# Pay-As-You-Drive Insurance



## F. Kruger (5 Oct 2006)

I suppose that it is only a matter of time?

http://www.norwichunion.com/pay-as-you-drive/index.htm?lid=centreNav&lpos=payd-findoutmore


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## NHG (5 Oct 2006)

I have always said that I thought that road tax and insurance should be included in the petrol/diesel price that we pay at the pumps - that way the guy that drives 500 miles a week pays his share and the guy that drives 50 miles a week pays his share.  Also everyone would automatically have tax and insurance on their vehicle!


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## Miles (5 Oct 2006)

That way we'd 'drive' all the tourists and foreign business people away with the huge fuel prices!


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## Eurofan (5 Oct 2006)

NHG said:


> I have always said that I thought that road tax and insurance should be included in the petrol/diesel price that we pay at the pumps



I've always been a massive advocate of this system as well. They have something similar regarding insurance in New Zealand where every vehicle automatically has third party insurance but if you want fully comp you pay for that yourself. A much fairer system in my opinion.


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## orka (5 Oct 2006)

NHG said:


> .....the guy that drives 500 miles a week pays his share and the guy that drives 50 miles a week pays his share.


 
Each might pay their share of wear and tear on the roads and contributions towards traffic lights etc. but there's a big difference in claims cost between a 17 year old provisional licence driver driving 500 miles and a 50 year old experience full licence driver driving 500 miles.


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## Con (5 Oct 2006)

orka said:


> Each might pay their share of wear and tear on the roads and contributions towards traffic lights etc. but there's a big difference in claims cost between a 17 year old provisional licence driver driving 500 miles and a 50 year old experience full licence driver driving 500 miles.



Is that ageism or something?


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## orka (6 Oct 2006)

It's a simple statement of fact.  Young drivers claims costs are higher than older more experienced drivers - hard to believe you would find this surprising.

Insurance companies are allowed to discriminate on the basis of age (or gender or any other grounds) if they can prove there is a genuine difference in experience.  Which there is.


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## Humpback (6 Oct 2006)

Miles said:


> That way we'd 'drive' all the tourists and foreign business people away with the huge fuel prices!


 
Do people really use this as a decision to travel anywhere? Where in the world has the highest fuel prices for cars? What's their tourism like?

Back on topic, I would love to see the pay-as-you-go insurance coming in here. I don't necessarily believe that it should be added to fuel costs though. There are too many variables for insurance costs to be added to fuel costs - you'd have to have different prices of petrol depending who you were and what kind of car you drive. This wouldn't be feasible.

Road tax I do believe should be added to fuel costs though, since this is purely based on usage of petrol, and usage of the roads themselves. This would allow a standard loading - the more you drive, not matter who you are, the more you'd pay.


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