VPP Projects Not Involving Tolls
Category: Projects that Make Auto Use Costs Variable

Project - WASHINGTON: Mileage Based Automobile Insurance in Seattle

Proposals were solicited for an insurance company partner and Unigard was selected from four applications. Unigard Insurance Group is headquartered in Bellevue, Washington and offers car insurance in seven states. Washington State and King County, Washington also set aside some of their own funds to support a pilot project, and together with Unigard, are offering total matching funds of $4,506,000. This pilot will install the field-tested Intelligent Mechatronic Systems' iPAID global positioning system (GPS) mileage recording devices on a sample of approximately 1,100 vehicles, collect baseline data needed to model the options for a PAYD premium structure, select the best premium structure, and roll out and test it in the State of Washington. The study has both a pre-implementation and implementation phase.

The study design has been modified. The revised proposal will lead to the implementation of PAYD insurance in Washington State at an earlier date. Unigard will utilize both vehicle history data from over 4,500 participants that provides odometer information and iPAID technology to verify odometer readings and examine driving behaviors from a data base of current insurance holders. The company will also recruit new participants to the PAYD pilot. Using the larger data base, they will identify the potential markets for mileage based insurance and, if feasible, implement the product at an earlier stage than originally planned. The use of technology and vehicle history data will allow comparison and calibration of odometer readings and estimates of driving behaviors by different markets i.e., age, education, time of driving, land uses. It will also look at marketability of PAYD to various populations i.e. suburban, urban and rural.

Throughout the study, a sample of vehicles will be measured using the iPAID technology to verify odometer readings, assessing the miles driven and measuring driving behavior such as braking and acceleration patterns. The actual mileage based insurance product will be examined in a pre- post- study. The PAYD pilot anticipates installing 1,100 iPAID machines in participant vehicles.

Participants will be surveyed for commute behavior, customer satisfaction, changes in travel modes and travel behavior, use of transit or HOV modes, and intentions to continue with their current insurance policy. Participants will receive discounts for participating in the PAYD pilot. The PAYD pilot will also examine pricing and billing models. PAYD insurance enables substantial consumer savings and has been estimated to lead to between a 9 to 20 percent reduction in driving, with commensurate congestion reduction and air quality benefits. The PAYD pilot will also develop estimates of emissions reductions.

Pre-Implementation Funds Awarded

2007

Anticipated Completion Date

2012

July - September 2011 Update

King County's Mileage Based Auto Insurance Project (MBAI) was notified by Unigard, the insurance company partner that they wish to terminate their agreement. After discussions both within King County as well as with partners the decision was made to issue a new RFP for a vendor to offer a MBAI product in Washington State. The new RFP will focus on the implementation phase of the project as with particular interest in outreach, recruitment, and evaluation of behavior changes of participants. The project hopes to integrate the MBAI offering with transit incentives to assess the mode changes of individuals who have access to transit. The expectation is that the MBAI product will be available to the public in 2012. The County issued the new RFP on October 6, 2011 with responses due November 3, 2011. The County received 2 responses and it is expected that a new vendor will be selected by December 5, 2011. Contract negotiations will commence immediately with an expectation that the new vendor will move quickly in getting a MBAI product approved by the Office of Insurance Commissioner and available to the public.

For More Information Contact

Ref Lindmark
Transportation Planner
King County Metro Transit
Phone: (206) 684-1104
E-mail: ref.lindmark@kingcounty.gov

Back to Projects that Make Auto Use Costs Variable

Search Tolling and Pricing: Home About Tolling and Pricing Programs Value Pricing Pilot Program Express Lanes Demonstration Program HOV Facilities Interstate System Reconstruction & Rehabilitation Pilot Program Interstate System Construction Toll Pilot Program Title 23 United States Code Section 129 Toll Agreements Team Webinar Series Resources Expression of Interest Regulations/Policy FAQs	Home > VPP Program > Projects > Not Involving Tolls > Projects that Make Auto Use Costs Variable VPP Projects Not Involving Tolls Category: Projects that Make Auto Use Costs Variable Project - WASHINGTON: Mileage Based Automobile Insurance in Seattle Proposals were solicited for an insurance company partner and Unigard was selected from four applications. Unigard Insurance Group is headquartered in Bellevue, Washington and offers car insurance in seven states. Washington State and King County, Washington also set aside some of their own funds to support a pilot project, and together with Unigard, are offering total matching funds of $4,506,000. This pilot will install the field-tested Intelligent Mechatronic Systems' iPAID global positioning system (GPS) mileage recording devices on a sample of approximately 1,100 vehicles, collect baseline data needed to model the options for a PAYD premium structure, select the best premium structure, and roll out and test it in the State of Washington. The study has both a pre-implementation and implementation phase. The study design has been modified. The revised proposal will lead to the implementation of PAYD insurance in Washington State at an earlier date. Unigard will utilize both vehicle history data from over 4,500 participants that provides odometer information and iPAID technology to verify odometer readings and examine driving behaviors from a data base of current insurance holders. The company will also recruit new participants to the PAYD pilot. Using the larger data base, they will identify the potential markets for mileage based insurance and, if feasible, implement the product at an earlier stage than originally planned. The use of technology and vehicle history data will allow comparison and calibration of odometer readings and estimates of driving behaviors by different markets i.e., age, education, time of driving, land uses. It will also look at marketability of PAYD to various populations i.e. suburban, urban and rural. Throughout the study, a sample of vehicles will be measured using the iPAID technology to verify odometer readings, assessing the miles driven and measuring driving behavior such as braking and acceleration patterns. The actual mileage based insurance product will be examined in a pre- post- study. The PAYD pilot anticipates installing 1,100 iPAID machines in participant vehicles. Participants will be surveyed for commute behavior, customer satisfaction, changes in travel modes and travel behavior, use of transit or HOV modes, and intentions to continue with their current insurance policy. Participants will receive discounts for participating in the PAYD pilot. The PAYD pilot will also examine pricing and billing models. PAYD insurance enables substantial consumer savings and has been estimated to lead to between a 9 to 20 percent reduction in driving, with commensurate congestion reduction and air quality benefits. The PAYD pilot will also develop estimates of emissions reductions. Pre-Implementation Funds Awarded 2007 Anticipated Completion Date 2012 July - September 2011 Update King County's Mileage Based Auto Insurance Project (MBAI) was notified by Unigard, the insurance company partner that they wish to terminate their agreement. After discussions both within King County as well as with partners the decision was made to issue a new RFP for a vendor to offer a MBAI product in Washington State. The new RFP will focus on the implementation phase of the project as with particular interest in outreach, recruitment, and evaluation of behavior changes of participants. The project hopes to integrate the MBAI offering with transit incentives to assess the mode changes of individuals who have access to transit. The expectation is that the MBAI product will be available to the public in 2012. The County issued the new RFP on October 6, 2011 with responses due November 3, 2011. The County received 2 responses and it is expected that a new vendor will be selected by December 5, 2011. Contract negotiations will commence immediately with an expectation that the new vendor will move quickly in getting a MBAI product approved by the Office of Insurance Commissioner and available to the public. For More Information Contact Ref Lindmark Transportation Planner King County Metro Transit Phone: (206) 684-1104 E-mail: ref.lindmark@kingcounty.gov Back to Projects that Make Auto Use Costs Variable
	US DOT Home \| FHWA Home \| Operations Home \| Tolling and Pricing Home \| Privacy Policy