• Corpus ID: 17211259

A bottom-up approach to Pay-As-You-Drive car insurance ∗

  title={A bottom-up approach to Pay-As-You-Drive car insurance ∗},
  author={Thorsten Moenig},
Pay-As-You-Drive (PAYD) is a concept in private automobile insurance under which premiums are quoted per mile. It is currently being tested by insurers world wide. With its increase in marginal driving costs Pay-As-You-Drive may present a politically feasible way to reduce driving (around 9%, according to recent studies) all the while saving most people money and increase fairness. The literature so far has analyzed PAYD with a representative agent approach, but concedes that both drivers… 
1 Citations
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