so, when do you pay? afterall, we are providing a service…. do they have to be with you for a certain timeframe before they can use this service? and what happens if they go over the amount? or had an accident during the timeframe? will you adjust the timeframe of the accident based on actual date and increase the policy right away? afterall, sounds like you are adjusting the premiums as you go..
The only way it can work is with some sort of tracking/monitoring device. I write in Cali where we are required to ask how many miles they drive and use that information to rate… it’s amazing that no one in that state drives any more than 6000 miles a year.
Like most things in Cali, it was just not thought out very well.
PAYD can only work if people get over the idea that a device that monitors driving behaviors connected to their cars is not “Big Brother”. Insurance companies don’t care that you’re cheating on your wife and wouldn’t use those devices to spy on that (unless there’s some actuarial evidence that people who cheat are more likely to have an accident – probably while trying to run from an angry wife).
I remember years ago my Dad, who was risk manager for a major oil company, was asked by Hank Greenberg if they could come up with a way to have drivers pay their premiums while filling up their tanks.
Seemed like a good idea at the time because the charges were incrementally small, and based on usage of fuel or miles travelled since the last fill-up. And the driver had to use a special credit card which would track the transactions automatically. Plus the retailer would get a fee for processing each transaction.
I don’t recall why the idea didn’t get past the thought stage. Maybe there were problems in collecting service fees without an agency license, or whatever. But it sounded intriguing and showed Hank’s creativity.
Lovely…always a great idea to amend insurance law (RCW 48) by burying the change in the motor vehicle code (RCW 46) provisions relating to financial responsibility.
Washington is the lastest state that is considering implementing pay-as-you-drive legislation, in which drivers would pay insurance premiums based in part on the miles driven per year.
I’ve been a part of the insurance industry for several years but it has been along time since I have rated auto coverage. Hasn’t it always been based on mileage? How many miles to and from work each way and how many annual miles driven were questions asked when I recently took out new auto coverage. Am I missing something?
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so, when do you pay? afterall, we are providing a service…. do they have to be with you for a certain timeframe before they can use this service? and what happens if they go over the amount? or had an accident during the timeframe? will you adjust the timeframe of the accident based on actual date and increase the policy right away? afterall, sounds like you are adjusting the premiums as you go..
confused?!
The only way it can work is with some sort of tracking/monitoring device. I write in Cali where we are required to ask how many miles they drive and use that information to rate… it’s amazing that no one in that state drives any more than 6000 miles a year.
Like most things in Cali, it was just not thought out very well.
PAYD can only work if people get over the idea that a device that monitors driving behaviors connected to their cars is not “Big Brother”. Insurance companies don’t care that you’re cheating on your wife and wouldn’t use those devices to spy on that (unless there’s some actuarial evidence that people who cheat are more likely to have an accident – probably while trying to run from an angry wife).
I remember years ago my Dad, who was risk manager for a major oil company, was asked by Hank Greenberg if they could come up with a way to have drivers pay their premiums while filling up their tanks.
Seemed like a good idea at the time because the charges were incrementally small, and based on usage of fuel or miles travelled since the last fill-up. And the driver had to use a special credit card which would track the transactions automatically. Plus the retailer would get a fee for processing each transaction.
I don’t recall why the idea didn’t get past the thought stage. Maybe there were problems in collecting service fees without an agency license, or whatever. But it sounded intriguing and showed Hank’s creativity.
Lovely…always a great idea to amend insurance law (RCW 48) by burying the change in the motor vehicle code (RCW 46) provisions relating to financial responsibility.
Washington is the lastest state that is considering implementing pay-as-you-drive legislation, in which drivers would pay insurance premiums based in part on the miles driven per year.
“Lastest”????
I’ve been a part of the insurance industry for several years but it has been along time since I have rated auto coverage. Hasn’t it always been based on mileage? How many miles to and from work each way and how many annual miles driven were questions asked when I recently took out new auto coverage. Am I missing something?
haaa haaa haaa haaa haaa haaaa haaaa haaaa haaaa haaaa haaaa haaa haaa haaa haaa haaa haaa haaa ha ha idiots ha ha haaa haaa haaa haaa haaa haaa haaa haaa haaa haaa haaa haaa haaa haaaa haa ha ha ha ha ha
Maybe you should just ask them how many miles are on their car each year/6 months or whatever. Then do the math. 6,000 miles a year, I agree.
The mileage questions have always been asked, but they’re notoriously difficult to verify.
PAYD proposals generally revolve around changing the structure of rates from “per car-year” to “per car-mile”