Crimson - Business Benefits

Crimson provides a slew of business opportunities for Insurance companies.

• Increased affordability
  Pay-As-You-Drive vehicle insurance is more affordable. It allows more lower-income households to insure their vehicles, and makes it more cost effective for households of any income class to insure an extra vehicle that is seldom driven, such as an old truck used for errands or a recreational vehicle.
• Consumer savings
  The average motorist is predicted to save substantially, and these savings represent the reductions in insurance compensation costs that are returned to individual motorists who reduce their driving, and therefore reduce their chance of having a crash. These are true cost savings, not just economic transfers.
• Increased safety
  Vehicle crashes should decline even more than mileage because higher-risk motorists (who currently pay high premiums per vehicle-year) would pay higher per-mile fees, and would therefore have the greatest incentive to reduce their driving. This would significantly reduce fatalities and prevent a much larger number of disabilities and injuries.
• Increased fairness
  Current insurance pricing overcharges motorists who drive less than average, and undercharges those who drive more than average each year in a price category. PAYD would remove this imbalance.
• Progressive
  Lower-income groups tend to drive less than average.. But the current system charges them the same premium amount that high income vehicle owners who drive more, pay. This serves to subsidise the insurance costs of higher-income groups. Current insurance pricing results in high premiums in lower-income areas (since a greater portion of low-mileage motorists drive uninsured, which in turn reduces funds to cross-subsidise higher-mileage motorists), a problem that can be corrected by PAYD pricing.
• Reduced uninsured driving
  PAYD pricing makes insurance more affordable. This can help reduce uninsured driving. Surveys indicate that most uninsured drivers would pay for insurance if it were more affordable.
• Reduced need for cross-subsidies
  Pay-As-You-Drive pricing reduces the need to overcharge low-risk drivers in order to provide “affordable” unlimited-mileage insurance coverage to higher-risk motorists.
• Reduced vehicle travel
  Pay-As-You-Drive insurance is predicted to reduce vehicle travel substantially, making this one of the most effective TDM strategies currently proposed. It not only reduces traffic congestion, road and parking facility costs, pollution emissions, consumer costs, and urban sprawl. But more importantly, from an insurance firm's business point of view, it also reduces the average accident rate that results in doling out claims amounts.
• Economic efficiency
  Pay-As-You-Drive Insurance conveys to drivers the true costs they impose and allows motorists a chance to save money by reducing these costs. It reflects the principle that prices should reflect costs.
• Emission reduction
  Distance-based fees would reduce energy consumption and pollution emissions.

The benefits of Pay-As-You-Drive vehicle insurance are coupled with accurate data collection that feeds the PAYD system, which is made possible by the complete integration of in-vehicle and back-end technology. This makes Crimson an attractive vehicle insurance option for any vehicle owner and a lucrative business model for insurance companies. In the bigger picture, it also helps diminish the rate of fuel emissions and road congestions, and increases road safety and better driving habits.