PayGo Systemsenables insurers to provide a Usage-based Insurance (UBI) policy where premiums are set according to the actual length of time and the time of day the vehicle is in use. The ability to gather reliable driver travel time data allows the insurer to provide a UBI policy which rewards drivers with lower premiums when traveling less than average and at times defined by the insurer as “low-risk” hours. Drivers using the vehicle more than average and at higher risk hours would not enjoy a discount or might pay a higher rate for using the vehicle in this fashion.

• A first-rate marketing tool for attracting preferred clientele (drivers who drive sparingly).
• Improved insurance portfolio due to reduced clientele accident risk exposure.
• Higher renewal rate.
• Creation of a vehicle usage data base and its correlation with accidents.

• Hundreds of dollars per year in premium savings.
• No invasion of privacy – no collection of personal, sensitive data (i.e. vehicle location, speed, etc.).

PayGo Systems enables federal, state and municipal authorities to base a significant portion of the vehicle RP on the number of hours and on the time of day the vehicle is driven.
The authorities could affect a cost structure based on actual driving – higher costs at peak hours and at high-risk hours, reduced costs at off-peak hours and at low-risk hours of the day.

PayGo Systems-based RP will effect:

• Reduced traffic density at rush hour through incentives to drivers who avoid driving at specific hours.
• Faster moving traffic during rush hour due to reduced number of vehicles on road.
• Reduced fuel consumption due to increase in travel speed.
• Reduced air pollution and GHG emission.
• Reduced wasted time in traffic.
• Enhanced social justice - those who travel less pay less.