Using GPS data to analyse the distance travelled to the first accident at fault in pay-as-you-drive insurance

In this paper we employ survival analysis methods to analyse the impact of driving patterns on distance travelled before a first claim is made by young drivers underwriting a pay-as-you-drive insurance scheme. An empirical application is presented in which we analyse real data collected by a GPS system from a leading Spanish insurer. We show that men have riskier driving patterns than women and, moreover, that there are gender differences in the impact driving patterns have on the risk of being involved in an accident. The implications of these results are discussed in terms of the 'no-gender' discrimination regulation.