Perhaps related, the majority of respondents incorrectly think that PAYD
programs monitor for drunk driving and driving in high-crime neighborhoods (they do not).
With the recent addition of PAYD
PRO, yearto-date mobile merchant growth has more than doubled, at 132 per cent.
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.
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.
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.
Would a PAYD
approach to all insurance be the answer?
Tags: connected car, consulting, ITS, location-based services, M2M, motor insurance, Pay as you Drive, PAYD
, PHYD, PTOLEMUS, report, research, telematics, strategy, Usage-based Insurance
The MHub837 is a new generation driver behavior monitoring and GPS tracking device specifically tailored for the PAYD
insurance market initiative.
Environmentalists see PAYD
as a way to reduce vehicle miles traveled and the corresponding environmental impacts of those miles; consumer advocates favor PAYD
because it can save consumers money, as these programs incorporate a variable rating factor (mileage) that individuals can influence through driving behavior; and transportation planners view PAYD
as a way to address congestion and reduce the need for building new roads.
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.
To this end, Norwich Union earlier this year introduced a PAYD
pilot scheme for 1,500 18 to 21-yearolds which it claims could cut premiums for the safest customers by up to 30pc - but charge pounds 1 a mile for the riskiest journeys.