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Pay-as-you-Drive Vehicle Insurance as a Tool to Reduce Crash Risk: Results so far and Further Potential

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  • Jan Willem Bolderdijk

    (University of Groningen)

  • Linda Steg

    (University of Groningen)

Abstract

In this paper, we provide an extensive summary of a field experiment we have recently conducted on the behavioural effects of pay-as-you-drive (PAYD) vehicle insurance (Bolderdijk et al., 2011a). We start with a review of the rationale for PAYD schemes from a behavioural science perspective. Next, we describe the design of our study, and discuss and elaborate on the main empirical findings. Based on this, we present practical guidelines for policy makers and insurance companies aiming to introduce PAYD schemes as a tool to reduce crash risk, improve traffic safety, and reduce the negative environmental impacts of car use.

Suggested Citation

  • Jan Willem Bolderdijk & Linda Steg, 2011. "Pay-as-you-Drive Vehicle Insurance as a Tool to Reduce Crash Risk: Results so far and Further Potential," International Transport Forum Discussion Papers 2011/23, OECD Publishing.
    • Handle: RePEc:oec:itfaab:2011/23-en
    DOI: 10.1787/5kg29s5cp90w-en
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    Cited by:

    1. Mortimer, Duncan & Harris, Anthony & Wijnands, Jasper S. & Stevenson, Mark, 2021. "Persistence or reversal? The micro-effects of time-varying financial penalties," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 72-86.

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