Why are American drivers not using PAYD and still driving with one-price-fits-all car insurance policies?
• There are still many regulatory obstacles to insurance companies offering PAYD policies. • Many insurers are unwilling to explore PAYD because of uncertain start-up and administrative costs. • An essential element of PAYD is to guarantee insurers the right to verify mileage and adjust premiums accordingly. Many insurers are unsatisfied with current methods of mileage collection and their attendant cost. • Insurers appear to lack confidence in the ability of drivers or other 3rd parties to accurately and honestly report their mileage to them. • There is still not a consensus definition of PAYD. This makes it difficult for policymakers and regulators, not to mention insurers and consumers, to identify exactly what they are striving for. It is argued that these obstacles should be overcome if we are serious in achieving the goal of protecting the environment.
