Institute of Electrical & Electronic Engineers
Pay-as-you-drive insurance schemes are establishing themselves as the future of car insurance. However, their current implementations, in which fine-grained location data are sent to insurers, entail a serious privacy risk. The authors present PriPAYD, a system where the premium calculations are performed locally in the vehicle, and only aggregated data are sent to the insurance company, without leaking location information. Their design is based on well-understood security techniques that ensure its correct functioning. They discuss the viability of PriPAYD in terms of cost, security, and ease of certification.