Pay as you drive insurance

[Manhattan]

Supposed to be a voluntary service to cut insurance costs if you're considered a safe and/or low mileage driver. What does everyone think about this? I think the biggest factor will be how much people drive. People with longer commutes or drive more will obviously pay more. Weekend drivers should see their premimums decrease. Wonder if you could even figure time and/or road conditions into the equation.

[schocker]

I thought that this is already kind of in place, how many KM do you drive a year, do you drive to work, if so how much each way?

[CapnCrunch]

Originally posted by schocker
I thought that this is already kind of in place, how many KM do you drive a year, do you drive to work, if so how much each way?

They always ask, but I've never had my premium change whether I drive 5000km a year or 50000.

[Manhattan]

Average to low risk drivers are subsidizing all the high mileage/risk drivers. Even if your commute is short but you drive out to BC or Edmonton every weekend you're on road way more than average and have a much higher risk for accidents than the driver who drives a couple blocks to the local Costco for a grocery run and pays the same premium. This would also solve the problem of high speed/erratic drivers who pay the same premiums because they've yet to be caught or involved in an accident so you're subsidizing their bad driving habits.

[Masked Bandit]

In theory your DISCLOSED commute distance / annual milage is a factor on your insurance but to be honest, it's not something that's checked up on, like tickets & accidents. You tell me you drive 10,000 km a year, I'm not going to argue with you.

This pay as you go stuff exists to a small exentent in parts of the US. It's still a pretty new concept as far as insurance goes BUT I know of one Canadian company that is running a pilot project out in Ontario with hopes to offer it Canada wide in the next few years. I would have to see the program in action before I was willing to buy in but my initial thought would NO WAY am I letting ANYONE put a GPS tracking system in my vehicle for the purpose of monitoring my driving.

[Darell_n]

I've always wanted something like this for my truck. I have full insurance on it year round, but it often sits in my garage for 3-4 weeks at a time if the roads are wet or icy. I only want to pay for when my truck is being driven and not just parked in a garage. (Fire and theft insurance is cheap). Naturally no insurance company is going to understand my driving habits while the truck is moving so that's not an option.

[Sugarphreak]

...

[Masked Bandit]

Coupled with GPS technology it wouldn't be hard for the monitoring system to know what the speed limit is on any given road, compare with what your current speed and BAM...surcharge. Take that a step further, that information is now sent off to CPS or whomever and you get a nice little registered owner ticket in the mail. It's not as big of a stretch as you think. No thanks, not interested.