Insurance Policy: A New Approach to ISA

This article describes the “Pay as You Speed” project being conducted by Aalborg University in Denmark. The project involves Intelligent Speed Adaptation (ISA) equipment comprised of an On Board Unit (OBU) that receives Global Positioning System (GPS) information and a digital speed map. An LCD display unit shows the actual speed limits, while a voice warns the driver when speeding occurs. Penalty points relating to the degree of speeding that takes place and the ensuing insurance consequence are detailed. The article also discusses the effect of ISA information and the associated economic incentives.