A San Francisco-based technology firm has partnered with an Australian insurer to create a "trust-based" auto policy based on miles driven that involves no monitoring device attached to the vehicle.

The new product offers low-mileage drivers a way to reduce their auto premiums by lowering the technology barriers impeding the introduction of "PAYD"--or "pay as you drive"--in world auto insurance markets, according to Exigen Insurance Solutions, which is partnering with Real Insurance (Australia) on the initiative.

Real Insurance, a part of the Johannesburg, South Africa-based Hollard Group of companies, offers Australian motorists a usage-based insurance product that allows them to pay only for the kilometers they plan to travel.

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