What advantages/disadvantages would “pay as you drive” vehicle insurance bring consumers?
Answers:
I suppose in suggestion it's a accurate impression as it would weaken driving and back the environment etc however I have a sneaking suspicion that the disadvantages far outweigh the benefits.
It would one-sidedly penalise ancestors who hold no opportunity but to drive everywhere i.e. those beside no access to public transport. It would be extremely expensive to set up and monitor and this cost would beyond a shadow of a doubt be passed on to the motorist. It would also be potentially destructive to the discount as business travel costs would increase substantially.
It would be costly for me as I drive fairly a great deal.
Luckily, I hold discovered restrained coupé insurers close to Direct Line and Esure who are much cheaper and endow with a better service than places resembling Norwich Union.
They also don't annoyingly hype on sites which are going on for sharing and asking information.
Advantages
Some control over premiums.
Monthly payments.
Possible benefits to 'worldwide warm' as drivers avoid unnecessary travel.
Disadvantages
Initial cost of black box
Difficulty switching if cover is unsuitable
An 'Emergency' might result in a exceptionally significant excise - e.g. you live within London, Your parents surrounded by Edinburgh and you own to label an emergency bit to see one of them contained by hospital - paying lb300 for the trip is a bit steep.
Change in lifestyle could result in full-size premium increases.
Risk of malfunctioning in box e.g. states you are on a high-risk road when you are not - in that is no process you can proove the premium is correct!!
Penalises dutiful drivers who travel seriously! I may be a cynic but deeply of accident come about terribly close to home/ school/ place of work and are cause by inexperienced drivers i.e. those who enjoy not done much travelling and who don't.
Doug - could you do us adjectives a choose and stir away?
Your insurance company are the biggest rip-off merchants in the country.
If anyone requests to know how to go and get okay sports car insurance I'd recommend them to ring ANYONE but Norwich Union.
Direct Line will pound their quote and service every time.
Agree beside Markymark (above)!!
To take home this work, the AVERAGE driver would enjoy to termination up paying LESS than a majority 'full year' policy ..
Last I hear the single Company to promote the concept (Norwich Union) would appendage up charging the 'average' drive more or less DOUBLE what it would cost elesewhere for a 'regular' policy ..
So I guess (currently) it one and only appeals to morons who can't do math ..