Applications

Potential Usage of PAYGO System
Pay As You Go vehicle insurance:
Insurance premiums will be set according to actual vehicle use and the time of day at which it traveled. The ability to gather drivers’ travel time data allows for the creation of an insurance policy in which drivers who travel infrequently and at times are considered “not dangerous”, will pay a low premium, whereas heavy vehicle users or those who travel when traffic is dangerous will pay a high premium.

Insurer’s advantages:
  • A first rate marketing tool that attracts a preferred clientele (drivers who drive sparingly).
  • Improvement of the insurance portfolio through reduction of accident risk of insured clients.
  • Long term retention of clients.
  • Creation of a vehicle usage data base and the correlation with accidents.

Advantages for clients who drive sparingly:

  • Hundreds of dollars per year in premium savings
  • No invasion of privacy – the data collected is not sensitive (such as vehicle location and speed).
  • The vehicle is not damaged during installation of the travel time meter


Pay As You Go vehicle registration fee:

A significant portion of the vehicle registration fee will be based on the number of hours driven and the time of day at which the vehicle traveled.

Using PAYGO SYSTEM will make it possible to:

  • Reduce traffic density at rush hour through appropriate incentives that will induce some of the drivers to shift their driving from the rush hour to less crowded times, thus reducing traffic pressures.
  • Allow traffic to speed up during rush hour (as a result of the reduction in vehicle density).
  • Reduce fuel consumption due to the increase in travel speed.
  • Reduce air pollution.
  • Reduce wasted time on the roads.
  • Enhance social justice: those who travel less pay less.


Fleet Management:

Employing PayGo SYSTEM will make fleet management simple and low cost. In a large proportion of vehicle fleets, information on location of the automobiles is not needed. All that is required is data in relation to when the vehicle traveled and how long was its journey.