Guidelines 1/2020 on processing personal data in the context of connected vehicles and mobility related applications

Paragraph 3.1.1  Pay as you drive (PAYD) insurance

103. Pay as you drive is a type of usage-based insurance that tracks the driver’s mileage and/or driving habits to differentiate and reward “safe” drivers by giving them lower premiums. The insurer will require the driver to install a built-in telematics service that tracks the miles covered and the driving behaviour (braking pattern, rapid acceleration, etc.) of the policy holder. The information gathered by the telematic device will be used to assign the driver scores in order to analyse what risks he/she may pose to the insurance company.

104. The EDPB outlines that pay as you drive type of insurance should always be optional ; the policy holder must have the choice to subscribe to a non-usage-based insurance policy.