Pay As You Drive

Wednesday, August 06, 2008

Next week, New Jersey will adopt a new pay-as-you-drive insurance plan. The initiative aims to help cashed strapped commuters, as well as benefit the environment. Richard Hutchinson, general manager of Usage Based Insurance for Progressive discusses the company's plan. Also in the conversation, Jason Bordoff of the Brookings Institution. He recently co-authored a study on pay-as-you-drive insurance.


Jason Bordoff and Richard Hutchinson

Comments [15]

Protagoras from Tribeca

If "region" is definite by state this plan would penalize urban drivers compared to rural. In the city we have to do a zillion stops and starts just because of traffic lights and traffic conditions. You may have to stop and start 30 times just to go a single block or jam on the breaks because someone walks into the street from between parked cards. We do not have the option of driving long distances at steady speed, and slow steady changes of speed to not indicate a safer driving style in the city.

The distinction they call "environment" needs to be by traffic and pedestrain density and by how traffic flow is controlled, not by state.

Aug. 07 2008 01:54 PM
World's Toughest Milkman from the_C_train

This scares me more than the Govt watching my web access! I'm pretty sure that onstar is only on GM vehicles for one, second pretty sure onstar is a gps device but maybe the device that progressive is installing as a is not but who knows what it's abilities are. As cars are now equipped with the OBD2 system a lot of this data is stored in the computer.

Most of these programs are hawking some kind of product, some blatantly so and some under the guise of news debate, where was the other side in this segment!

Aug. 06 2008 11:56 PM

How do you prevent tampering? Someone could change their car's clock. There might even be a black market for modifying the device.

Aug. 06 2008 02:41 PM
Jacke from NJ

Yes it sounds like a wonderful idea but i must inject several negative comments

Sounds like risk based life or health insurance based on predicting health risks using DNA testing or previous health history. I thought this approach has been rejected and that insurance is to spread the risk not concentrate it.

A corollary of the above is that whether or not you like the idea of having big brother knowing more and more about you, you will be financially forced into the system because the insurance rates on the non-monitored drivers must rise as the better drivers are skimmed off into the monitored (and cheaper) group.

It is possible (more like probable) that some of the gathered information will end up hurting not helping you

Often money saving ideas dont end up that way. Most of the country bought into self service gas but now, somehow, we in NJ, where there is no self service gas, pay the least for gas. So dont bet this will keep rates down.

Finally from the previous comments I'm amazed at how quickly and how cheaply so many willingly give up privacy and indeed freedom. Bring on the surveillance cameras, gps implants, block watcher grandmas.

Aug. 06 2008 11:34 AM
jen from Brooklyn

I agree with Rebecca - this segment is an inappropriate advertisement for Progressive. I don't object to the topic, but you have two guests who are in favor of it and 90% of the talking is being done by the Progressive representative. Doesn't seem very balanced to me.

Aug. 06 2008 10:21 AM
ariel from nyc

Listener Rebecca ROCKS!!!

Aug. 06 2008 10:20 AM
Michael from Manhattan

Accelerating fast and breaking hard indicates a bad driver , not only in the city but ANYWHERE.
I take it smooth and steady and time my at an intersection slowed by engine breaking and break as sparsely as possible . Idiots that accelerate up to a red light always bother me.

Actually ther should be less accidents at night as there are fewer cars on the roads.

When driving thru residential neighborhoods you should be driving at speeds that dont make it necessary to break hard.

Aug. 06 2008 10:20 AM
ansi vallens from Upstate New York

No one is asking the obvious question: Will this data be used to refuse a claim? Will Progressive guarantee that it wont?

Aug. 06 2008 10:19 AM
westernqueensland from queens

Not only is this a great idea, but I think it should be extended by government. Driving is a privilege, not a right. I think all cars should be equipped with an ezpass-type device so we know where all the cars that are licensed to be on the roads are. Driving is not a right, it is a privilege (which non-drivers subsidize in numerous ways) where cars are is a public concern.

Aug. 06 2008 10:17 AM
dd from Manhattan

First, it does NOT monitor WHERE YOU ARE.

This is good. Till now there has been very little to monitor and enforce against the most dangerous kind of driving--the jerky, speed/brakes/speed/brakes kind of driving.

This system will finally help people learn not to drive like that. That kind of driving 1. kills people, 2. wastes gas, 3. pollutes the air.

This is not big brother. You don't want it, don't get it.

Aug. 06 2008 10:17 AM
the truth from Atlanta/New York

This a good idea for drivers in the NY/NJ area, most people up there drive wild and out of control. There are rental car agencies in the south that won't allow you to take there cars into the NY/NJ area. I am scared for my mother driving there, she by the way would benefit from this.

Aug. 06 2008 10:16 AM

if you drive late at night, etc. and have all the "risk factors", but you have NEVER had an accident... would you be considering exceptional and given a steeper discount?

Aug. 06 2008 10:16 AM
Tony from San Jose, CA

I have been using Progressive's trip sense before they canceled it (and they paid me $50 every 6 months). The chip would also record my speed, when, and I drove.

Also, I like the idea of having a black box, in case I get into an accident, I have more proof. It prevents me from driving above the speed limit.

I live in California.

Why did you cancel it? I want it back.

Aug. 06 2008 10:09 AM
Harvey Bernstein from Yonkers

The little old lady from Pasadena is not a candidate for this insurance plan.

"There was nobody meaner than the little old lady from Pasadena. Go, granny, go"


Aug. 06 2008 10:09 AM
O from Forest Hills

Yikes! They track everywhere's we go with the device.

What's next, the movie "Minority Report" becoming reality?

This is too much invasion of privacy for me. I am not a dog to be tracked.

Aug. 06 2008 10:08 AM

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