Pay-As-You-Drive™ in Europe
Friday, 28 September 2007

Launched in 2005 in Britain by Norwich Union and released soon after in Italy and Spain, Pay-As-You-Drive™ experienced its largest period of growth in 2007.

 Switzerland and France are now in the process of setting it up too. However, many in these two countries wonder whether this new method of determining insurance rates will be welcomed with open arms. Because French and Swiss insurance premiums are significantly lower than those in Britain, it will be harder to award meaningful reductions. Let’s remember that since the CNIL’s (National Commission of Information Technology and Privacy Rights) decision in December 2005, French insurers have been constrained by strict protocols regarding the use of downloaded data.

Meanwhile, in Italy the number of contracts is nearly 1000 per day and is on the verge of exceeding the cap of half a million vehicles equipped with PAYD by the end of the year 2007.

In Spain, more than 9,000 young people have registered to participate in the PAYD experience. And if you consider the number of visitors (more than 200,000) on the website of the Spanish insurer MAPFRE, it is undeniable that excitement for this kind of insurance is growing.

The Swiss, despite their relative delay, remain very enthusiastic with the idea of seeing PAYD adopted in their country, according to Ueli Zengler, commercial and financial director of the ATE (Association of Transportation and Environment).

EIn France, the Summit on the Environment obliging, many believe that a “rate based on usage” could also help reduce CO2 emissions.


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