There has been much criticism over the new proposals to charge motorists per journey. Well, hot on the heels are insurance companies who have come up with the idea of pay-as you-driver insurance policy. Pay-as-you-drive (PAYD) insurance promises reduce emissions, lower insurance premiums and enhanced safety, in addition to the anti-fraud gains for the insurance companies that initially motivated its introduction, according to research firm Frost & Sullivan.
It says PAYD is gaining increasing acceptance in Europe as it has significantly brought down insurance premiums for some drivers, although there has been limited take-up in the UK.
PAYD was first introduced as a measure to reduce insurance fraud and having proved its insurance premium benefits for the end customers, the insurance companies are now emphasising the benefits of reduced emissions and improved road safety.
Certain sections of insurance customers, mainly low-mileage drivers and young drivers will be able to save up to 30% on the annual premium due to PAYD, it is claimed.
The research company also says that PAYD is predicted to reduce vehicle travel by a considerable degree, effectively reducing emissions and improving road safety. As a result, governments may be influenced to provide certain tax discounts for insurance companies and customers adopting this payment method.
Yeah right. That will be the day when the government helps motorists.
Jackie Violet - Female First