MILEAGE-BASED USER FEE DEMONSTRATION PROJECT: Potential Public Policy Implications of Pay-As-You-Drive Leasing and Insurance Products

The Federal Highway Administration and the Minnesota Department of Transportation co-sponsored a demonstration to test how consumers would change their driving behavior if some of the fixed costs of owning and operating a car were to be converted to variable costs. Two primary components of the project included a market assessment and report on the experiment findings. An analysis was also conducted of public policy and private sector market implications for pay-as-you-drive (PAYD) products which concluded with recommendations on how to mainstream major findings: Target to the most receptive markets in areas where significant travel options exist;ƒ Explain PAYD concepts clearly to potential markets;ƒ Structure products so that consumers can manage risk and uncertainty by setting caps on variable costs;ƒ Enable people to opt out if they are not comfortable with PAYD products; andƒ Provide significant cost savings potential to make the PAYD option worthwhile.

  • Record URL:
  • Corporate Authors:

    Cambridge Systematics, Incorporated

    150 Cambridge Park Drive, Suite 4000
    Cambridge, MA  United States  02140-2369

    Minnesota Department of Transportation

    Research Services Section, 395 John Ireland Boulevard, Mail Stop 330
    St Paul, MN  United States  55155
  • Authors:
    • Buxbaum, Jeffrey
  • Publication Date: 2006-3


  • English

Media Info

  • Media Type: Digital/other
  • Edition: Final Report
  • Features: Tables;
  • Pagination: 27p

Subject/Index Terms

Filing Info

  • Accession Number: 01597258
  • Record Type: Publication
  • Report/Paper Numbers: MN/RC-2006-39C
  • Contract Numbers: 85962
  • Created Date: Mar 24 2016 9:39AM