric.
It’s an interesting way to increase choice, help reduce driving and by doing so, reduce crashes and congestion. Today, most motor vehicle costs are either external or one-time (except for fuel). Converting some costs, like insurance, to distance-based will encourage some people to reduce their motor-vehicle usage.
Personally, I’d like to consider introducing more of society’s motor vehicle costs to operators based on distance travelled — so-called distance-based pricing (road or mobility pricing). It’s all part of travel demand management. By turning external costs of motor vehicle operation into distance-variable costs visible to the vehicle operator, those who decide to reduce their distance travelled should be able to see all the financial savings from doing so.