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Pay As You Drive Car Insurance

A new item on the political agenda to decrease congestion and pollution is road pricing. It involves satellite tracking of vehicles, which records your cars position to within 3 metres. Levies will be set depending on the congestion of the route, the busier roads attracting the highest rates. In return, the government intends to scrap the duty on fuel and road tax, leaving a large proportion of lesser road users better off.

However, the implications of the system could even be felt in womens car insurance as the tracker detects speed infringements. Although the government has promised not to use this information, the potential is there and more driving convictions could lead to higher premiums for car insurance. The tracker could provide an innovative, high-tech solution to our congestion problems, but signals worrying times for business and heavy road-users.