M2M Applications - Pay As You Drive
Here is a true M2M Application that is being rolled out commercially that will impact you. The application allows users to pay for car insurance based on usage. You pay for as much as you consume - you drive 100 miles you pay insurance for 100 miles - you drive 100,000 miles you pay insurance for 100,000 miles. This is could change the face of the car insurance industry and if widely adopted / deployed on a standardized platform will allow other ancillary products and services to be offered to car drivers - Internet, Yellow Pages, Drive By/Localized Ad’s (won’t we love that), Streaming Music (everyone one wants a radio on the car) and more.
The application (PAYD) as you go is being used by insures in UK/Europe to offer drivers a means to pay for insurance based on actual miles driven. The cars have a built in GPS system that track the movement of the vehicle in real time - where you drive, when you drive and how often you drive (AKA Big Brother). Cool technology concept - but to make it a commercial success it needs to assuage consumer fears about Big Brother is watching.
Quote from the insurance Company
“Pay As You Drive”â„¢ insurance couldn’t be simpler. You pay a fixed monthly fee, plus a variable charge that’s based on your personal driving habits such as when you drive and how far.
- An in-car device (that uses GPS technology) records and transmits your cars journey information to our central computer.
- You receive a monthly bill (itemised billing is an optional service).
- Your premium is based on where, when and how far you drive.