Current State Regulatory Support for Pay-As-You Drive Automobile Insurance OptionsThis paper examines the potential barriers to implementing Pay-As-You-Drive (PAYD)
automobile insurance programs through a survey of State Insurance Commissioners. The survey was designed to determine whether state regulations currently prohibit PAYD automobile insurance and identify specific requirements that companies would have to meet to obtain approval for such premium structures. A total of 43 states participated in the survey. The results of the survey indicate that PAYD programs can be implemented in a majority of states under their current regulations. Most states will, however, require a demonstration that the price structure is equitable and transparent before adopting such programs.
