TO:Insurance Companies and Insurance Company Groups that Issue Private Passenger Motor Vehicle Insurance Policies in Massachusetts
FROM:Joseph G. Murphy, Commissioner of Insurance
DATE:January 21, 2011
RE:Pay-As-You-Drive Auto Insurance Pilot

The purpose of this Bulletin is to inform insurance companies ("insurers") issuing private passenger motor vehicle insurance policies of the an RFR for a Pay-As-You-Drive ("PAYD") Automobile Insurance Pilot Project in Massachusetts issued by the Massachusetts Department of Transportation ("MassDOT") on January 21, 2011.

This pilot will be administered by the Office of Transportation Planning of the MassDOT in close coordination with the Massachusetts Executive Office of Energy and Environmental Affairs (EOEEA) and the Massachusetts Division of Insurance (DOI). MassDOT expects to apply for a grant from the Federal Highway Administration (FHWA) through its Value Pricing Pilot Program (VPPP) in order to fund the majority of the costs of this contract; therefore, MassDOT will also coordinate with FHWA on the design, administration, and evaluation of the PAYD Automobile Insurance Pilot Project. MassDOT will award a contract based on a competitive evaluation of qualified proposals.

Any insurer interested in responding to the RFR will find details at