Pay-as-you-drive car insurance could reshape transit priorities while generating new funding

The hunt is on for new transit funding sources.  Road pricing — tolls or vehicle levies, for example — is a favourite candidate.

But distance-based insurance, the idea of linking travel behaviour to ICBC premiums, has received less attention, despite the apparent ease of implementation. According to Translink planners, it would be costly and time-consuming to put in place.

Not so, according to Victoria transit policy specialist Todd Litman. His new study suggests a basic version could be good for motorists, the economy and the environment.