Exigen PAYD Media Room
Welcome to our PAYD media room. We hope that you find our information on pay-only-as-you-drive insurance useful. If you can’t find what you’re looking for or have a suggestion on what relevant research or links to add, please email us on pr@exigeninsurance.com.
To schedule interviews and for journalist enquiries, please contact Kevin Haydon at 1.845.797.2976
Pay-As-You-Drive is Coming: Understand the Technology, Business, and Regulatory Realities
Nothing Roger Grobler, CEO of Real Insurance helps others plan their next steps toward a fast emerging auto insurance product in this 2009 ACORD LOMA Forum presentation. video stream (35 min) > mp3 >
Exigen PAYD Survey Report: Insurers Cautiously Moving Toward PAYD Product Offerings
Insurers cite systems technology as biggest barrier and protection of book of business as major driver.
View the full report >
Webinar: Pay Only As You Drive Insurance - Coming Ready or Not
What Are the Business, Technology and Regulatory Realities of PAYD that You Need to Know?
View the webinar >
Hosted by National Underwriter P&C; Presenters from Hollard Insurance; TowerGroup; Exigen Insurance Solutions
The Webinar proved extremely popular, attracting 244 attendees including 163 insurance company representatives from 91 individual insurers. A PDF of the presentation is also available.
Press Releases:
RESOURCES
> Backgrounder: What is pay-as-you-drive auto insurance?
> Fact Sheet: Hollard's Real Insurance "Pay As You DriveTM" Product
> Project Overview: Hollard Australia Implements Exigen Policy, Billing and Claims Solutions (PDF)
> Real Insurance Pay As You Drive TM Media Room
> Pay-As-You-Drive Auto Insurance: A Simple Way to Reduce Driving-Related Harms and Increase Equity, a Brookings Institute, Hamilton Project research report, July 2008
Backgrounder: What is pay-as-you-drive auto insurance?
What is pay-as-you-drive auto insurance?
- Pay-as-you-drive insurance is like buying gasoline: the less you drive, the less you pay. Insurers offer motorists a per-mile rate that incorporate existing rating factors, such as a driver's crash history or geographic location.
- The insurance premium is calculated dynamically, typically according to the amount you drive. There are two types of pay-as-you-drive, also known as usage based insurance:
- Cover is based on the odometer reading of the vehicle.
- Mileage is monitored using a secure black-box device in the vehicle, linked to a national network of satellites and data recorders.
- Evidence suggests that low-mileage drivers are a large untapped market.
- Car insurance is currently sold like an all-you-can-eat meal plan: once you've made the purchase, you may as well gorge. Traditional low-mileage discounts don't come close to capturing the difference in accident risk between high- and low-mileage drivers; those who drive less are penalized.
Benefits
- For consumers: Access to more affordable insurance and more control over their insurance costs.
- For society: Initial research estimates that pricing insurance by the mile could cut total driving by 5 to 15 percent. This would slash the huge environmental impacts of the automobile and lessen the number of accidents and claims. A 10 percent reduction in driving is estimated to result in a 17 percent reduction in accidents. A study also showed that a recent reduction of 2.7% in driving resulted in a 20% actual reduction in US car crash fatalities1. According to the New York Times2, current research puts the total social benefit at $52 billion a year.
- For taxpayers: Reduced driving would also save money on roadwork. Oregon Environmental Council, a nonprofit group working to pilot PAYD in Oregon, estimates that PAYD insurance could trim the state's road-related costs substantially over the next 20 years.
- For insurers: They may see an increased market share and a growing reputation as an innovative, customer-oriented, and socially responsible company. They achieve better alignment of insurance with actual risk and improved customer segmentation. They may also have fewer claims.
1. "Is The U.S. On The Path To The Lowest Motor Vehicle Fatalities In Decades?" by Michael Sivak for the University of Michigan Transportation Research Institute.
2. “Not-So-Free Ride,” New York Times Magazine, by Stephen J. Dubner and Steven D. Levitt; Published: April 20, 2008
Fact Sheet: Hollard's Real Insurance "Pay As You DriveTM" Product
- With Pay As You Drive TM, if you drive less than the average profile for your age and your area you will pay less.
- Pay As You DriveTM is ideal for people who catch public transport and don't drive their car often or have a second or third car and use that car sparingly.
- People who qualify get “Comprehensive” car insurance with a minimum annual premium and purchase usage-based insurance for the kilometres they expect to drive.
- If the kilometre limit is exceeded before the period of insurance ends, you have a more limited form of cover, i.e. fire or theft only, for the reminder of the period of insurance. We call this “Third Party, Fire and Theft cover.”
- Unused kilometres never expire – they can be transferred year to year or they can be refunded.
- If you are about to run out of kilometres you can apply to purchase additional kilometres from Pay As You DriveTM simply by calling Customer Service. Topping up kilometres is easy.
- Pay As You DriveTM reminds you when you may need to top up your kilometres with a sticker for your windscreen and an SMS.
- If you have not had a claim against any of your Pay As You DriveTM policies for three years in a row, you will receive 10% of the total premiums paid to us during that time.
- The odometer reading on your car will have to be verified if you lodge a claim and, if requested by us, when you cancel your insurance.
- No other company offers PAYDTM in Australia.
Go to www.payasyoudrive.com.au to find out more
"Pay as You Drive" is a trademark of Real Insurance in Australia.
”PAYD” is a trademark of Exigen Insurance Solutions, Inc. in the US and other countries.
