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Pay as you go car finance

June 6, 2008

insurance

Discovered recently that new plans for road tax are being proposed, with “nationwide pay-as-you-go charges” being put forward.

According to the BBC:

Variable charges of up to £1.43 a mile – in busy routes in rush hour – could replace road tax and fuel duty under the government’s plans.

Transport experts said it would be the world’s most advanced road pricing scheme – but predicted political and technical difficulties in bringing it in.

Norwich Union are also offering “Pay As You Drive” insurance – as consumers reportedly state they want their motor insurance to be reflective of their car usage and the type of journeys they make. According to Norwich Union:

Norwich Union will be able to collect real-time vehicle data using a ‘black box’ device installed in your vehicle. This will allow monthly insurance payments to be calculated based on how often, when and where you use your vehicle.

Norwich Union believe this represents a major breakthrough in the calculation of fairer motor insurance premiums and ultimately gives you greater control, flexibility and choice.

The black box device measures vehicle usage and sends data directly to Norwich Union using similar technology to that used by mobile phones. You could be billed monthly and the technology will also allow us to offer you associated in-car services, such as emergency assistance and real-time route planning.

For more information:
http://www.norwichunion.com/pay-as-you-drive/
http://news.bbc.co.uk/1/hi/uk/4610755.stm

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