VTPI News Traffic Safety Special Edition
"Rethinking Transportation Safety" ( http://www.planetizen.com/node/36138 )
This new blog describes a paradigm shift that is changing the way transportation professionals think about safety. The new paradigm recognizes that crash risk increases with per capita vehicle mileage, so policies that stimulate vehicle travel tend to increase crashes, while traffic reductions and shifts to alternative modes tend to increase safety and health. This new approach expands the scope of traffic safety strategies to include mobility management and smart growth. These strategies reduce total crashes and provide co-benefits such as congestion reduction, road and parking facility cost savings, consumer savings, energy conservation, pollution reductions, improved mobility for non-drivers, and improved public fitness and health.
One example is "Pay-As-You-Drive Insurance," the subject of a workshop to be held in Vancouver tomorrow, described in the media advisory below. Spaces are still available.
Pay-As-You-Drive Insurance Workshop Media Advisory
For Information: Todd Litman (250-360-1560; litman@...)
VANCOUVER, November 20 - British Columbia�s first public workshop on Pay-As-You-Drive (PAYD) vehicle insurance takes place tomorrow at UBCs downtown campus.
Date: Friday, 21 November 2008
Time: 1:00 4:30 p.m.
Place: UBC Robson Square (Room C150)
800 Robson Street
Vancouver, British Columbia
PAYD pricing means that insurance premiums are based directly on the amount a vehicle is driven during the policy term, offering motorists a financial incentive to reduce their vehicle travel. This provides several benefits:
- Increased affordability and consumer savings.
- Substantial reductions in traffic crashes and casualties.
- Reduced traffic congestion, energy consumption and pollution emissions.
PAYD pilot projects are being implemented in other jurisdictions including California, Washington and Texas.
The Insurance Corporation of British Columbia declined to participate in this workshop, stating that ICBCs current priorities do not include further exploration of distance-based insurance.
�This is unfortunate�, said workshop speaker Todd Litman, an internationally recognized expert on PAYD pricing. �Pay-as-you-drive insurance rewards motorists when they drive less, with greater incentives for higher-risk drivers. It can significantly reduce traffic crashes and associated costs, and help solve other transportation problems including congestion and pollution. It also increases insurance affordability. ICBC should support PAYD research.�
- Q: Will I be required to purchase my automobile insurance under the PAYD system?
- A: PAYD can be a consumer option. As opposed to paying a set premium price for insurance, you will be billed according to the number of kilometres you drive.
- Q: I drive long distances and more than the average driver. How will PAYD insurance benefit me as a frequent driver?
- A: Again, PAYD is optional. Motorists would choose it if they save money. All motorists benefit from reduced traffic congestion and accident risk.
- Q: What are the environmental benefits of PAYD insurance?
- A: PAYD insurance helps reduce CO2 emissions and traffic congestion.
- Q: What are the economic benefits of PAYD insurance?
- A: Drivers can save several hundreds of dollars annually in vehicle insurance, and it reduces external costs including crash risk, traffic congestion, road and parking facility costs.
- Q: Will PAYD cause people to give up their cars?
- A: No. PAYD simply prices insurance fairly according to each vehicle's usage. PAYD reduces driving costs and increases insurance affordability.
- Q: What other factors (besides mileage) are incorporated in PAYD rates?
- A: PAYD premiums incorporate all existing rating factors such as driving experience and territory. Lower risk drivers pay less per kilometer than a high risk driver.
Workshop Information ( http://clevername.wufoo.com/forms/pay-as-you-drive-general-information ).
"Pay-As-You-Drive Pricing in British Columbia" (http://www.vtpi.org/paydbc.pdf ).
"Distance-Based Vehicle Insurance as a TDM Strategy" (www.vtpi.org/dbvi.pdf )
"Pay-As-You-Drive Auto Insurance: A Simple Way to Reduce Driving-Related Harms and Increase Equity" ( http://www.brookings.edu/papers/2008/07_payd_bordoffnoel.aspx )
California Insurance Commissioner Sets Framework For EnvironmentallyFriendly Automobile Insurance, Increased Options For Consumers, California Department of Insurance ( www.insurance.ca.gov/0400-news/0100-press-releases/0070-2008/release089-08.cfm ).
Todd Alexander Litman
Victoria Transport Policy Institute (www.vtpi.org)
Phone & Fax 250-360-1560
1250 Rudlin Street, Victoria, BC, V8V 3R7, CANADA
�Efficiency - Equity - Clarity�