A Qualitative Assessment of the Perceived Sacrifices in Pay-How-You-Drive use of German Motorists

Abstract

Approximately 1.3 million people die in road crashes every year. Pay-How-You-Drive (PHYD), can help to address this societal challenge. Mainly promoted by motor insurers, it can provide premiums that are fully based on individual driving scores to incline motorists to adapt their risky driving behaviour. However, despite the technology’s high potential in terms of protecting human life, PHYD is still a niche topic in Germany. In this research, we identified factors that motorists perceive as sacrifices they are required to make when using PHYD. A qualitative content analysis of 19 semi-structured interviews using simultaneous independent coding revealed six categories of perceived sacrifices, including Transparency & Complexity, Acceptability of Risk Factors, Financial Distress, Teasing & Sanctioning, Privacy & Data Insecurity, and Technical Issues. To realise PHYD's full safety-enhancing potential, policymakers and practitioners must act to regulate the negative aspects associated with PHYD. This research provides a comprehensive foundation for this discussion.