Pay as you drive

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Pay As You Drive (PAYD, sometimes also “Pay How You Drive”) is a special car insurance in which the premium is calculated based on the way in which the vehicle is used.

The kilometers driven as well as the driving style (e.g. compliance with speed limits) are technically documented in the vehicle and transmitted to the insurer for evaluation. There are theoretically three variants of data processing:

  • The raw data is transmitted to the insurer, who evaluates the data himself
  • The raw data is transmitted to a service provider who evaluates the data for the insurer
  • The raw data is evaluated directly in the vehicle and transmitted to the insurer

According to the second and third concept, the insurer therefore has no access to the raw data and thus cannot create any movement profiles for the policyholder or the driver. In practice, the second variant has almost always been used so far. Strictly speaking, these are not “real” Pay As You Drive tariffs, but classic tariffs with a telematics discount option. This currently amounts to up to 40% of the regular premium.

Advantages over traditional types of insurance

Insurance companies and manufacturers of Pay As You Drive systems point out that individual driving behavior does not only affect the amount of the insurance premium over the course of years, but rather immediately. In addition to greater fairness, this also results in a higher motivation for compliant driving behavior - provided that compliant driving behavior is rewarded in a specific design of the system. This would lead to an increase in safety in the overall traffic system.

If the system were introduced on a massive scale, special effects would presumably arise in the group of novice drivers, in which the driving style and willingness to take risks are the most diverse.

Some PAYD systems require the installation of a GPS receiver. This could also be used to locate a vehicle in the event of a breakdown, an accident or in the event of theft. The possibility of localization in turn harbors the risk of abuse - see criticism.

criticism

In the discussion about data protection and data misuse, there is the thesis that once collected data is always exposed to the risk of misuse and misuse can only be ruled out by not collecting it. Based on this basic conviction and the damage potential that a conceivable misuse of the detailed raw data harbors, a manufacturer of a Pay As You Drive system received a Big Brother Award in 2007 .

In detail, it is feared that, due to the possible financial advantage for participants in the system, voluntary participation in the long term will in fact become a forced one, especially if the premiums rise overall (so-called economic compulsion). Getting used to permanent surveillance is not conducive to a liberal, self-confident citizen awareness.

There is also a monitoring risk if policyholders and vehicle users differ from one another. This applies in particular to business vehicle use, such as for sales representatives.

The disadvantage of different groups of people is also seen as problematic. For example, shift workers could receive point deductions for night trips that are less reliable than day trips.

On March 4, 2009, the parliamentary group of the FDP sent a small request to the federal government about the “Pay-as-you-drive” bonus system using a telematics box (electronic logbook) that some motor vehicle insurers are currently testing ”. The questions are aimed in particular at data protection, possible monitoring and how this can be prevented, since "information is continuously transmitted via satellite to a data center and a log is created about where, when and how the policyholder drives". In its answer, the Federal Government essentially refers to the private law nature of such insurance contracts.

Web links

Individual evidence

  1. ^ A b c Daniel Schumann: Pay As You Drive - The legal admissibility of telematics tariffs in the private customer segment of motor vehicle liability insurance . Ed .: Torsten Körber, J.-Matthias Graf von der Schulenburg, Stefan Weber. Karlsruhe 2017, ISBN 978-3-89952-988-3 .
  2. ↑ Torsten J. Gerpott, Sabrina Berg: Preferences for Pay-As-You-Drive Insurance Features for Private Customers , zfbf 2012, pp. 456, 458; Stephan C. Maier, Hendrik Todte: Telematics - a revolution in motor vehicle insurance? , ZfV 2013, p. 776.
  3. ^ Dominik Klimke: Telematics tariffs in motor vehicle insurance , r + s 2015, pp. 217, 218; Harald Haller: Everything depends on trust , VW 2013, p. 51.
  4. ↑ Laudation on the presentation of the Big Brother Award 2007
  5. ↑ Volker Lüdemann, Christin Sengstacken, Kerstin Vogelpohl: Pay as you drive: data protection in telematics insurance. In: RDV 6/2014, pp. 302–306.
  6. ↑ Inquiry from the FDP parliamentary group: http://dip21.bundestag.de/dip21/btd/16/121/1612173.pdf Answer from the Federal Government: http://dip21.bundestag.de/dip21/btd/16/123/ 1612381.pdf