READING - Pay as You Drive Insurance

Vehicle OdometerPay-As-You-Drive (PAYD) pricing means that a vehicle’s insurance premiums and registration fees are based directly on the amount it is driven. PAYD is an innovative, fair, cost-effective, easy way to increase transport system efficiency, providing many environmental, social, and health benefits.

PAYD pricing is particularly appropriate in British Columbia as an emission reduction strategy. As opposed to many other approaches, it has no technological, financial or practical barriers, and could be implemented in time to help meet Kyoto targets.

This short paper describes PAYD, summarizes its history in BC, and describes how PAYD pricing can help achieve provincial objectives.

This is part of a new campaign to encourage ICBC to implement a PAYD pilot project to evaluate the concept.



"Fair"? I don't think so.

"Fair" in this context should mean "equitable." I don't think the authors of this report know what this word means.

Unfortunately the PAYD model doesn't map well to a geographically diverse region with poor transit (like Metro Vancouver).

There is nothing fair about a model that penalizes people who have to drive further because they can't afford to live closer to work and have limited transit options. People who can affort to live in urban areas benefit from low-cost transit and shorter commutes. The guy who lives in Mission or Abbotsford but works in Burnaby or Vancouver gets screwed because he has no option other than driving.

"Since lower-income motorists tend to drive their vehicles less than average and are particularly responsive to savings opportunities, PAYD tends to be progressive with respect to income." - I don't think this applies to Metro Vancouver as people who make less money tend to live in the suburbs and have no choice but to drive, resulting in a higher proportion of their income going to transportation.


Will have to do a bit or research

Few points come immediately to mind.

Greyhound is not going to operate in western Canada. Some small communities have no public transit. People that live on farms have to commute to the larger centres to sell their products. Natural resource workers have to commute to work. Medical appointments are scheduled on a regular basis to larger communities.

From volunteer work I know kids that do not sign up for after school activities due to problems getting home. Low income families cannot afford to make several trips into town for their kids to be involved. And paying for insurance by the Km will just make the cost higher.

Quick look at how this would be implemented I can see my rates going up.

So far in 2018 I have put 3600K driving people to medical appointments.

Me thinkus this needs some further thought especially for those that live in rural areas and I am not thinking of those in the hinterlands of Abbotsford and Mission.

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