Pay-As-You-Drive Insurance Policy
Posted By Administrator
There is a proposal that may drastically change the cost of insurance and registration fees from fixed to variable costs. In this proposal by Damien Kettlewell, the basis for insurance is how frequently a motorist would use his vehicle. The less mileage, the lesser the insurance coverage and in turn could translate to savings on fuel. Mode of payment of existing vehicle and insurance fees would just be different.
This proposal aside from lowering insurance cost aims at minimizing vehicular accidents, increase fuel economy and lessen wear and tear on public roads. This will also allow those with lower-income to avail of better automobile insurance.
Source: http://www.flickr.com/photos/13547750@N06/1508564803/