In 2010, companies such as Qualcomm introduced a PAYD
system, and Renault introduced a similar system for fleets.
Perhaps related, the majority of respondents incorrectly think that PAYD
programs monitor for drunk driving and driving in high-crime neighborhoods (they do not).
Early concepts of PAYD
technology were clumsy at best, but the idea is the same as in the early days: to determine customized insurance rates for drivers.
programs often involve a form of mileage verification that allows coverage providers to incorporate actual data on miles traveled, rather than just an estimate from the driver, into their rating calculations.
State and federal officials are getting behind PAYD
because research suggests that if premiums were charged based on miles driven, there would be a reduction in driving and related congestion, along with fewer crashes and less pollution.
In Oregon, for example, insurance companies that offer PAYD
policies receive a $112 tax credit for each policy sold.
Would a PAYD
approach to all insurance be the answer?
programs won't raise your rates if your driving isn't up to par.
The MHub837 is a new generation driver behavior monitoring and GPS tracking device specifically tailored for the PAYD
insurance market initiative.
While New England is leading the PAYD
movement on the East Coast, the PAYD
concept is also gaining momentum on the opposite side of the country.
First conceived a year ago, at the height of a record surge in gasoline prices, the proposed PAYD
0ne of the biggest advantages of PAYD
insurance is the possibility of saving money, which is likely if you don't drive more than average.