Pay As You Drive

Pay as You Drive road pricing is the latest item on the political agenda to decrease congestion and pollution on our roads. Satellite tracking can pinpoint the position of your vehicle to within three metres. The government intends to scrap the duty on fuel and road tax, leaving a large proportion of lesser road users better off. To replace this lost income, charges on roads will be set depending on the congestion of the route. The more congested the highway, the higher the rates.

A result of the system could even affect car insurance. The tracker detects speed infringements and although the government has promised not to use this information, the technology is there. Increased driving convictions could lead to higher insurance for cars and mean days are numbered for cheaper car insurance.

The tracker is a high-tech, 21st century solution to congestion problems, but could cause concerns for those with heavy road use or individuals who use their vehicles for business.

4 Young Drivers offers telematics "black box" insurance for young drivers. Get a quote and see if you could save money on your car insurance.

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Tags: Pay as You Drive

Released On 15th Sep 2006

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