This acronym may become increasingly common as insurance companies and consumers try out Pay-As-You-Drive insurance. PAYD ties insurance pricing to the amount of driving. A recent study by the Pacific Institute for Climate Solutions looks at the costs of implementation and the potential benefits to consumers, insurance company profitability, and the environment. The study suggests that variable pricing does not simply shift costs from one group of consumers to another. Instead, premiums can be lower with fewer miles driven because accident frequency goes down. The size of the effects of a shift to PAYD awaits continued experimentation and assessment of the results of different types of PAYD programs.