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Pay-As-You-Drive: The Movie

by Eric Hess

Last December, Alan Durning and Eric de Place co-authored an article in the Tyee calling for Pay-As-You-Drive car insurance in British Columbia. One reader was so inspired, he made this six-minute video encouraging viewers to sign a petition to bring PAYD to BC:

It's definitely worth a watch; a good rundown on the benefits of PAYD, and the challenges it faces. Live in BC? Help spread the word.

This post originally appeared on Sightline Daily.

More on PAYD in the Worldchanging archives:

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This seems similar to the HOT lanes going in here in my area. However, this is much more strict. A great idea to clear up the traffic congestion and help the environment too. Really don't see much downside to this.
simple market timing

Posted by: Ed Fowlkes on 1 Jul 10

I think that this is a good idea, however it should go further by offering a rebate on the insurance if you stay below your estimated mileage over the period of the year.

Posted by: Caroline on 2 Jul 10

I think that this is a novel idea but I cannot help but wonder a few challenges to this thought. One is that if one drives less, does that make that person a safer driver. If they have less experience driving are they less of a risk for getting into an accident? I do understand the counterargument that the more one drives the greater chance they will get into an accident. But this is not really a game of chance. I have never been in an accident and I average around 30,000 kms a year. The other thing is that one can simply abuse the system and disconnect their odemetre.

Nevertheless, I think the idea of pay as you go insurance may increase one's awareness and inspire them to drive less. Just like charging more for water usage during peak times.

Posted by: tractor sales on 2 Jul 10

Tractor Sales, you're probably correct, but I'd guess the difference is negligible in the grand scheme of things. Other factors like years of driving experience, driving habits, region, etc., end up being more significant factors in safety. When it comes to accident rates, you'll find things are very well correlated with basic time on the road.

Posted by: Matt on 2 Jul 10

It's an excellent idea and I like Caroline's suggestion where you receive a rebate if you stay under your estimated mileage. Tractor Sales, you bring up a good point, but I do agree that accidents are definitely correlated with miles driven and it wouldn't be such a bad thing to motivate people to drive less!

Posted by: Solar Installer on 3 Jul 10

I think that this a very clever idea, I must agree about the rebate on insurance if you stay below your declared mileage over the yearly period.

About Me

Posted by: kevin kings on 9 Jul 10

Interesting concept. Being involved in the personal insurance industry, it is a little different than cars. Then again, why would you deactivate your insurance when the car is in the driveway? You wouldn't just the level of coverage. Sounds like an actuarial nightmare to me.

Posted by: Insurance on 11 Jul 10

Excellent idea. It will save a lot for people using their vehicles sparingly. Currently we are paying for vehicles, that lies unused for most of the time.

Posted by: mustrahool on 11 Jul 10

its a very interesting concept that just wont ever come about in my opinion but with new transportation options on the rise it will be interesting to see how much travel changes in the next 10 years.

coop's faqs

Posted by: JJ on 11 Jul 10

I don't think pay-as-you drive will work. There are just too many ways to game the system. Disconnects, small faraday cages, etc. It'd be great if it could work, but I don't think it will.

Men Made Easy

Posted by: mmes on 11 Jul 10

A good concept that could easily be extrapolated on other areas (pay-as-you... you name it). However, more metering, administration, etc. may make it unworkable, or rather, create another snowball effect, let alone abuse. Thanks for spreading the word nevertheless.

Posted by: Dolmetscher Russisch on 13 Jul 10

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