Pay-As-You-Drive Auto Insurance: General Information

Project of the National Organization for Women (NOW). Site lists reports, publications and general information.

Information from the National Association of Insurance Commissioners' website.

Of the respondents who would never consider signing up for pay-as-you-drive insurance, 26 percent said they don't understand how it works. Many incorrectly think pay-as-you-drive programs monitor for drunken driving and driving in high-crime neighborhoods. Instead, the programs measure mileage, location, drive times, fuel economy and average speed data.

Of the respondents who would never consider the insurance, 21 percent said their primary concern was sharing personal information.

Millennial generation drivers are most interested in pay-as-you-drive plans. Forty-three percent of drivers between the ages of 18 and 29 said they would consider enrolling and only 36 percent of drivers between the ages of 50 and 64 indicated interest.

Older drivers are the least interested; only 28 percent of respondents older than 65 said they would consider it.

Two-thirds of Americans (64%) have never heard of, nor read anything about, this type of insurance.

Younger drivers seem to express a little more interest, but less than half of drivers in all age groups said they wanted to “pay-as-they-drove.”

Privacy seems to be another major concern, as 27% of respondents said they were worried about their personal information being shared.

51 percent of Americans say they wouldn't consider enrolling in a pay-as-you-drive insurance plan, which also is called usage-based insurance or telematics. That's up from the 37 percent last year who said they wouldn't consider enrolling in such a program.

Metromile targets urban drivers using their cars less than 10,000 miles/year.

According to the February [2014] study of 1,333 motorists in the Chicago metropolitan area, more than half of adult drivers travel less than 10,000 miles a year; that figure increases to 60 percent for 18- to 29-year-olds. Half of the respondents reported making a conscious effort to drive less than they did five years ago, while 57 percent cited high gas prices or a desire to save money as the primary motivator for doing so. Twenty-nine percent said they have used public transportation at least once a month during the past year, and 62 percent said traffic was their biggest frustration when driving in and around the Windy City. Two-thirds said they would consider pay-per-mile insurance as opposed to a traditional flat rate.