Pay-As-You-Drive Schemes for Mature Drivers
Car insurers are introducing the second set of pay-as-you-drive schemes and this time it will benefit not only drivers of the under-25 age group but mature experienced motorists as well. The motoring technology used by the insurers is a global positioning system. It also includes devices like anti-theft device and mileage record device which are far more advanced than previous ones. Based on this technology, Co-operative Insurance has introduced a fresh policy that could help lessen insurance premiums for young motorists to 1p a mile from 5p a mile.
According to Motor Insurers’ Bureau almost 2 million UK drivers are out on the road without insurance. The Co-op estimates that the average cost of cover for young motorists have risen by almost four times the rate of inflation last year. Premiums also are so high that there is a threat of increasing number of an “uninsurable generation” in the future. Drivers in the age band of under-25 pay almost 1,463 a year as premiums which has increased by 11.5% compared with an inflation rate of 3.1%.
Director of general insurance at the Co-op, Dave Neave predicts that if such a condition of increased premium prevails in the market, then there are high chances of the number of uninsured Young Drivers going up. Presently, the number of deaths of young drivers on the road is a whopping 13 a week which Dave Neave feels could be reduced to a great extent by educating them about road safety measures and tips. The black box is set up in the car which calculates premiums based upon the individual’s actual risk and whether the car is being used in peak or off-peak times. To apply for the Co-op scheme, the drivers must have adequate knowledge on the dangers of drunken driving, over-speeding, importance of insurance and effects of not wearing a seatbelt.
The scheme has been helpful not only in terms of reduced premium but also helped in changing the driving habits of many individuals.
100% 
95% 
