Aviva to test “pay for what you use” rating system

Aviva Canada is planning to test a new auto rating system which would allow drivers to have premiums based on how much they use their vehicle.The new “Autograph” program will be tested early in 2005, and the insurer is currently looking for 5,000 Ontario drivers willing to test the system.The program allows drivers to track their driving habits how much, where and how fast they drive through a device installed in the vehicle. The information can then be downloaded to the driver’s home computer and submitted to the insurer to be used in calculating premiums. The driver has the choice of whether to submit the information or not.The insurer says discounts will be offered where data warrants, up to a maximum of 25%. But anyone who does submit data will receive a minimum 5% discount just for participating.”Insurance consumers have been asking for more clarity and control over how their premium is set,” says Aviva Canada CEO Igal Mayer. “Autograph is a way for drivers to better understand and positively influence their auto insurance premium.” The technology behind Autograph comes through an agreement with Progressive Casualty Insurance in the U.S., the company notes.