Petraki V., Kontaxi A., Yannis G., “A social Cost-Benefit Analysis for the provision of financial incentives and benefits for vehicle insurance policies using telematics”, Proceedings of the 12th International Congress on Transportation Research (Thessaloniki, Greece, 16-18 October 2025).

Telematics can offer significant social and environmental benefits, enhancing safe, efficient, and eco-friendly driving. This paper aims to investigate the economic feasibility for the provision of financial incentives and benefits by the state for car insurance policies based on telematics, using the Greek State as a case study. A social Cost-Benefit Analysis (CBA), is carried out focusing solely on passenger car insurance policies, up to the year 2030. A questionnaire survey conducted to determine the acceptance of telematics insurance policies with >1,000 participants. Four alternative Scenarios are investigated, with different provided financial incentives and benefits, and for each of them, the required State Grant and the impact on road safety, travel time, fuel consumption, and the environment are estimated and monetized. Positive Net Present Values (NPV) and high Internal Rates of Return (IRR), i.e. 4.8%-52.7%, obtained in all Scenarios while the sensitivity analysis indicates the feasibility of the public investment over time.