Pay as you Drive – further information


I recently mentioned the B.C. Sustainable Energy Association’s stance that vehicle insurance should be based upon the amount of km driven by the vehicle each year. I have since found further information in the form of a pdf document published by the Victoria Transportation Policy Institute. It is well worth reading and covers the topic very well.

A few points worth mentioning:

– they estimate that “pay as you drive” would reduce vehicle use in the B.C. by 10 to 15%.

– a graph on page 2 shows increased vehicle trips by those who have higher incomes – ie the poor drive less and the better off drive more, yet they both pay the same premiums (all else being equal).

– provides information showing that vehicle accidents increase with vehicle mileage.

– estimated to reduce vehicle emissions by about 10%.

– this model is already used in other jurisdictions.

This is an excellent paper and well worth reading. Find it here:

Look to the bottom of the page on the right and click on the title “Pay as you drive pricing in British Columbia – backgrounder”.



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