Pay Per Mile Car Insurance?

With pay per mile car insurance becoming imminent within the uk we try to look at some of the issues that may be raised with this highly controversial approach to insuring cars on the UK's roads.

The concept of pay per mile car insurance is as simple as it sounds, it is proposed that anyone using a car on UK roads will pay for there car insurance in relation to the amount of miles they travel. Early signs suggest that the scheme will involve greater charges for travel on some of the UK's major routes and most dangerous roads. The concept involves what can only be described as a gps tracker fitted into vehicles, which directly relates the amount of miles that have been travelled in that car. Simple?You would think so, but will this really be the case?

I suppose that one way of looking at pay per mile insurance is that it is the fairest way to charge road users for insurance premiums, for example why should two identical women end up paying the same premium for there car insurance? Is this fair when one of them drives five miles a day and the other does a fifty mile round trip? I suppose this is an obvious benefit to the scheme for those who only drive short distances. However if you were the woman that had to drive the fifty mile round trip would you find it so fair?

So one problem to be raised is how much do you charge per mile? This could result in some workers seeing their insurance cost escalate so dramatically that running a car no longer becomes financially viable........