TNO and CE studied the possibility to introduce a mileage based insurance for cars in the Netherlands. The project was commissioned by the Dutch Ministry of Transport, Public Works and Watermanagement. At this moment the car users pay a fixed amount for their insurance per month or quarter, independent of the quantity of kilometers traveled. PAYD can be an incentive to drive less. And if driving less can result in a reduction in the number of accidents happening, PAYD will increase traffic safety. Data from the Dutch Centre of Insurance Statistics show that the crash related claims partly depend on the yearly car mileage. We have elaborated a case in order to make a first estimation of the potential costs and benefits to society. From these calculations the conclusion may be drawn that the potential benefits to society could be in the order of several hundreds of millions of Euros per year. PAYD seems to be a win-win situation for consumers, insurance companies and society, but the question remains how to allocate the costs and benefits in a balanced way. (Author/publisher)
Abstract