Pay As You Drive Insurance and Chrono-Urbanism: time as a strategic variable

Abstract

Within the general class of Pay As You Drive car insurance policies, in this work we propose a Time-Based policy, in which the car use is measured in terms of time spent driving. In particular, we explain how time-based ratemaking can contribute to a better personalization of the premium, with consequent advantages for the insurance company and the policyholder, but at the same time it can represent a useful nudging tool to reduce dependence on cars and can contribute to the achievement of the goals of sustainable mobility, and therefore environmental sustainability, of modern chrono-urbanism models. We also show the results of an analysis carried out on mobility data from the city of Rome which provide some initial information on the link between time and risk, useful both for pricing these policies and for identifying their potential market target and the infrastructural and behavioral aspects that can influence their effective use as an incentive and stimulus for a more aware use of transport means.