Pay As You Drive
is aligned with a natural insurance objective, i.e., adjusting premiums to risk profiles. The essential metrics that PAYD proposes is kilometres driven, as this is the main variable in risk exposure.
- Traditional Model: Age, sex, engine power and driver experience.
- PAYD Model: Km driven, % Overspeed, % Night driving and average RPMs.
- PAYD is implemented across the world: Over 3 million cars in Italy and nearly 20% of new insurance policies. Over 700,000 cars in the UK. In Spain since 2007.