Remember the post where volunteers get more cash the less they
drove (or drove during certain times or routes)? Well, Jeremy Faludi of WorldChanging discuss the concept called Pay-Per-Mile or Pay-As-You-Drive
(PAYD). Simply, your insurance rate varies on how much you drive.
Mr. Faludi discusses the benefits of such
policies: equalizing cost between high and low income populations; balancing the costs paid by genders (women already
pay less insurance because they drive 40% less but the reduction is not commensurate); and increased insurance options.
There would be other, non-direct, benefits as well such as helping the environment since less people would
drive or take other forms of transportation. This also reduces repair costs on road infrastructure.
While
several countries and, in the U.S., several states, have such insurances available, Mr. Faludi admits there would be
issues, such as privacy, in implementing PAYD on a world-wide basis.
What do you think of such policies?