A transition to electronic road user charging (RUC) could provide an opportunity to combine road pricing, usage-based insurance and connected vehicle technology, according to a new white paper published by EROAD and insurance technology provider IMS.
The paper, titled Road Pricing & Connected Insurance: How RUC, UBI and Crash Response Could Converge, examines how New Zealand’s planned transition to distance-based charging across its light vehicle fleet could create opportunities for shared technology infrastructure serving both government and the insurance sector.
New Zealand’s existing RUC system dates back to 1978 and currently covers heavy vehicles over 3,500kg and more than 900,000 light vehicles. The Government intends to extend electronic distance-based charging to approximately 3.5 million petrol cars, with legislative changes expected in 2026.
The white paper argues that both road charging and usage-based insurance (UBI) depend on accurately measuring vehicle use, including distance travelled, road type and time of travel.
It proposes a smartphone-based platform through which motorists could manage road charges, payments and insurance services, with optional features including safer-driving feedback, mileage-based insurance pricing and automated crash detection.
A central theme is data privacy. EROAD and IMS propose a system in which information collected for road charging would remain separate from data used by insurers. Drivers would have control over optional insurance and behavioural data sharing, with on-device processing used to minimise the transfer of raw location information.
The paper also identifies a role for dedicated in-vehicle technology alongside smartphones. IMS’s Wedge device, which connects to a driver’s phone using Bluetooth Low Energy, is presented as a means of recording vehicle mileage independently of whether a phone is present or switched on.
The authors suggest that combining certified distance measurement, edge-based data processing and consent management could provide a scalable alternative to more extensive roadside infrastructure.
Beyond road user charging and insurance, the proposed platform could potentially support congestion pricing, tolling and time-of-use charging.
The paper presents New Zealand as a potential early international proving ground for this approach, although the proposed convergence remains a development opportunity rather than an announced national deployment programme.
EROAD provides electronic road user charging and connected vehicle technology, while IMS specialises in smartphone telematics, driver scoring and connected insurance services.
The full white paper is available HERE.
(Picture: IMS/EROAD)
