Reduce the rush hour with rates?

What if your insurance company tracks every movement of your car?
What if your payment is based on where and when and how far you drive?

Aviva Insurance in Britain uses Trafficmaster’s dashboard GPS to automatically transmit an encrypted account of a car’s exact movements — road-by-road, mile-by-mile — in order to produce an itemized monthly bill. The rate can jump from a few pennies per mile to dollars per mile. Time and location is a good indication of accident risk.

Rush hour drivers are 50 percent more likely to have an accident.

Drivers on country roads are 10 times more likely to have an accident than on highways.

Serious accidents & fatalities are far more likely from midnight to five in the morning.

To save money, a student in Britain is no longer driving at night. “I pay half as much for insurance and think twice about using the car during times that are considered high risk for accidents. For the first month I’d drive to lectures when I got out of bed late, but looking at the bill convinced me to get up earlier and walk.” [story]