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Title: Analysis of national pay-as-you-drive insurance systems and other variable driving charges

Abstract

Under Pay as You Drive insurance (PAYD), drivers would pay part of their automobile insurance premium as a per-gallon surcharge every time they filled their gas tank. By transfering a portion of the cost of owning a vehicle from a fixed cost to a variable cost, PAYD would discourage driving. PAYD has been proposed recently in California as a means of reforming how auto insurance is provided. PAYD proponents claim that, by forcing drivers to purchase at least part of their insurance every time they refuel their car, PAYD would reduce or eliminate the need for uninsured motorist coverage. Some versions of PAYD proposed in California have been combined with a no-fault insurance system, with the intention of further reducing premiums for the average driver. Other states have proposed PAYD systems that would base insurance premiums on annual miles driven. In this report we discuss some of the qualitative issues surrounding adoption of PAYD and other policies that would convert other fixed costs of driving (vehicle registration, safety/emission control system inspection, and driver license renewal) to variable costs. We examine the effects of these policies on two sets of objectives: objectives related to auto insurance reform, and those related tomore » reducing fuel consumption, CO{sub 2} emissions, and vehicle miles traveled. We pay particular attention to the first objective, insurance reform, since this has generated the most interest in PAYD to date, at least at the state level.« less

Authors:
Publication Date:
Research Org.:
Lawrence Berkeley Lab., CA (United States)
Sponsoring Org.:
USDOE, Washington, DC (United States)
OSTI Identifier:
125357
Report Number(s):
LBL-37321
ON: DE96002253; TRN: 95:008177
DOE Contract Number:  
AC03-76SF00098
Resource Type:
Technical Report
Resource Relation:
Other Information: PBD: Jul 1995
Country of Publication:
United States
Language:
English
Subject:
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION; 29 ENERGY PLANNING AND POLICY; AUTOMOBILES; INSURANCE; ENERGY CONSERVATION; FEASIBILITY STUDIES; FUEL CONSUMPTION; TAXES; FINANCIAL INCENTIVES; LEGAL ASPECTS; TAX LAWS

Citation Formats

Wenzel, T. Analysis of national pay-as-you-drive insurance systems and other variable driving charges. United States: N. p., 1995. Web. doi:10.2172/125357.
Wenzel, T. Analysis of national pay-as-you-drive insurance systems and other variable driving charges. United States. doi:10.2172/125357.
Wenzel, T. Sat . "Analysis of national pay-as-you-drive insurance systems and other variable driving charges". United States. doi:10.2172/125357. https://www.osti.gov/servlets/purl/125357.
@article{osti_125357,
title = {Analysis of national pay-as-you-drive insurance systems and other variable driving charges},
author = {Wenzel, T.},
abstractNote = {Under Pay as You Drive insurance (PAYD), drivers would pay part of their automobile insurance premium as a per-gallon surcharge every time they filled their gas tank. By transfering a portion of the cost of owning a vehicle from a fixed cost to a variable cost, PAYD would discourage driving. PAYD has been proposed recently in California as a means of reforming how auto insurance is provided. PAYD proponents claim that, by forcing drivers to purchase at least part of their insurance every time they refuel their car, PAYD would reduce or eliminate the need for uninsured motorist coverage. Some versions of PAYD proposed in California have been combined with a no-fault insurance system, with the intention of further reducing premiums for the average driver. Other states have proposed PAYD systems that would base insurance premiums on annual miles driven. In this report we discuss some of the qualitative issues surrounding adoption of PAYD and other policies that would convert other fixed costs of driving (vehicle registration, safety/emission control system inspection, and driver license renewal) to variable costs. We examine the effects of these policies on two sets of objectives: objectives related to auto insurance reform, and those related to reducing fuel consumption, CO{sub 2} emissions, and vehicle miles traveled. We pay particular attention to the first objective, insurance reform, since this has generated the most interest in PAYD to date, at least at the state level.},
doi = {10.2172/125357},
journal = {},
number = ,
volume = ,
place = {United States},
year = {1995},
month = {7}
}